Private markets now shape capital formation, portfolio construction, and financial stability. This report examines private markets’ growth, risks, and implications for investors, policymakers, intermediaries, and the investment profession.
At a Glance
- Private markets are now central to capital formation, as more companies stay private longer and institutional allocations to private enterprises rise.
- The growth of private markets is changing capital market structure; that is, they are changing how capital is raised, priced, governed, and deployed throughout the economy.
- Issuers, asset owners, intermediaries, and policymakers are reinforcing the shift to private markets as companies seek flexible capital, investors seek enhanced returns, managers seek higher-fee products, and governments seek long-term investment funding.
- Key considerations for success include improved disclosure transparency, valuation standards, investor protection safeguards, and governance oversight.
- Investment professionals must build the knowledge, skills, and capabilities necessary to strengthen valuation processes, liquidity planning, governance, performance measurement, and systemic risk oversight .
