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 .
