Capital Formation, Private Markets and Financial Stability

As private markets become a larger source of financing for businesses, infrastructure, and innovation they are reshaping how capital moves through the financial system. While these markets can support growth, diversification, and competitiveness, they also raise important questions around transparency, interconnectedness, valuation, liquidity, and systemic resilience. For risk leaders, the challenge is no longer whether private markets matter, but how evolving capital structures may alter the risk landscape for both individual institutions and the financial system as a whole.