The Evolving Role of Public and Private Markets
Sviatoslav Rosov, PhD, CFA
The increased pressure of public markets to maximise shareholder value is stated to force companies to chase short-term profits. Investors' focus on environmental and corporate sustainability has increased and corporate disclosure requirements have risen.
At the same time, corporates' possibilities to access capital from other than public markets have widened through private placement. Third, several new business models have high intangible asset base which makes them scale very rapidly with less capital than before.
This all has caused private markets to rise in size compared to the public market. What are the implications to public markets, how will the capital formation change in the near future and what should investors, regulators and corporates take into consideration?
This year’s Charter Awards and Christmas Party offers an interesting presentation on this subject by Sviatoslav Rosov, PhD, CFA. He is a director, Capital Markets Policy EMEA at CFA Institute. Sviatoslav is responsible for developing research projects, policy papers, articles, and regulatory consultations that advance CFA Institute policy positions, focusing on market structure and wider financial market integrity issues.