What's happened
Recent developments include US asset managers returning to private markets amid AI-driven valuations, UK regulators proposing a second operator for private company trading platforms, and ongoing reforms to improve liquidity transparency in UK equity markets. These shifts reflect a broader move towards private investments and market transparency.
What's behind the headline?
UK Market Reforms and Private Investment Trends
The FCA's proposal to include a second operator for the PISCES platform aims to enhance competition and provide a clearer view of liquidity, addressing longstanding concerns about the UK’s market depth. This move is part of a broader effort to make UK markets more attractive for listings and investments.
Meanwhile, the resurgence of private market investments by major US asset managers like Tiger Global and Coatue signals a strategic shift. These firms are leveraging AI-driven valuations and private equity opportunities to bypass the broken IPO market, which they see as increasingly inefficient and risky.
The combination of regulatory reforms and private market focus suggests a future where more capital flows into private assets, potentially reducing reliance on public markets. This could lead to a more segmented investment landscape, with private markets offering higher returns but also higher risks and less liquidity.
Overall, these developments indicate a strategic realignment in global investment practices, emphasizing transparency, competition, and long-term growth outside traditional public markets. Investors should watch for further regulatory adjustments and private market activity, which will shape the next phase of market evolution.
What the papers say
The New York Times reports on the UK’s proposed reforms to improve liquidity transparency through a second operator for the PISCES platform, highlighting efforts to make UK markets more attractive for listings. Business Insider UK discusses the return of US asset managers to private markets, driven by AI valuations and market conditions, emphasizing a strategic shift away from public equities. Reuters provides context on the long-standing issues with UK investment trusts, their discounts, and recent activist investor actions, illustrating broader market sentiment and potential reforms. These sources collectively underscore a global trend towards private investments and market transparency, with regulatory and strategic shifts shaping future market dynamics.
How we got here
The push for private market growth in the UK stems from longstanding issues with liquidity and public market attractiveness, compounded by recent declines in UK equities and outflows. US asset managers, recovering from 2022 tech routs, are now focusing on private markets, especially AI-related startups, as a way to access long-term growth outside volatile public markets.
Go deeper
Common question
-
What Are the Latest Developments in Private Markets and Financial Reforms?
Recent shifts in private markets and financial regulation are shaping the future of investing in the UK and US. From new trading reforms to strategic moves by major firms, these changes are sparking questions about how investors and companies will navigate the evolving landscape. Below, we explore key updates, including UK reforms, private equity activity, and the impact of AI on valuations.
-
What Are the Latest UK Financial and Market Reforms in 2025-2026?
UK markets are undergoing significant changes this year, with reforms aimed at boosting transparency, supporting private investments, and adapting to new technologies like AI. Investors and industry watchers are asking: what exactly is changing, and how will it impact the economy? Below, we explore the key reforms and what they mean for the future of UK finance.
-
What Are the Latest Changes in UK Private Markets and Why Do They Matter?
Recent developments in UK private markets and market reforms are shaping the future of investing. From new regulatory proposals to shifts in market dynamics, understanding these changes is crucial for investors and market participants alike. Below, we explore the key questions about what's changing, why it matters, and how it could impact your investments.
-
What Are the Key Global Tensions Involving Iran, the US, and Korea Today?
Recent developments around Iran, the US, and Korea have sparked widespread concern about global stability. From political crises and economic struggles to diplomatic conflicts, these tensions are shaping the world stage. Curious about what's happening and what it means for the future? Below, we answer some of the most pressing questions about these ongoing crises.
More on these topics
-
The Financial Conduct Authority is a financial regulatory body in the United Kingdom, but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry.