What the decline in public listings means for retail investors

THE statistics on public market participation by corporations over the last two decades make for grim reading in developed markets. From the US to the UK, Euro area and even Singapore, the number of companies listed publicly on exchanges has shrunk - in some cases dramatically - over the last two decades or so. In contrast, private markets have grown rapidly in the same period, with the rise of private equity, real estate and private debt funds.

These trends have a number of serious implications, for retirement planning of retail investors in particular, given that many of them have exposure largely to public markets, with little or no access to private markets.

The shift from public to private capital formation, its implications for investors, as well as policy recommendations to address the issues raised, are discussed in recent research by CFA Institute.