Thriving public and private capital markets are essential to America’s economic growth — they create investment opportunities, drive innovation, support job growth, and strengthen retirement savings.
America’s public and private capital markets have long been the envy of the world. However, regulators must tackle challenges in both public and private capital markets to maintain America’s economic leadership and encourage investment at home.
The challenge facing markets, by the numbers:
There are 4,642 public companies in the U.S. today—a 40% decline from the peak of 8,090 in 1996.
IPOs have declined by 90% since 1996.
The number of unicorns, or startups worth over $1 billion, has increased from 32 in 2014 to over 650 today—a 2000% increase.
Why are capital markets critical?
America’s public and private capital markets are the foundation of the nation’s economy, efficiently connecting companies with vast pools of investors, driving economic growth, wealth creation, and retirement security. Together, public and private capital markets empower businesses at every stage of growth and provide all investors with a diverse set of options to meet their investment goals. Expanding access to public and private capital sources is critical to securing America’s economic future.
Capital markets are essential to...
How can America improve its capital markets?
Regulators can take several steps to reinvigorate and strengthen America’s capital markets to ensure the nation’s continued economic growth and national prosperity:
Cut red tape
Regulators should undertake a holistic review of recent rules that harm markets and cut unnecessary red tape. Markets will benefit from a methodical and careful review of the current rules, many of which add unnecessary costs and burdens without a clear benefit to investors and markets.
Embrace alternative asset managers:
Alternative asset managers help ensure a more resilient financial system. They reduce risk through diversification and provide businesses with the necessary capital to expand, create jobs, and innovate. These investments support hardworking Americans by generating steady returns for pensions, foundations, and endowments.
Create a public market that attracts companies
A strong public market needs a regulatory framework that supports growth, innovation, and sound corporate governance. Regulators should embrace accounting controls and disclosure requirements that provide investors with relevant information without imposing unnecessary compliance burdens on companies.
Adopt pro-growth tax policies
A stable and competitive tax environment is essential for fostering investment, innovation, and economic growth. Policies should encourage capital formation by maintaining incentives that support entrepreneurship and long-term investment.
Unlock private markets
Policymakers should modernize regulations to ensure investors have greater opportunities to participate in private markets. A more inclusive investment landscape strengthens capital formation, supports economic growth, and enhances financial security for a broader range of investors.
Find out how alternative asset managers affect everyday Americans in your state.
Private credit and hedge funds are investing in opportunities in all 50 States
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American pensions, foundations, and endowments invest nearly $1.3 trillion with hedge funds.
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American businesses rely on more than $1 trillion in capital from private credit funds to innovate, hire, and grow.
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