Over the past decade, we have seen two key trends emerge.

A significant rise in private capital markets — supported by a low-interest rate environment for many years — providing companies with alternative funding sources.

And the relative decline in global public equity markets, with over-regulation often cited as a contributing factor.

This shift presents both opportunities and challenges. On the one hand, the UK has benefited from the expansion of private market funding, attracting substantial international investment and reinforcing London’s role as a global capital hub. On the other, companies are staying private for longer, reducing the flow of companies to public markets for investors and limiting the economic benefits of a thriving equity market.

Despite these challenges, the UK’s public markets remain a vital engine for economic growth. Our capital markets—both public and private—stand at an extraordinary £6.9tn, with £646.4bn in new capital issued in 2024 alone. Yet there is still room to improve access to capital, enabling more businesses to scale and succeed.

UK Finance published a report on 31 March, outlining how public and private markets can work together to support business growth.

Source: Fnlondon