Private Markets
Private markets play a vital and growing role in financing U.S. businesses and supporting economic growth. Through private offerings, companies can raise capital efficiently, diversify funding sources, and access long-term investors — including pension funds, endowments, and other institutional investors that rely on these markets to meet their financial obligations.
SIFMA supports policies that preserve access to capital formation, enhance transparency where appropriate, and promote investor protection without hindering the flexibility and innovation that make private markets an essential complement to public markets.
Key Focus Areas
Strengthening Capital Formation
Private markets are a cornerstone of U.S. economic dynamism, allowing companies of all sizes to raise capital outside traditional public offerings. These markets have expanded significantly over the past decade, providing vital funding for emerging and middle-market companies that may not desire or yet be ready — or suited — for public listings.
SIFMA supports regulatory approaches that ensure these markets continue to provide efficient access to capital, particularly for entrepreneurs, small and mid-sized businesses, and job creators. We encourage policymakers to recognize the distinct role private markets play in driving innovation and supporting economic resilience.
Ensuring Appropriate Oversight and Transparency
While private markets serve a distinct function from public markets, effective oversight remains essential to investor confidence and market integrity. SIFMA supports a balanced approach that:
- Preserves the confidentiality and efficiency that underpin private capital formation;
- Encourages clear and consistent disclosure standards for large or systemically significant participants; and
- Avoids duplicative or overly prescriptive reporting requirements that could discourage participation.
The goal is to ensure accountability and transparency where it adds value, without undermining the purpose and structure of private offerings.
Coordinating Regulatory Efforts
Recent proposals by regulators have sought to expand the reporting and disclosure obligations of private fund advisers and issuers. SIFMA urges coordination among the SEC, CFTC, and prudential regulators to avoid fragmented rules that could raise compliance costs, distort competition, or limit investor choice.
A coherent, harmonized approach will better support both capital formation and investor protection.
Supporting Investor Access and Education
Institutional investors — including pension plans, insurance companies, and endowments — are key participants in private markets, helping to finance innovation and growth across industries. SIFMA also supports efforts to expand responsible access for sophisticated investors while improving investor understanding of private offerings’ risks, structures, and liquidity characteristics.
The Bottom Line
Private markets are a critical source of financing for American businesses and a key driver of innovation, growth, and job creation. SIFMA supports a balanced regulatory framework that maintains transparency and investor protection while preserving the flexibility and efficiency that make these markets thrive.
