The recent shifts in capital markets – Private Markets on the rise

Newsletter Review | December 2025

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The Magnificent Seven are now the same size as the combined public stock markets of Japan, UK, Canada, Switzerland, and Germany

The influence of the Magnificent Seven on global public market dynamics is substantial: they account for 33% of the S&P 500, the highest concentration since the 1960s, and generated 60% of the index's total return in 2023.

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The shrinking public markets

Beyond the Magnificent Seven, the investment landscape is changing. While public markets were once the primary destination for successful, profitable companies, they have increasingly become the stage for speculative, hype-driven IPOs. Today, only around 20% of all newly public US companies are profitable, down from 85% in the 1990s. At the same time, the number of listed domestic US companies has dropped from 7'000 to 4'300 in 23 years.

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The rise of Private Markets: Public vs. private capital formation

Over the past two decades, Private Markets have evolved from the traditional leveraged buyout strategies, to the primary financing source for a significant portion of companies operating in the real economy – making up over 70% of total capital raised.

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