The Australian Securities & Investments Commission (ASIC) has published a discussion paper setting out its preliminary views on opportunities and risks arising from changing dynamics between Australia’s public and private capital markets, and is inviting feedback on how its regulatory approach may need to adapt. The paper examines trends including declining public market listings and IPOs, rapid growth in capital allocated to private markets, and the increasing influence of superannuation funds. It flags concerns about potential deterioration in the quality, diversity and depth of public companies, and highlights risks in private markets such as opacity, valuation uncertainty, conflicts of interest, illiquidity and leverage, with particular attention to private credit which ASIC notes is not currently systemically important but is untested by prior crises. The release also points to gaps in ASIC’s data and information-gathering capabilities for private markets compared with international peers, and notes increased supervision of private equity and private credit funds in 2025, including thematic surveillance of governance, valuation, conflicts management and investor treatment, plus testing retail private credit funds’ compliance with disclosure and distribution obligations. Submissions responding to the discussion paper questions are due by 5pm on 28 April 2025.

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