This interesting article that addresses some of the reasons behind the shift in investor focus from public markets towards private markets, as witnessed by the huge inflows towards private capital over the last 10 years.
A few key themes point towards public markets facing underlying structural problems with increasing regulatory burden that you don't see in private markets. At the same time, private markets have become more sophisticated, offer greater investment dexterity, greater returns and a degree of financial flexibility. This is also supported by the ability to retain and attract top talent with private markets companies capacity to hire high quality individuals that can earn more working for companies in private markets over public.
Public markets are shrinking while private markets are attracting huge amounts of capital. But it is still not clear which is the better bet The publicly listed equity markets, in theory at least, are dependent on private small-cap companies. Such firms represent the cutting edge of capitalism as they eventually list in public markets to form the seed corn for larger firms to emerge. But over the past decade or two there has been a dramatic shift towards private markets that raises questions about the rationale for public markets. Private and public equity markets have long been seen as two distinct asset classes with different types of investment managers acting in them. Yet whether a company is listed or not might not necessarily have any bearing on its risk and reward characteristics.