Private Capital Formation Hits All-Time High in US

It’s no surprise that private capital formation has outpaced public market fundraising since the financial crisis. New layers of financial regulations make unregistered securities more attractive, and the general trend toward private wealth continues.

A new report from the U.S. Securities and Exchange Commission released before the government shutdown confirms as much and more. The report analyzes private capital formation between 2009 and 2017, specifically looking at non-publicly traded securities offered by issuers relying on Regulation D of the federal Securities Act. The vast majority of private capital is raised in the Reg D market, including by real estate syndicators and operators who conduct so-called “private placements” to secure equity and debt.