Private markets are undergoing a significant transformation as companies around the world choose to remain private for longer. This shift reflects a desire for greater strategic control and the ability to focus on long term value creation without the short-term demands that characterise public markets. For many high growth companies, remaining private has become a deliberate choice that supports sustainable expansion, disciplined governance and further alignment with investors and employees.
As more companies progress through substantial stages of their growth journey (while still being privately held) interest in secondary transactions has accelerated. BlackRock’s Secondaries: FY2024 Market Recap & Outlook shows that global secondary market volume increased by 45 percent in 2024 and reached a total volume of approximately AUD 260 billion dollars. This increase highlights not only the maturation of private markets, but also the growing recognition that well designed liquidity solutions can support companies in tailoring their ownership structure to better support long-term growth rather than short term returns. This growth trajectory is expected to continue across private markets as investors turn their mind to alternative assets. The estimated value of global private capital fund AUM in June 2024 was US$14.6 trillion, and some estimates suggest private markets could reach US$21 trillion in AUM by 2030 (Preqin).
The trend is equally visible in Australia. Many founders, early employees and investors are seeking new ways to access capital and diversify their holdings while still supporting the companies they helped to build. According to Fortune, this trend is reflected in the fact that Australia ranked third globally in 2024 for total liquidity generated from venture-backed M&A and IPO outcomes over the past decade, highlighting the growing demand for earlier access to capital and secondary liquidity. Capital Brief reported in December 2025 that SecondQuarter Ventures expects approximately 4 billion Australian dollars in secondary demand from Australia and New Zealand during the next three years. This level of activity reflects a broader shift in how private company shareholders think about liquidity. It is no longer seen as an event that forces a company to go public. Instead, liquidity is increasingly viewed as a financial tool that can be used responsibly throughout the private company lifecycle.
Even within publicly traded markets, liquidity can be inconsistent. An analysis by Mandala Partners in its 2025 publication Diverse Alternative Infrastructure for Competitive Australian Capital Markets revealed that in 2024, 11 percent of non ASX 200 securities experienced at least one trading day where the trade volume for that single day accounted for more than 20 percent of the total trade volume recorded for the entire year. This pattern demonstrates that small cap liquidity often remains event driven, concentrated around announcements, reporting seasons and market‑moving news. As a result, trading activity can deviate from what could be defined as ‘fundamental value’ and create volatility that does not always reflect a company’s true performance.
These observations raise an important point for private companies. If even listed small caps experience inconsistent liquidity, private companies must think carefully about how they manage shareholder needs and long-term strategy. Liquidity, which is more controlled, strategically timed or both, can help resolve this challenge in a way that aligns interests rather than disrupts them.
Liquidity within alternative markets is evolving into a more sophisticated mechanism, with increased focus from regulators on newly developed alternative market infrastructure. For issuers, liquidity enables better alignment between investors by allowing capital to recycle to new investors whose investment thesis matches the company vision. It also helps support accurate pricing for future capital raises by creating observable market activity. In addition, it can also decrease the historical liquidity premium that private company investors have had to absorb.
Private market liquidity also provides a notable benefit for employees or private companies, as they’re able to realise the value of their Employee Share Ownership Plans (ESOPs), without the need to wait for an IPO or trade sale. Many employees commit years of effort to help build growing companies and structured liquidity events recognise that contribution in a tangible way.
For buyers, secondary markets present the opportunity to access new private assets at a time when traditional public market exposure may not provide comparable growth potential. Private markets in Australia have consistently shown strong long-term returns with the Australian Investment Council estimating a median IRR of 13.8% for Australian-focused funds of vintages between 2014 and 2021. Enhanced access to private markets makes the asset class more relevant for a wider range of investors.
Within this changing landscape, FCX seeks to play a meaningful leadership role. FCX provides a regulated liquidity venue operated under an Australian Market Licence granted by ASIC as well as a Clearing and Settlement Licence from the RBA. Through this structure, private companies and funds gain the ability to guide how liquidity is introduced to their shareholder base. They can define pricing, set transaction timeframes and frequency and determine who participates in each transaction. This level of control ensures that liquidity supports, rather than complicates, long term strategic objectives.
Professor Vito Mollica of Macquarie University captured a fundamental truth about market structure at an event FCX hosted in October last year when he noted that “liquidity begets liquidity.” Regular and well‑designed secondary liquidity events in private markets create precisely this dynamic. As more shareholders can transact with confidence, a broader range of investors begin to participate, including high‑net‑worth individuals, institutions and, increasingly, superannuation funds seeking long‑term exposure to high‑growth private companies. Cor Cordis reported that the value of private capital funds AUM has grown 161% from 2014-2024 (compared to 91% growth in the value of ASX listed entities). This growing diversity of capital not only deepens the pool of potential buyers and sellers but also reinforces a healthier and more resilient private‑market ecosystem. Over time, consistent liquidity strengthens valuation integrity, enhances market efficiency and supports the continued expansion of private markets as a credible and investible asset class.
FCX is part of FinClear, one of the largest ASX market participants, with a clearing and settlement licence and access to more than 1.4 million end-investor accounts. This reach and depth of experience allow FCX to introduce private companies and funds to a broad network of engaged investors who have demonstrated strong interest in high quality secondary opportunities. The combination of regulatory infrastructure, technology capability and distribution makes FCX a trusted partner for private companies that want to embrace liquidity while retaining control.
The evolution of private markets is reshaping how companies and funds grow, and how investors engage with the sector. Liquidity is no longer considered an end point that pushes a company toward public listing. It is increasingly viewed as a strategic resource that supports alignment, resilience and value creation across every stage of a company’s journey. FCX believes this evolution will continue and expand, with well governed liquidity solutions becoming a defining feature of Australia’s alternative market landscape.
Sources:
Henderson, J. (2024, September 11). Australia’s startup scene has delivered the 3rd-highest liquidity behind the U.S. and China, new analysis shows. Fortune.
Diverse alternative infrastructure for competitive Australian capital markets. (2025). Mandalapartners.com.
FY2024 Secondary Market Recap and Outlook | BlackRock. (2024). Blackrock.com.
Australia’s Evolving Capital Markets: A discussion paper on the dynamics between public and private markets. ASIC. (2025).
Clune, B. (2026, January 13). SecondQuarter targets Australia’s $12 billion liquidity gap with larger third fund. Capital Brief.
Australian Private Capital 2025 Yearbook: A Calm Port in a Wild Storm A collaboration between Preqin and the Australian Investment Council. (n.d.). Retrieved January 22, 2026, from Investment Council.
Private capital is booming in Australia – but is it reshaping the market for better or worse? . Cor Cordis. (2025). Corcordis.com.au.