How private markets are redefining capital in America

For decades, the U.S. financial system was shaped by public markets and regulated banks. But a seismic shift has taken place. Over the past twenty years, U.S. debt and equity markets have ballooned by 185%, dramatically outpacing global GDP growth of 88%. This reflects a profound turn toward financialization where the tools of finance increasingly drive capital access.

This trend isn't confined to Wall Street. It’s showing up in places that directly affect how Americans live, work, and build wealth. Nowhere is this clearer than in the housing market. In 2007, traditional banks were still the dominant force in mortgage lending. But by 2024, that dominance had flipped. Nonbank lenders, often fintech platforms or private credit firms, now account for a staggering 75% of all mortgage originations, up from just 12%. For the average homebuyer, the shift means faster decisions and more digital-first services, but also greater variability in oversight, risk models, and long-term protections.

An Interview with a financial expert in Africa reveals the trend toward private markets and nonbank lending is increasing in Nigeria and across Africa. Private equity and alternative lenders are stepping in where traditional banks hesitate, whether due to regulatory barriers or risk aversion. “Startups and SMEs are benefiting from this shift”

The private equity explosion and its hidden costs

Meanwhile, the nature of American businesses is changing as well. In a single generation, the number of private equity-backed companies more than doubled from 4,900 to 11,800 while the number of public companies declined. This matters because the companies we interact with every day whether as customers or employees are increasingly owned by private capital. These firms often aren’t subject to the same disclosure requirements or public scrutiny. Instead, they answer to investors behind closed doors, many of whom are focused on operational efficiency, rapid returns, and exit strategies.

Private ownership can mean agility, speed, and a laser focus on profit. But it also introduces new tensions. Customer service may take a backseat to cost-cutting. Employee benefits might shrink under the pressure to boost EBITDA and innovation may tilt toward near-term monetization rather than long-term value creation.

For businesses in Africa, our financial respondent frames a tough choice: “Founders must weigh the agility of private capital against long-term brand and culture impact.

As the McKinsey Global Private Markets Report notes, the private capital industry has ballooned to $13.1 trillion globally, with private credit alone nearing $1.7 trillion. And now, amid higher interest rates and slowing growth, that balloon is being tested. Firms built on cheap leverage are facing their first real stress test since the 2008 financial crisis. The question is no longer whether private credit is powerful, it’s whether it’s resilient. This raises big strategic questions for executives: How should your business approach capital in this new era?

Our respondent highlights a stark reality: “Many of these graduates are digitally savvy and entrepreneurial, but they lack visibility. Private financiers won’t fund what they can’t see.”

This is why Rwazi’s microdata especially on informal markets, digital consumer habits and youth-driven commerce can unlock new capital pathways. “Imagine lenders trusting verified Rwazi data to tailor microloans or equity stakes for small youth-led enterprises. That could shift thousands of lives,”

Navigating the Shift

For business leaders in emerging markets, private capital offers speed and flexibility, but that only works in your favor if you’re ready. Discipline, transparency, and access to local data aren’t optional; they’re what turn interest into investment. Platforms like Rwazi can help founders build the data story that investors trust grounded in real demand, consumer behavior, and market signals.

For investors, especially those expanding into frontier markets, robust local data is now a non-negotiable. Traditional models won’t capture on-the-ground realities. Rwazi provides the visibility needed to make informed bets tracking spending patterns, brand trust, and operational risk at the street level.

With private markets ascendant, data is the new democratizer. Platforms like Rwazi don’t just inform, they empower.