ASIC Offers Interim Updates on the Future of Australia's Private Markets

Australian private markets are growing while public markets have been in decline. 

Here, we take a look at where private markets currently stand — and where they’re heading.

What Do We Know?

Private markets are growing fast — currently valued at approximately AU$205 billion, which represents around 17% of the country’s commercial real estate debt. Meanwhile, initial public offerings (IPO) activity has slowed.

ASIC has acknowledged that market dynamics are shifting, and there is widespread concern about the implications. While it doesn’t have the data needed to track the risks properly, ASIC acknowledges that this is part of a broader global trend. However, unlike anywhere else around the world, Australia’s superannuation system plays a significant role in shaping how the story unfolds locally.

During the June Symposium on Australia’s public and private markets held on June 10, 2025, there was a consensus among panellists that public markets do not require further regulation. Interestingly, on the same day as the Symposium, ASIC announced changes to fast-track IPOs on the Australian Securities Exchange.

ASIC has identified that private market offerings are increasingly targeting retail and less sophisticated wholesale investors, requiring closer regulatory scrutiny, particularly in the private credit sector. While the regulatory framework is generally sound, there may be room for targeted uplift and more active and ongoing monitoring and supervision. 

We know that through ASIC’s current review and surveillance activity on private credit funds, they are focusing on: 

• Governance structures.
• Valuation practices. 
• Conflicts of interest.
• Investor protection measures (such as disclosure, distribution and conduct practices).
• Use of ratings.

ASIC has first focused on private credit funds raising money from wholesale investors. Their focus will shift to private credit funds raising money from retail investors. While ASIC’s attention has been on private credit funds, we anticipate ASIC will also review valuations and disclosure practices within broader private markets investments.

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What Reforms Are in the Pipeline?

Several reforms will likely take place over the next 12 months that will impact Australia’s broader private capital markets: 

• Merger reforms: New mandatory merger notifications and higher deal approval costs.
• FIRB: Tighter foreign property rules and increased investment application fees.
• Climate reporting: Large entities must publicly report climate risks from 2025.
• Privacy, data and security: Tougher privacy and security laws are introduced to achieve cyber resilience, along with more severe penalties.
• Tax: ATO targets private and venture capital, R&D impacts and foreign resident capital gains.
• AML/CTF reforms: More industries added to anti-money laundering compliance requirements, and an overhaul of current documentation requirements.
• Licensing: Delayed AFSL exemptions for foreign financial service providers and closer scrutiny of authorised representative arrangements and how they work.

What’s Next?

In Quarter 3 2025, ASIC expects to release its roadmap for strengthening public markets. Following that, in Quarter 4 2025, it will release the roadmap for private markets reforms, focusing on valuations, disclosures and surveillance outcomes.

In the Meantime, Private Market Fund Managers Should:

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• Review governance and valuation frameworks now.
• Monitor ASIC’s upcoming guidance and Q3/Q4 announcements.
• Prepare for potential disclosure and compliance obligations.
• Factor superannuation trends into capital allocation decisions.

If you are an institutional investor in private market funds, ensure you have appropriate processes and procedures for your investment decisions and onboarding and ongoing monitoring procedures. Ensure these adequately interact with any applicable broader statutory duties.

Need Legal Support Navigating the Upcoming Shifts?

Australia’s private markets are under the regulatory scope. PMC Legal is already working with clients to prepare for this shifting regulatory landscape. 

If you need a practical view of how these reforms impact your governance frameworks, fundraising or disclosure obligations, contact us today.

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