Communication and transparency create trust which in turn creates liquidity.

One of the great benefits of public markets is that they enforce standards. If your reporting isn’t up to par, the SEC will come see you, and the penalties can be serious.

That accountability is what creates trust, and trust is what creates liquidity.

But, in private markets, that structure doesn’t exist yet.

Reporting is less standardized, information is harder to analyze, and diligence takes longer. If your reporting is poor, your investors might complain, but there’s no real consequence.

That’s the biggest difference between public and private markets today: governance and standardization.

But that’s starting to change.

AI is making it easier to process, verify, and share information, bringing transparency to a space that’s always been opaque.

Will private markets ever be as open as public ones? No, and they shouldn’t be.

They’ll always remain somewhat gated.

But the infrastructure will become more accessible, and information will move faster, cleaner, and more consistently.

Because at the end of the day, better information flow means better capital flow. If investors can trust the data, they can move faster, take smarter risks, and back managers with conviction.

And that’s what will unlock the next era of growth in private markets, not just more capital, but greater confidence to make investment decisions.