The number of companies on our stock exchanges is declining, as big, privately run funds take over established companies and increasingly provide capital for new startups.

Even when it comes to borrowing, there is a growing trend to avoid the middleman by bypassing the banks in favour of raising money directly from well-healed lenders.

While public investment markets such as stock exchanges still tower over private players, and our big banks dominate the lending landscape, the shifts are unmistakable.

According to ASIC chair Joe Longo, key risks around conflicts of interest, uncertainty over valuations, liquidity and debt levels are emerging as private financing becomes more prominent.

But, given it is so far mostly well-funded investors participating in this trend, what — if anything — should be done?

“The critical point is understanding whether there is a need for intervention …” he says.

“Whether it is for ASIC or another regulator to consider, or whether we leave the market and wholesale investors to their own devices.”

That last option looks increasingly unlikely.