Commentary

The Quiet Retrenchment of Private Capital in Emerging Markets

As rates stay higher for longer, the flow of venture and equity into secondary hubs is drying up.

By Marcus Thorne9 min read

As central banks pivot toward sustained higher rates, the once-buoyant flow of venture and equity into secondary hubs is drying up, leaving a structural vacuum that state actors are rushing to fill.

The shift is most visible in deal counts below the $25M threshold, where year-over-year volume is down by more than half.

MT
Marcus Thorne

Chief Economics Correspondent

Marcus covers global macroeconomics and central bank policy. Previously a senior economist at a sovereign wealth fund.

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