Kind of a disvirtuous cycle isnt it? More income inequality means fewer people have more money. If you need to fundraise it would be preferable to raise from fewer than more - lower transaction costs and oversight. These private individuals then capture more and more of the growth becoming further enriched.

At some point though it seems like it would backfire. If wealth is sufficiently concentrated than those individuals could effectively dictate terms, possibly even colluding with others. Then the pendulum swings back the other way, it may be more cost effective to go to public markets as crazy as that sounds.

Or maybe we just need a few huge flame outs to cause private investors to retreat.