Morgan Stanley has launched a dedicated research product covering private companies, joining rivals such as JPMorgan Chase and Citigroup amid growing investor interest in unlisted startups.
The bank this week opened a page for private-company content on its research portal, which “will spotlight the innovators and trends that are reshaping traditional business paradigms,” according to an internal memo seen by Bloomberg.
The page will feature reports on private companies’ impact on public-market competitors, research on individual firms, a series on venture capital activity, and multimedia content.
Katy Huberty, Morgan Stanley’s Global Director of Research, said in an interview:
“Now more than ever, it’s critical and a strategic imperative to focus on private-company coverage. Our private strategy, along with expanding thematic leadership, are our top priorities for the research department next year, and we are hiring on the back of both of those priorities.”
Since 2017, the bank has published over 100 reports on private companies, with more than 65 issued this year.
Two analysts who previously covered public firms have now shifted focus: Stephen Byrd, formerly a utilities analyst, now covers companies powering data centres, while Adam Jonas, long-time Tesla analyst, now tracks firms embedding artificial intelligence in robotics, including Saronic Technologies and 1X Technologies.
Huberty added that centralised teams are being built to analyse private markets from sectoral and thematic perspectives, supporting public-company analysts in expanding coverage to private firms.
Other banks are also increasing private-company coverage.
JPMorgan has published reports on five private companies since July, including OpenAI and Stripe while Citigroup hired Heath Terry from Balyasny Asset Management to lead coverage of the private AI sector.
Previously overlooked due to limited financial disclosure, many private firms have grown too large to ignore.
OpenAI’s estimated US$500 billion valuation would rank it among the top 20 S&P 500 companies.
Globally, PitchBook data shows nearly 1,600 startups valued at US$1 billion or more, with a combined value of roughly US$6.5 trillion as of 5 November, up 22% from the end of last year.
Banks are also expanding investor access to private firms.
Morgan Stanley’s Spark Private Company Conference this year featured 85 tech leaders, up 35% from 2024, while its annual technology, media and telecom conference included 58 private companies, compared with 39 in 2021.
In October, the bank agreed to acquire EquityZen, facilitating wealth clients’ investment in private companies.
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