Morgan Stanley Launches Research Product for Private Firms
Morgan Stanley has recently introduced a dedicated research product focusing on private companies, aligning with other major financial institutions like JPMorgan and Citigroup as interest in unlisted startups continues to rise.
The bank unveiled a new section on its research portal dedicated to private-company content, aimed at highlighting innovators and trends reshaping traditional business models. This move is part of the bank’s strategic focus on private-company coverage, according to an internal memo obtained by Bloomberg News.
According to a spokesperson from Morgan Stanley, the new page will feature reports analyzing the impact of private companies on public-market competitors, research on individual companies, a series on venture-capital activities, and multimedia content.
Focus on Private Companies
Katy Huberty, Morgan Stanley’s global director of research, emphasized the importance of private-company coverage, stating that it is a strategic priority for the research department. The bank has already published over 100 reports on private firms since 2017, with more than 65 reports released this year alone.
As part of this initiative, two analysts at Morgan Stanley have shifted their focus from public companies to private firms. For example, Stephen Byrd, who previously analyzed the utilities sector, now covers companies supplying power to data centers. Similarly, Adam Jonas, known for his coverage of Tesla, now concentrates on companies integrating artificial intelligence into robotics and machines.
Huberty highlighted the establishment of central teams to enhance understanding of private markets at sector and thematic levels. These teams will support public-company analysts in expanding their coverage to include private firms.
Industry Trends
Morgan Stanley is not the only financial institution exploring private-company research. JPMorgan has released reports on several private companies in recent months, including OpenAI and Stripe. Citigroup has also bolstered its coverage of the private AI sector by hiring industry expert Heath Terry.
The growing interest in private companies stems from their increasing size and impact on the market. For example, OpenAI’s valuation of approximately $500 billion would place it among the top 20 companies in the S&P 500. According to PitchBook data, there are nearly 1,600 startups worldwide valued at $1 billion or more, with a combined value of around $6.5 trillion as of November 5.
Banks are expanding their corporate access offerings by including more private firms in investor conferences. Morgan Stanley’s recent Spark Private Company Conference featured leaders from 85 tech firms, marking a 35% increase from previous years. Additionally, the bank’s annual technology, media, and telecom conference saw a rise in private company participation.
In a significant move, Morgan Stanley acquired EquityZen in October, facilitating easier investment in private companies for clients of its wealth management division.
For more information, you can read the original article here.
