JPMorgan, Citigroup Launch Private Company Research Coverage

JPMorgan Chase and Citigroup are extending formal equity research coverage to large private companies for the first time.

JPMorgan moved first with its 24-page initiation on OpenAI released last week. In an external note, head of global research Hussein Malik wrote, “Private companies are increasingly pivotal in shaping the growth and outlook of industries,” adding that “Understanding their impact is and will remain crucial for both public and private market investors to make informed investment decisions.”

A separate internal memo noted that coverage will exclude ratings, targets, and earnings estimates, focusing instead on “structured information and tracking.”

Citigroup followed days later, hiring former Goldman Sachs and Third Point analyst Heath Terry to lead coverage of the heavily private artificial-intelligence sector and to embed private-company work across existing teams.

“This is one of, if not the single biggest, structural changes in our markets over the last 10, 15 years,” Terry said. “This is just table stakes of being a research analyst in 2025.” Research chief Lucy Baldwin added, “The number of VC- and PE-backed companies is up massively compared to what’s in the public arena.”

Terry framed Citi’s approach as a return to fundamentals: “This is really going to be covering those companies at a granular level — when they have product launches, winning customers, adding a new product line,” he said. “We’re going to be reacting to it in the same way we would with public companies we cover, because it’s going to have an impact on the public companies.” The same logic applies to access; as Terry noted, “For private companies that actually need to raise money, having a bigger profile with investors is pretty important, too.”

Citigroup has identified about 100 priority names, largely in AI and aerospace, with consumer platforms such as Shein and Stripe also on the list. Notes will be event-driven, mirroring private fund-raising and product cycles.

Over time, analysts expect management calls and teach-ins, effectively stretching the pre-IPO marketing rhythm across a longer private life.

Most of the early research is limited to the large VC-backed startups that are staying private for longer, rather than mature private equity-backed platforms. That may change as such deals become more accessible through avenues like retail-focused funds and individual 401(k) plans.

This seems likely to happen sooner rather than later — news broke last week that the Trump administration is finalizing an executive order to allow alternative asset investments in retirement plans, the latest win for sponsors who have placed heavy emphasis on individual investor fundraising in recent years.

One possible outcome is an increase in selective portfolio company disclosures or access to management for research analysts. Sponsors value status quo privacy for a host of reasons, but in a world where private capital is increasingly accessible to retail, it’s not a stretch to think that firms with more robust research coverage across the portfolio might have an easier time attracting capital.