JPMorgan Expands Research Coverage To Private Market Giants As C Accelerates

JPMorgan Chase

238.61 CHF 0.27%

• Charts
• News
• Analysen

Kaufen Verkaufen

(RTTNews) - JPMorgan Chase & Co. (JPM) has begun publishing research reports on leading private companies, marking a strategic shift as these firms wield growing influence over global markets, a source told Reuters on Friday.

The bank's first note focuses on OpenAI, the ChatGPT creator that ignited Wall Street's AI frenzy with a valuation surpassing $27?billion.

As IPO timelines stretch and private market valuations rival those of S&P?500 companies, institutional investors are seeking earlier insights into disruptors like SpaceX and TikTok parent ByteDance. In an internal memo, JPMorgan's head of global research, Hussein Malik, said the reports will provide structured analysis and market tracking but will exclude ratings and price targets. "Private companies are increasingly shaping industries, particularly in the new economy space," Malik wrote.

The timing reflects explosive growth in private markets. North America alone hosts over 1,000 unicorn startups valued above $1?billion worth nearly $4?trillion collectively, according to PitchBook. Private capital markets, spanning venture and private equity, reached $18.7?trillion last year and are projected to hit $24?trillion by 2029.

The median age of companies going public has climbed from 6.9 years a decade ago to 10.7 years today, fueled by deep pools of private funding. Malik emphasized that understanding these firms' impact is now critical for both public and private market investors.

JPMorgan's move aligns with CEO Jamie Dimon's warning about the shrinking role of public companies, which have declined from 7,300 in 1996 to roughly 4,300 today. By spotlighting private market disruptors, the bank aims to bridge a growing information gap reshaping how Wall Street evaluates the next wave of market leaders.