JPMorgan pushes into private company coverage as Wall Street eyes growing opportunity

• JPMorgan said on Friday that research analysts will start covering private companies.

• This transformation comes amid the contraction of subscriptions, the growing opportunities, and the influence in the private sector.

• The company’s first company’s special research report focused on the Chatgpt Openai maker.

JPMorgan Chase does something that has not been done before: publishing stock research on a private company.

The bank exceeds conventional shares and starts with Openai – a step that reflects how private private companies have become in today’s markets, and how Wall Street is trying to keep up with it.

“This new offer aims to expand our coverage and research in private companies, as we continue to see the increasing impact and attention from our customers,” said Hussein Malik, the bank’s global research head, in an internal note. The memo, which was mentioned earlier by Bloomberg, said: “The most important thing is that private companies are increasingly relevant to various industries, especially in the field of the new economy,” said the memo, which was mentioned earlier by Bloomberg.

The move comes at a time when the founders of corporate and paintings choose to remain special for a longer period. The average age of a private company that operates publicly from 6.9 years ago a decade ago to 10.7 years today, according to Morningsar.

One of the main factors behind the decline is to increase the financing of companies such as Openai and Spacex, which is fueled by the rise of private stocks and investment capital. Pitchbook estimates that there are $ 18.7 trillion assets in private markets, including investment capital and private stocks – a number that will reach $ 24 trillion by the end of 2029.

Malik said in a separate memo to customers: “With nearly 1,200 private companies in the United States, the rhinoceros is achieved between 2020 and 2023 – a noticeable increase from about 330 between 2016 and 2019 – its increasing impact on the economy and markets is clear.”

Malik said that understanding private markets is now a key to evaluating companies circulating properly.

He added: “Understanding its impact and will remain decisive to investors in the public and private market to take informed investment decisions.”

Jimmy Damon has long expressed his regret for what he called “the decreasing role of companies circulating in the American financial system.” In the 2023 message to investors, he said that the number of American public companies decreased to 4,300 from the height of 7300 in 1996.

He said at that time, “This trend is dangerous and it may increase well,” before he asked, “Is this the result we want?”

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