Amid growing investor interest in unlisted startups, Morgan Stanley (MS) is rolling out a research solution targeting private companies, according to a media report on Tuesday.
The new product will provide detailed coverage of private firms, venture capital trends, and their wider impact on traditional industries, Bloomberg reported, citing an internal memo.
The investment bank is joining Wall Street peers like JPMorgan (JPM) and Citigroup (C) in providing private-company analyst coverage. JPMorgan, for instance, was said to have published reports on five high-profile private firms since July, including OpenAI (OPENAI) and Stripe (STRIP).
“Now more than ever, it’s critical and a strategic imperative to focus on private-company coverage,” Katy Huberty, global director of research at Morgan Stanley, told Bloomberg in an interview. “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.”
Private companies used to receive little attention from Wall Street analysts because they aren’t publicly traded, so they don’t disclose financials regularly.