Morgan Stanley launched a private company research page to cater to investor interest in high-growth startups. Other Wall Street giants like JPMorgan and Citigroup have also started covering private companies. This shift is due to the growing importance of privately held companies like OpenAI and SpaceX, which are staying private longer.

Morgan Stanley’s Global Director of Research, Katy Huberty, stated that they are expanding private company coverage to meet client demand. Private companies, once overlooked, are now hard to ignore due to their significant scale and impact on industries. The AI boom, exemplified by OpenAI’s $500 billion valuation, is a key driver of this trend.

Institutional investors are increasingly turning to private markets where emerging companies are disrupting industry leaders. Morgan Stanley recently acquired private shares platform EquityZen, while Charles Schwab bought Forge Global for $660 million. Huberty emphasized the importance of private companies in research and the growing client interest in these markets.

As of October 1, there were over 1,500 active unicorns globally, valued at $1 billion or more, raising approximately $1 trillion in venture capital funding. This data underscores the significant presence and impact of private companies in today’s market.

Read more at Yahoo Finance: Morgan Stanley joins rivals in rolling out private company research, memo shows