MS to Expand Private Firms Coverage Amid High-Growth Startup Interest

Core Insights - Morgan Stanley has launched a dedicated page for private company research to cater to the growing interest in rapidly expanding startups among investors [1][10] Group 1: Rationale Behind the Move - Private companies have gained attention as their scale increases, particularly due to the artificial intelligence (AI) boom, which has made it difficult for investors to overlook these entities [2] - Institutional investors are diversifying their portfolios by shifting to private markets, seeking higher returns from privately listed firms that are developing disruptive products and technologies [3] Group 2: Expansion of Research Coverage - Katy Huberty, global director of Research at Morgan Stanley, emphasized the expansion of private company coverage to provide deeper analysis and meet client demand, noting that private companies have been fundamental to research [4] - Other major banks, including JPMorgan and Citigroup, are also expanding their research on private firms, focusing on influential startups like OpenAI and SpaceX [6][7] Group 3: Strategic Moves - Morgan Stanley's initiative aligns with its strategy to enhance private market offerings and increase revenues, which includes the recent agreement to acquire EquityZen, a private shares platform [5][10] - Over the past six months, Morgan Stanley's shares have outperformed the industry, gaining 28.7% compared to the industry's 22.7% growth [9]