JP MORGAN CHASE(US:JPM) Xin Lang Cai Jing·2026-01-16 13:55Core Viewpoint - JPMorgan Chase is forming a new team within its investment banking division to assist companies in raising private capital as an alternative to going public, indicating a belief that the private market will remain dominant despite anticipated large IPOs later this year [1][5] Specific Details - The public equity market has changed significantly, with a general decline in IPOs and more companies opting to raise funds from large investors while remaining private. Private equity firms are holding onto their portfolio companies longer, often transferring them to new "secondary" funds instead of selling to another company. Institutional investors are closely monitoring the private market and have raised substantial funds for investment [2][6] - JPMorgan believes that the structural shift in how companies choose to raise funds has occurred, with private markets overshadowing public markets. Keith Canton, co-head of Americas Equity Capital Markets, noted that historically, IPOs or sales were the only exit strategies, but there are now many more options available [2][6] - The new team, named "Private Capital Advisory and Solutions," will be a hybrid team that collaborates with the capital markets department while providing M&A advisory services. The team plans to connect companies seeking private capital with investors and will advise clients on raising early equity, preferred stock, and convertible debt [2][6] Background - Some of the largest and most valuable companies in the U.S. are private. A notable upcoming stock sale is OpenAI's $40 billion offering in 2025, which will only be available to a select group of investors chosen by the company's executives [4][8] - To cater to this growing segment, JPMorgan has been developing a private credit program, and its investment banking research team is now covering private companies. These initiatives aim to ensure the bank maintains relationships with these companies, which are less reliant on large banks for fundraising compared to public companies [4][8] - The expansion of the private market has sparked calls for a revival of the public market, including from SEC Chairman Paul Atkins. Observers warn that the growth of the private market means that only those with wealth and investment channels will benefit [4][8] - Jamie Dimon, CEO of JPMorgan, has criticized the growth of the private market, blaming regulators for high listing costs and suggesting that management of these companies has become difficult due to advisory firms focusing too much on short-term financial performance [4][8][9]