TLDR: Citi has announced a significant expansion of its research services to cover private companies, a strategic move aimed at addressing the growing influence of private markets. The initiative, led by new hire Heath Terry, will focus on approximately 100 large and impactful private firms, particularly within the technology and artificial intelligence sectors. This expansion seeks to provide deeper insights into market disruptions and identify future industry leaders.
Citi is making a strategic move to broaden its research capabilities by extending coverage to private companies, a development announced on August 2, 2025. This expansion is designed to complement Citi’s established public company research, providing clients with enhanced access and commentary on the increasingly influential private market landscape. Lucy Baldwin, Citi’s head of research, stated, ‘This investment and commitment underlines Citi’s focus on complimenting our existing market leading public company research with access and commentary on private companies.’
The initiative is spearheaded by Heath Terry, a notable addition to Citi’s team, who previously held positions at Goldman Sachs and other prominent firms. Terry has been appointed as the head of technology and communications research, with a specific mandate to lead coverage of the artificial intelligence (AI) sector and guide private firm research across various industries. This focus underscores the bank’s recognition of the escalating prevalence of private companies, particularly in critical sectors like AI, and the growing demand for greater financial transparency within venture capital and private equity.
Citi acknowledges the shift towards private markets as a profound structural change in the financial landscape over the past 10 to 15 years. The bank’s objective is to identify how different profit pools will be disrupted and to pinpoint which companies, whether private or public, are poised to emerge as winners or losers in this evolving environment. The research will concentrate on approximately 100 large and influential private firms, with a primary emphasis on the technology sector.
Research reports will be published when these private firms undertake actions relevant to broader markets, such as product launches, significant customer acquisitions, or the introduction of new product lines, mirroring the comprehensive coverage provided for public companies. Citi will employ fundamental research methods, including direct engagement with customers, vendors, and partners, to gather insights. The bank also plans to access management teams at these private firms, recognizing the incentive for these companies to build a profile with investors for future fundraising endeavors. However, it is important to note that Citi will not be releasing price targets, buy/sell recommendations, or earnings expectations for its private company coverage.
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This strategic expansion by Citi aligns with similar moves observed in the financial industry, such as JPMorgan Chase reportedly beginning to cover non-listed firms. The increasing valuations of private entities, including prominent names like OpenAI, SpaceX, and TikTok-parent Bytedance, which now rival or even surpass many major S&P 500 firms, highlight the blurring distinction between public and private market influence and the necessity for comprehensive research in this dynamic sector.
