Citi has announced an expansion of its research division to include private companies, with a particular emphasis on the technology and artificial intelligence (AI) sectors. This strategic move aims to complement Citi’s existing public company research by providing insights into private firms, which are increasingly influential in today’s financial landscape.
Lucy Baldwin, Citi’s Head of Research, stated, “This investment and commitment underlines Citi’s focus on complementing our existing market leading public company research with access and commentary on private companies.” The initiative will be spearheaded by Heath Terry, a former executive at Goldman Sachs, who has joined Citi as Head of Technology and Communications Research.
The decision to expand into private company research reflects a broader shift towards private markets over the past decade. Citi plans to focus on approximately 100 large and influential private firms, primarily within the tech sector. The research will cover significant events such as product launches and customer acquisitions, employing fundamental research methods including direct engagement with stakeholders.
Citi’s approach will not include price targets or buy/sell recommendations for these private entities. Instead, the research aims to provide transparency and insights into how these firms might disrupt existing profit pools and which companies could emerge as market leaders.
This expansion comes as Citi continues to enhance its research capabilities, having recently been named Best Bank for Research by Euromoney. The initiative underscores the growing importance of private companies in shaping the future of various industries, particularly in technology and AI.
“`
