Citi embarks on an extension of its operations into the realm of private sector research
Citi Expands Research Focus on Private Companies, Particularly in AI and Advanced Technologies
In a strategic move to adapt to the changing financial landscape, Citigroup is broadening its research focus to include around 100 large, fast-growing private firms, primarily in the AI sector and other advanced technologies such as aerospace and cloud computing.
This expansion comes in response to the declining number of public companies and the increasing dominance of private tech firms with high valuations, often supported by venture capital and private equity.
Heath Terry, an experienced analyst from Goldman Sachs and other firms, has been appointed to lead the research on the private AI sector and guide other analysts across industries. Unlike traditional public company research, Citi’s approach for private companies involves fundamental analysis through direct engagement with customers, vendors, and partners.
Terry's role will involve tracking key performance indicators like product launches, customer acquisition, and R&D spending, mirroring metrics used for public companies, though without issuing target prices or buy/sell recommendations.
Citi's decision to delve into private company research places it alongside competitors like JPMorgan, which has begun similar coverage on private firms including AI companies such as OpenAI. This move acknowledges a major structural market shift over the past 10-15 years and aims to provide investors with a clearer lens on disruptive innovation and profit pool dynamics within private markets.
The bank will publish research when these 100 firms undertake actions relevant to broader markets. The research will include coverage of product launches, customer acquisitions, and new product lines. However, Citi will not release price targets, buy/sell recommendations, or earnings expectations for private company coverage.
Instead, the bank aims to identify how different profit pools will be disrupted and which companies, private or public, may emerge as winners or losers.
In addition to this, Citi will maintain access to management teams at private firms, emphasizing the potential for these companies to build a profile with investors for future fundraising.
Meanwhile, Citi Vietnam has announced a leadership transition in Vietnam, with Ramachandran AS returning to London to pursue other opportunities.
Moreover, Citi Vietnam holds annual blood drive events in both Hanoi and Ho Chi Minh City during Vietnam's National Blood Donation Month. The bank's services are also enhancing client experience with its CitiService Agent Assist, a generative AI-powered solution designed to help customer service agents deliver faster, more accurate responses to clients.
[1] Bloomberg: "Citi to Study 100 Private Firms as Tech Firms Shift to Private Markets" [2] Financial Times: "Citi to Focus on Private Tech Firms as Public Listings Decline" [4] Reuters: "Citi to Boost Research on Private Companies in Response to Shift to Private Markets"
In the context of adapting to the increasing dominance of private tech firms, Citi is expanding its research focus to include around 100 large, fast-growing private firms, primarily in AI and advanced technologies like aerospace and cloud computing (Business and Technology).
Heath Terry, an experienced analyst from Goldman Sachs and other firms, has been appointed to lead this research, focusing on the private AI sector and guiding other analysts across industries (Finance).
