Citi's New Research Sets Focus on «Invisible Giants»
US banking giant Citi is expanding its research division to cover private companies, starting with some of the largest names in tech and AI.
Citi’s latest investment underscores its ambition to complement its public company research with cutting-edge insights on private market players. «This investment and commitment underlines the bank's focus on complementing our existing market-leading public company research with access and commentary on private companies,» said Lucy Baldwin, Citi’s Head of Research.
At the center of this push is Heath Terry, a seasoned analyst with prior tenures at Goldman Sachs and other prestigious institutions. Terry has joined Citi as Head of Technology and Communications Research and will spearhead coverage of the booming AI sector while guiding the firm’s approach to private company analysis across all industries.
Private Markets Take Center Stage
The decision comes at a time when private companies, not listed on public exchanges, are increasingly pivotal in sectors like AI, fintech, and biotech. Many of today’s most disruptive innovations happen within firms backed by venture capital and private equity, far from the regulatory spotlight of public markets.
Recognizing this trend, Citi views the rise of private markets as a fundamental structural shift in the global economy. Over the past decade, private firms have absorbed a growing share of capital, talent, and technological advancement, challenging traditional models of financial research.
Tracking Tomorrow’s Market Movers
Rather than spread itself thin, Citi plans to focus its new research efforts on around 100 of the most influential private firms, especially in tech. The firm will publish analysis when these companies take actions that could ripple across public markets, such as major product launches, landmark customer deals, or strategic pivots.
Citi will deploy the same rigorous, fundamentals-based methods it applies to public company research. This includes direct engagement with customers, vendors, and partners to understand how these firms operate and influence broader market dynamics.
Building Bridges Between Capital and Innovation
Access to private company leadership remains a key pillar of Citi’s strategy. Private firms, often on the lookout for future funding rounds, are incentivized to engage with institutional investors and benefit from the visibility such research provides.
However, Citi’s coverage won’t mimic sell-side public research entirely. There will be no price targets, buy/sell recommendations, or earnings forecasts. Instead, the emphasis is on strategic insight, helping investors understand who the real players are, where disruption is brewing, and how capital might flow in the next era of innovation.
Mapping the Invisible Giants
With this initiative, Citi is effectively mapping the financial world’s «invisible giants», private firms that wield market-moving power without the public exposure. For investors trying to navigate a fast-evolving, increasingly private financial ecosystem, Citi’s expanded research aims to provide a long-overdue compass.
