JPMorgan Chase is breaking new ground by launching equity research on private companies, beginning with OpenAI. This shift illustrates the increasing influence of private firms in today’s financial landscape, prompting Wall Street to adapt. Hussein Malik, head of global research at JPMorgan, noted that clients are showing heightened interest in private companies, which are becoming vital in various sectors, especially in emerging economies. The median age for private companies going public has risen from 6.9 to 10.7 years, largely due to increased funding from private equity and venture capital. Currently, there are approximately 1,200 US unicorns, a significant rise from prior years. Jamie Dimon has expressed concern over the decline of publicly traded companies, noting that their numbers have dropped from 7,300 in 1996 to 4,300 today. Understanding private markets is essential for informed investment decisions in both public and private sectors, highlighting the dynamic shifts in the financial landscape.
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