Citi expands research operations into private businesses
In a significant move, Citi, a leading global bank, has announced an expansion of its research division to focus on the analysis and monitoring of approximately 100 large and influential private tech firms, particularly those focused on artificial intelligence (AI). This strategic shift reflects the increasing prevalence and influence of private companies, especially AI startups valued at $1 billion or more, in shaping the competitive landscape and profit pools in technology sectors.
The head of research at Citi, Lucy Baldwin, stated that this investment and commitment will help complement Citi's existing market-leading public company research with access and commentary on private companies. The coverage of private companies will utilize fundamental research methods, including direct engagement with customers, vendors, and partners.
Heath Terry, an industry veteran with experience at Goldman Sachs and other prominent firms, has joined Citi as the head of technology and communications research. He will lead coverage of the AI sector and guide private firm research across industries. Terry emphasizes this shift as a fundamental structural change in markets over the past decade, making private company coverage essential for comprehensive research in 2025.
Citi's research on private companies will include coverage of product launches, customer acquisitions, and new product lines. However, the bank does not plan to release price targets, buy/sell recommendations, or earnings expectations for private company coverage. Instead, Citi aims to publish research when these firms undertake actions relevant to broader markets.
The bank will concentrate on approximately 100 large and influential private firms, primarily in the tech sector. Citi recognizes the shift towards private markets as a significant structural change in the financial landscape over the past 10-15 years and aims to identify how different profit pools will be disrupted and which companies, private or public, may emerge as winners or losers.
Citi is also enhancing client experience with its award-winning CitiService Agent Assist, a generative AI-powered solution. Meanwhile, Ramachandran AS, Citi's country officer and banking head for Citi Vietnam and Citibank Ho Chi Minh City's general director, has decided to return to London to pursue other opportunities.
In other news, Citi Vietnam held events in Hanoi and Ho Chi Minh City on June 20 to support Vietnam's National Blood Donation Month. The events aimed to encourage blood donations and raise awareness about the importance of this act in saving lives.
This strategic move by Citi underscores the bank's commitment to staying at the forefront of industry transformation, aligning with its wider AI-led institutional transformation under CEO Jane Fraser. By integrating private company research into its broader AI strategy, Citi aims to provide strategic clarity and top-down urgency to its clients in navigating the rapidly evolving tech landscape.
Lucy Baldwin, the head of research at Citi, mentioned that the bank's investment in private company research will help complement its existing business operations by providing access and commentary on private tech firms, especially those focused on artificial intelligence. Heath Terry, the new head of technology and communications research at Citi, stressed that this shift toward private company coverage is a fundamental structural change in the technology sectors, and is essential for comprehensive research in 2025.
