The line between “Public” and “Private” markets has officially dissolved.
JPMorgan Chase, the world’s top fee-earning investment bank, announced today the formation of a new “Private Capital Advisory & Solutions” team. The move is a direct response to the “Stay Private Longer” phenomenon that has seen companies like SpaceX and OpenAI reach mega-cap valuations without ringing the opening bell.
🚀 THE LEADERSHIP SIGNAL: The most telling detail is who is running it.
- Keith Canton will lead the new unit.
- His Background: Canton previously led Americas Equity Capital Markets (ECM).
- The Implication: Moving a top Public ECM banker to lead a Private capital group signals that JPMorgan views private raises as the new IPO. The prestige—and the fees—have shifted.
⚙️ THE MANDATE: This isn’t just a fundraising desk. The group will combine Capital Raising with M&A Advisory.
- Global Head of M&A Anu Aiyengar notes: “Private markets… are fundamentally reshaping the capital landscape.”
- The Goal: Service the complex liquidity needs of “Private Mega-Caps”—from raising multi-billion dollar rounds to structuring secondary sales for employees and early investors.
📉 THE CONTEXT: JPMorgan is aggressively institutionalizing the private market. Last year, they began publishing research notes on private companies—a service traditionally reserved for public stocks. Now, by formalizing this advisory group, they are ensuring they capture the fees from the “Private IPOs” happening years before a potential listing.
💡 ANALYST TAKEAWAY: The traditional investment banking model (“Wait for the IPO”) is broken. With value creation shifting entirely to the private markets, banks must adapt. JPMorgan’s new group acknowledges that for the next generation of tech titans, the “Series F” or “Tender Offer” is the primary liquidity event, not the S-1.
👇 Bankers & VCs: Do you expect “Private Capital Advisory” to eventually generate more fees than traditional IPO underwriting?