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| The Daily Pitch |
| PE, VC and M&A |
| Your edge on global private capital markets |
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| Good morning. In today's Daily Pitch, we look at JP Morgan's new private capital advisory team, China's acceleration in biopharma and rising prices of the world's largest private companies. |
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| Our new weekly newsletter, Public Meets Private, covers the intersection of alternatives and the wealth channel. Sign up here |
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| China takes the lead in new drug development—with no plans to let it go |
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By Ben Zercher, Sr. Research Analyst, Biotech and Pharma
The stakes are rising for how quickly US capital and clinical infrastructure can keep pace with China's rapid advancements in biopharma innovation.
For decades, the US led the way in novel therapeutic development, backed by deep capital markets and the world's most mature clinical trial ecosystem. That paradigm is changing rapidly as China's investments in new technologies and clinical modernization translate into attractive therapies ready to be tested in patients.
That shift was on display in 2025, when licensing to Western pharmaceutical firms surged and large- and mid-cap biopharma companies raced to secure Chinese-origin programs. Many of these deals centered on early clinical-stage candidates across new therapeutic approaches, reinforcing China's growing role as a source for innovation.
The backdrop is the recently enacted US Biosecure Act, which aims to reduce reliance on Chinese-linked biopharma development. Although supply chain security is a defensible priority, the policy could introduce cost and execution pressure for early-stage companies trying to scale new programs into the clinic.
VC funding trends are aligned: Legacy pipelines are being meaningfully displaced as investors focus on emerging technologies. Combined with the early signs of a reopening IPO window, China's biopharma ecosystem looks capable of funding and scaling innovation domestically, intensifying competition with US biopharma. |
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Looking ahead, in our latest analyst note, we highlight private Chinese companies positioned to shape 2026, grouped into "innovation clusters."
Together, they reflect how China is building on its global strength in antibodies while expanding into cell and gene therapy, nucleic acids and other emerging biologic approaches. These clusters suggest China is applying the antibody playbook of fast iteration and efficient development to the next wave of modalities. |
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• Unicorn valuations are surging—even without a flood of new unicorns. The Morningstar PitchBook Global Unicorn Index, which tracks prices of the world's largest private companies, rose 68% over the past year, powered by aggressive investment in leading AI players. Explore our indexes
• Pure Crypto, a longtime investor in funds focused on crypto, is targeting $100 million in an opportunistic vehicle to snap up secondary interests in its existing portfolio. Read more
• When a secondary investor is both an LP and a buyer in a continuation fund, the sales process needs to be squeaky clean—in many cases, it's not. Go deeper |
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| Success of JP Morgan's private capital advisory team not a given |
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| JP Morgan CEO Jamie Dimon (Kevin Dietsch/Getty Images) |
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By Rod James, Sr. Private Equity Editor
JP Morgan has started a new team to help private companies raise capital. Though a dominant force elsewhere, the bank's size is no guarantee of success in this rapidly growing, talent-constrained area of investment banking.
The team will advise owners of private businesses, mainly private equity sponsors, on raising capital for them without relinquishing control.
These options, such as moving companies into continuation funds or issuing preferred shares, have become increasingly popular in recent years as exits through traditional avenues have slowed, prompting banks to expand their offerings to clients.
"Historically, you only needed to think about an IPO or a sale as an exit. But there's much more you can do in the middle," Keith Canton told The Wall Street Journal, which first reported the news Jan. 16. Canton leads the private capital advisory team at JP Morgan and is co-head of equity capital markets in the Americas.
Continuation funds have become the preferred strategy.
Rivals Morgan Stanley, Goldman Sachs and Citi have had some form of in-house PCA business for several years.
According to conversations with PCA professionals, some of whom have been involved in the buildout of PCA teams at bulge-bracket banks, JP Morgan has a few things to think about.
The most active PCA groups are not big, full-service investment banks but boutique players, such as Evercore, Jefferies, Lazard and PJT Partners.
This dominance will make it hard for even JP Morgan to challenge on scale, said a New York-based managing director at a boutique bank who spoke under the condition of anonymity. They will need an angle to stop potential clients from taking their business to a seasoned player with a well-worn secondaries playbook.
Continuation fund deals combine elements of M&A and PE capital raising. While JP Morgan is extremely well placed for the former, it is less well equipped to do the latter.
With a small number of exceptions, the largest buyers in the secondary market have been the same for the past decade. Having strong relationships at these firms and understanding exactly what they are looking for in a continuation fund deal is vital. |
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Smart reads that caught our eye.
• The Justice Department has opened a criminal probe in the alleged corporate spying case involving HR tech rivals Deel and Rippling. [The Wall Street Journal]
• Could the US be the next to fall for China's electric cars? Chinese automakers are closing in, one country at a time. [The Atlantic]
• AI and economic uncertainty are leading to a drought in graduate jobs. [Financial Times] |
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