JPMorgan praised Palantir’s software publicly, using it for years to spot insider trading and fraud, and inducted the startup into its Hall of Fame. At times, Palantir stationed more than 100 engineers at the bank’s offices, which functioned as an unofficial research lab to develop commercial applications. That was a turning point for the startup, which previously catered to the Department of Defense and other government agencies. JPMorgan Chase became one of Palantir’s first large commercial customers, enlisting its help to hunt for misconduct in the wake of the 2008 financial crisis. While regulatory filings show that Morgan Stanley has been the primary bank arranging private funding to Palantir in recent years, it wasn’t always necessarily in the lead. Some of Morgan Stanley’s most senior deal makers - technology banking chief Michael Grimes, head of private sponsors David Dwek, and lead software dealmaker David Chen - nurtured the relationship. Morgan Stanley became a customer of Palantir and began raising capital for the data firm. Morgan Stanley began strengthening ties to Palantir CEO Alex Karp more than five years ago in a move that involved the bank’s chief operating officer at the time, Jim Rosenthal. Representatives for Palantir and Morgan Stanley declined to comment. The increasingly earnest preparations have added urgency to banking relationships that have been in flux for more than a decade. Palantir expects to turn a profit in 2018 and will probably file for an IPO in 2019 or early 2020, according to insiders. Part of the reason Palantir picked Morgan Stanley was its ability to work with government-backed entities that tend to be patient, long-term shareholders, people said. Morgan Stanley is among banks that arrange equity investments for big investors including family offices, hedge funds and sovereign wealth funds, helping pump additional cash into the likes of Uber, WeWork and Flipkart - closely held ventures that, in an earlier era, would probably have gone public already. Its $474 billion asset-management arm helped provide funding to Palantir, giving the private enterprise time to develop. Along the way, some of the financial industry’s largest firms have taken stakes in Palantir, become its customers, and in one case, even stumbled into a minor scandal, prompting a severing of ties.Īt Morgan Stanley, investment bankers led the effort to build a relationship, but a sleepier part of the firm also proved pivotal. The investment bank’s spot at the front of the herd caps an unusually long and elaborate Wall Street courtship of a Silicon Valley startup. That haul might double if Morgan Stanley handles an initial public offering for Palo Alto’s Palantir, a deal people familiar with the matter say is nearing as the company turns profitable. The bank has earned about $60 million in fees arranging private funding for the 14-year-old company. Now its bankers are finding it’s also lucrative to slow-walk a unicorn into the light of day.Īfter a decade vying with Wall Street rivals, Morgan Stanley is emerging as the adviser of choice for Palantir Technologies, Peter Thiel’s secretive data-mining and visualization venture. Morgan Stanley is usually at the forefront of whisking young tech companies public - handling stock offerings for Apple, Google and Facebook. (AP Photo/Mark Lennihan) Mark Lennihan / Associated Press 2008 The government will be buying preferred stock in Morgan Stanley, one of the country's largest financial institutions. government's plans to spend $250 billion to buy stock in private banks but also collected profits from the previous day's massive advance. Wall Street fluctuated Tuesday as investors reacted enthusiastically to the U.S. Facebook Twitter Email People enter Morgan Stanley headquarters, Tuesday, Oct.
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