AI Pitch Fatigue: Lee McCabe on What Private Equity Actually Wants

In a recent LinkedIn post, Lee McCabe, Managing Partner at Claymore Partners, shared his candid perspective on the deluge of AI platform pitches targeting the private equity sector. McCabe expresses frustration with the current wave of unsolicited messages, many of which, he argues, come from individuals lacking genuine private equity experience.

McCabe highlights a common disconnect between AI vendors and their intended audience:

“Most of the people pitching them have never worked in private equity. But they’ve apparently solved it.”

The Enduring Power of Traditional Tools

The post pushes back against the notion that AI is a guaranteed path to value creation in private equity, emphasizing the sector’s historical reliance on established, albeit less glamorous, tools. As Lee McCabe notes, the industry has achieved significant financial success using fundamental business software and a results-driven approach.

“Private equity has made billions using only Outlook, Excel and a fairly unpleasant attitude towards missing budget,” McCabe writes, underscoring the sector’s focus on tangible financial outcomes.

Crafting a More Effective AI Pitch

McCabe’s core message to AI vendors is a call for more substance and less jargon. He argues that a generic pitch is insufficient and that vendors must demonstrate a clear understanding of private equity’s specific needs and pain points. The emphasis, according to McCabe, should be on measurable improvements rather than the mere integration of AI.

Demanding Specificity and Proven Results

Lee McCabe urges vendors to move beyond buzzwords and present concrete evidence of their platform’s impact. He outlines what a more compelling pitch would entail:

“Show me a specific problem you understand. Show me who has used your product and what actually improved. Revenue. Margin. Cash. Something I can put in the spreadsheet you’re so keen to replace.”

This demand for specificity reflects a pragmatic approach common in private equity, where quantifiable results are paramount. Vague promises, as McCabe points out, are counterproductive.

“We help unlock value across the investment lifecycle” tells me absolutely nothing, except that another email is coming on Thursday.”

McCabe’s post serves as a stark reminder to AI solution providers that their value proposition must be grounded in the practical realities and financial metrics that drive private equity decision-making. Simply stating the presence of AI is not enough; vendors need to articulate clear, demonstrable benefits that resonate with the industry’s core objectives.

The insights shared by Lee McCabe on LinkedIn offer valuable guidance for technology companies seeking to engage effectively with the private equity community, advocating for pitches that are specific, problem-focused, and backed by quantifiable results.