Lee McCabe Critiques ‘Polite’ Private Equity Media on LinkedIn

In a recent LinkedIn post, Lee McCabe offers a sharp critique of the conventional media’s coverage of the private equity industry, arguing that commercial pressures lead to a lack of genuine scrutiny. McCabe contends that the financial incentives between media outlets and the firms they cover create a conflict of interest, resulting in coverage that is often more promotional than analytical.

McCabe highlights the inherent tension in the media’s relationship with private equity firms. He writes:

“The publications covering the industry depend on the same firms for access, advertising, event sponsorship, subscriptions, and conference budgets. So naturally the coverage is balanced, constructive, and just critical enough to feel legitimate without upsetting anybody who might be buying a table next quarter.”

The ‘Press Release’ Style of PE Coverage

According to McCabe, this dynamic leads to a predictable and often superficial style of reporting. He describes much of the industry’s media coverage as:

“That is why so much PE coverage reads like a press release that went to business school. A deal gets announced. The quotes are sterile. The strategy is always ‘compelling.’ The value creation plan is always ‘clear.’ The risks are politely implied, never properly examined.”

McCabe clarifies that this is not a failing of individual journalists but a systemic issue stemming from the business model. He argues that the need to maintain access for future stories and interviews compromises the ability to deliver truly independent reporting.

The Case for ‘Not Very Private Equity’

The core of McCabe’s post introduces and explains the rationale behind ‘Not Very Private Equity’ (NVPE), a platform he suggests is an attempt to fill this void. He states that NVPE’s purpose is to provide the critical analysis that the mainstream trade press often avoids.

As Lee McCabe notes, the industry requires more than just flattering summaries of transactions. He advocates for:

“The industry does not need more flattering summaries of who bought what. It needs sharper thinking, more scrutiny, and actual opinions on whether any of this makes sense.”

McCabe positions NVPE as an independent voice, willing to offer direct opinions on deals and firms, irrespective of potential commercial repercussions. He emphasizes the importance of transparency and the courage to label a deal as poor if it truly is, without being influenced by the financial relationships inherent in traditional media sponsorships.

In Lee McCabe’s view, this type of straightforward, critical assessment should not be an anomaly. He concludes that in the current landscape of private equity media, such independence is rare and valuable, suggesting that NVPE’s approach is a necessary corrective to a media environment that prioritizes access over accountability.