ICYMI: DC Journal: The ‘Watchdog’ Watching Out for Democrats: PESP’s Partisan Money Trail

“Given PESP’s funders and the information provided, it’s clear PESP is a liberal/progressive ideological advocacy outlet, not an independent research group. Which is par for the course in American policy influence.” – Michael Watson, Research Director for Capital Research Center

The ‘Watchdog’ Watching Out for Democrats: PESP’s Partisan Money Trail

By Randall Bloomquist

DC Journal

April 16, 2026

With progressive Democrats like Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez attacking the private equity industry, is it a surprise that a self-declared “watchdog” group has deep ties to the Democratic Party?

The Private Equity Stakeholder Project (PESP) describes itself as a watchdog focused on the potential negative impacts of the burgeoning private equity sector of the U.S. investment market. The group claims its cause is nonpartisan and that it seeks to enlist all public officials in the effort to ensure private investment doesn’t run roughshod over workers and communities in pursuit of profit.

But public records show the group’s funding comes overwhelmingly from left-leaning organizations, and PESP’s political arm has made hundreds of thousands of dollars in campaign donations to Democrats.

Private equity (PE) firms raise capital from institutional or wealthy individuals to buy, restructure, and improve the performance of companies. PE firms take an active role in management to boost profitability and sell the companies for a profit within four to seven years. Critics like AOC often describe them as “vulture capitalists,” and the New York Democrat is the primary sponsor of the Stop Wall Street Looting Act, regulating private equity.

Enter PESP, which has built a reputation in Washington, D.C. as a go-to source for research critical of the industry. Its reports have been cited in congressional hearings, regulatory debates, and media coverage examining healthcare consolidation, housing costs and pension fund investments.

Left out, critics say, are the organization’s partisan ties.

As a nonprofit, PESP cannot engage in political activity. And, according to PESP spokesman Matt Parr, “PESP has never endorsed or supported a candidate for office from either party.”

That’s technically true, concedes Michael Watson of the Capitol Research Center, but entirely misleading.

“The ‘Project’ — the charitable-education arm — hasn’t supported a candidate,” Watson said. “However, PESP’s affiliated 501(c)(4), Private Equity Stakeholder Action, has reported political campaign expenditures on its tax returns, and it makes endorsements on its website.”

At least $300,000 of PES Action’s donations to Democrats in recent years were made possible by grants from the Open Society Policy Center, which progressive philanthropist George Soros funds.

And every candidate on the site is a Democrat.

The data also show that PES Action shares staff with PESP. Alyssa Giachino, who is the organization’s Treasurer, also serves as PESP’s Investor Engagement Director. Jim Baker is its President and serves as PESP’s Executive Director.

PESP has received funding from several left-leaning organizations, including the Ford Foundation and the Marguerite Casey Foundation, which engages in self-described “social justice philanthropy.”

Disclosures compiled by ProPublica show 2024 PES Action contributions to Democrats like Washington gubernatorial candidate Bob Ferguson, and Oregon State Treasurer Elizabeth Steiner, as well as to Americans for Responsible Growth, an advocacy group made up of state finance officers from Democratic-controlled states.

In Pennsylvania, campaign finance records show a $10,000 expenditure supporting Josh Shapiro during his 2022 gubernatorial campaign. In the closing days of the campaign, they posted on social media that the state “needs a governor like Josh Shapiro to combat private equity firms.”

The partisan activity has been so public that in 2025, the group Reclaiming Americans’ Freedom filed a complaint with the Internal Revenue Service alleging that PESP and PES Action engaged in excessive political activity inconsistent with nonprofit status. The complaint accused the organizations of providing “improper private benefit” to Democratic candidates.

Parr dismissed the complaint as “totally baseless” and says the IRS has not contacted the group regarding the filing.

PESP’s influence with Democrats goes beyond money. Its research and ideas wield considerable heft in the party’s policymaking circles.

PESP defenders point to the organization’s support for President Donald Trump’s proposed ban on PE firms buying more private homes. Critics say that’s the exception that proves the rule, standing out as it does from PESP’s overwhelming criticism of the Trump administration.

Washington observers note that PESP’s positions on private equity regulation align with those of Democratic policymakers. So, it makes sense that PESP’s political arm would support Democratic candidates and organizations. Policy-focused nonprofits often maintain affiliated advocacy arms precisely to separate educational work from political engagement, a legal and common structure in Washington.

Watson concedes there’s nothing new about partisan interests supporting activist groups. What’s important is that the politicians and members of the press using their reports make that partisanship public.

“These sorts of advocacy groups—on both sides—are really ‘nonpartisan’ only in the strictest sense of not being officially aligned with a party — and for 501(c)(3) charities, not officially participating in election advocacy,” Watson said. “Given PESP’s funders and the information provided, it’s clear PESP is a liberal/progressive ideological advocacy outlet, not an independent research group. Which is par for the course in American policy influence.”