What to Know About Equity Reporting Grants to Aid Newsrooms

Private equity investment in various industries often remains hidden from public view, but its impact can be far-reaching, as revealed by investigative journalism conducted by local newsrooms. In Hawaii, for example, a significant portion of the hotel industry is controlled by private equity investors, a fact largely unknown to the state's residents. Similar revelations emerged in Bloomington, Indiana, where the local paper experienced a drastic reduction in news coverage following acquisition by private equity owners. Meanwhile, in Milwaukee, Wisconsin, it was discovered that a single firm had acquired over 1,000 single-family homes, primarily in Black neighborhoods, with little public awareness of this significant housing shift.

To shed light on these matters, Poynter’s Beat Academy awarded three private equity reporting grants, funded by the Omidyar Network, to journalists seeking to uncover the truth behind these hidden investments. One grant recipient, Hawaii Business Magazine, delved into the ownership and impacts of private equity in Hawaii, highlighting the importance of investigative reporting in revealing the often obscured influence of private equity in local and national economies. This underscores the vital role that investigative journalism plays in informing the public and fostering transparency in otherwise opaque sectors of the economy.

Investigating the realms of private equity and real estate investment trusts presents significant challenges for journalists, given the complexity and lack of transparency inherent in these sectors. Despite the daunting nature of these subjects, news organizations have undertaken the task of uncovering their intricacies, each facing unique hurdles in the process.

For instance, Milwaukee Journal Sentinel reporters Genevieve Redsten and Cary Spivak delved into the operations of VineBrook Homes Trust, discovering its substantial debt and subsequent property sell-off, which had implications for community stability. Meanwhile, Hawaii Business Magazine's Noelle Fujii-Oride navigated through corporate filings and proprietary data to unravel the intricacies of Hawaii's hotel industry, despite lacking a background in business.

In Bloomington, Indiana Public Media meticulously tracked declines in staffing at local publications, demonstrating the tangible impact of private equity ownership on news coverage. Despite the arduous nature of investigating private equity, these efforts yield valuable insights, highlighting the importance of investigative journalism in uncovering hidden truths and holding powerful entities accountable.

Amidst a climate where media credibility is in question, the investigative projects undertaken by various newsrooms prompted meaningful dialogues within their communities. Indiana Public Media's Sarah Vaughan highlighted the void created by the absence of coverage on high school sports, while a former Bloomington mayor raised concerns about the democratic implications of insufficient reporting on local lawmakers' decisions.

In Milwaukee, collaborative reporting by the Milwaukee Journal Sentinel and the Milwaukee Neighborhood News Service uncovered a multimillion-dollar real estate firm's operations in lower-income neighborhoods, sparking community outrage over the lack of awareness. Similarly, Hawaii Business Magazine's examination of private equity in the hospitality sector initiated discussions on fair distribution of benefits from tourism-driven growth. 

The projects conducted by Indiana Public Media, Hawaii Business Magazine, and the Milwaukee outlets had significant impacts. Indiana Public Media's initiative in south-central Indiana spurred discussions on democracy and local news coverage. Hawaii Business Magazine's analysis provided insights into private equity ownership and spurred ongoing conversations on economic equity. The Milwaukee collaboration shed light on unseen stakeholders, leading to tangible actions like legislative proposals on housing affordability. These projects illustrate journalism's role in presenting crucial topics for public consideration, promoting critical thinking over predetermined viewpoints.