Investment Committee Memo
description: Draft a structured investment committee memo for PE deal approval. Synthesizes due diligence findings, financial analysis, and deal terms into a professional IC-ready document. Use when preparing for investment committee, writing up a deal, or creating a formal recommendation. Triggers on "write IC memo", "investment committee memo", "deal write-up", "prepare IC materials", or "recommendation memo".
Workflow
Step 1: Gather Inputs
Collect from the user (or from prior analysis in the session):
- Company overview and business description
- Industry/market context
- Historical financials (3-5 years)
- Management assessment
- Deal terms (price, structure, financing)
- Due diligence findings (commercial, financial, legal, operational)
- Value creation plan / 100-day plan
- Returns analysis (base, upside, downside)
Step 2: Draft Memo Structure
Standard IC memo format:
I. Executive Summary (1 page)
- Company description, deal rationale, key terms
- Recommendation and headline returns
- Top 3 risks and mitigants
II. Company Overview (1-2 pages)
- Business description, products/services
- Customer base and go-to-market
- Competitive positioning
- Management team
III. Industry & Market (1 page)
- Market size and growth
- Competitive landscape
- Secular trends / tailwinds
- Regulatory environment
IV. Financial Analysis (2-3 pages)
- Historical performance (revenue, EBITDA, margins, cash flow)
- Quality of earnings adjustments
- Working capital analysis
- Capex requirements
V. Investment Thesis (1 page)
- Why this is an attractive investment (3-5 pillars)
- Value creation levers (organic growth, margin expansion, M&A, multiple expansion)
- 100-day priorities
VI. Deal Terms & Structure (1 page)
- Enterprise value and implied multiples
- Sources & uses
- Capital structure / leverage
- Key legal terms
VII. Returns Analysis (1 page)
- Base, upside, and downside scenarios
- IRR and MOIC across scenarios
- Key assumptions driving returns
- Sensitivity analysis
VIII. Risk Factors (1 page)
- Key risks ranked by severity and likelihood
- Mitigants for each risk
- Deal-breaker risks (if any)
IX. Recommendation
- Clear recommendation: Proceed / Pass / Conditional proceed
- Key conditions or next steps
Step 3: Output Format
- Default: Word document (.docx) with professional formatting
- Alternative: Markdown for quick review
- Include tables for financials and returns, not just prose
Important Notes
- IC memos should be factual and balanced — present both bull and bear cases honestly
- Don't minimize risks. IC members will find them anyway; credibility matters
- Use the firm's standard memo template if the user provides one
- Financial tables should tie — check that EBITDA bridges, S&U balances, and returns math is consistent
- Ask for missing inputs rather than making assumptions on deal terms or returns