Investment memo

A written analysis supporting an investment decision, including the thesis, valuation, risks and approval request. A final memo does not itself legally commit the fund; approval, conditions and execution are separate steps.

Investment memo in round numbers

Hypothetical: a preliminary memo proposes a gross equity multiple on invested capital (MOIC) target of 3.0x, meaning total equity proceeds of three times invested equity before specified fees and carry. It is a target, not a forecasted certainty or annual return. The final analysis must state cash-flow timing and assumptions and reflect the risks and new evidence found in diligence.

  • thesis
  • risks
  • valuation
  • the ask
  • argued in writing

Due diligence · Deal funnel · IOI & non-binding offer · Letter of intent (LOI) · Straw man · All of the glossary