Underwriting case
The scenario and assumptions an investor uses to assess and approve an investment. It connects operating expectations, purchase price and financing to projected investment outcomes.
Underwriting case in round numbers
Hypothetical: management forecasts 15% annual revenue growth, while the fund uses 8% annual revenue growth for the same next-year period. These are operating assumptions, not investment-return hurdles. The fund models the resulting cash flows and investment returns separately. Clearing a return target alone does not secure funding: diligence, risks, financing and approvals still matter.
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| Scenario | Annual revenue growth | Role |
|---|---|---|
| Management case | 15% | Management forecast |
| Underwriting case | 8% | Fund operating assumption |
Terms Related to Underwriting case
Due diligence · Sensitivity analysis · Investment memo · CIM · All of the glossary