Ic Memo

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

Hermes Profile Notes

This skill was packaged from pi-financial-services source path plugins/vertical-plugins/private-equity/skills/ic-memo for the Hermes financial-services profile. Use institutional data connectors first when available, cite sources, and stage outputs for qualified human review.

Common Pitfalls

1. Do not present drafts as investment, legal, tax, or accounting advice.
2. Do not use web search as the primary source when an institutional MCP/data connector is available.
3. Do not execute transactions, contact clients, post to a ledger, or approve onboarding. Stage outputs for review.

Verification Checklist

• Inputs, assumptions, dates, and currencies are explicit.
• Numbers tie across tables, models, decks, and memos.
• Sources are cited and institutional data is preferred where available.
• Output is labeled draft / for human review where appropriate.