INVESTMENT ANALYSIS GUIDE
How to Write an Investment Committee Memo
An investment memo explains the opportunity, evidence, return, risk and decision in a traceable format.
In this guideWhat the analysis measuresCalculation frameworkUnderwriting reviewHow to use the result
What the analysis measures
State the transaction, asset, strategy, capital requirement and recommendation first. Separate facts, assumptions and unresolved diligence.
Calculation framework
Summarize sources and uses, operating case, financing, valuation, returns and downside with links to the supporting model.
Underwriting review
Name the few assumptions that drive the decision and show sensitivities or scenarios. Avoid presenting one precise forecast as certainty.
How to use the result
Conclude with risks, mitigants, conditions, governance and next steps. Every headline number should reconcile to the financial model.