What should be included in an investment memo?

How do you write an investment memo?

Here are the 11 things we always include in our memos:

  1. Company Overview / Track Record. Who the hell are we, and why do we deserve your trust and hard-earned dollars? …
  2. Investment Overview. …
  3. Reasons to Acquire. …
  4. Location Overview. …
  5. Tenant Overview. …
  6. Sources and Uses of Funds. …
  7. Financial Summary. …
  8. Partnership Terms.


How do you write an investment memo for private equity?

The following would be the general outline of an investment memo based on what I saw.

  1. Executive Summary -> investment thesis, why the company, industry average growth rate, brief growth strategy and exit strategy.
  2. Source of deal – Background of seller and reason for sale (retirement/spin off etc)
  3. History of the business.

What is a VC investment memo?

After a venture capitalist hears a startup pitch and does some due diligence, he or she will draft an investment memo. The document may be five to ten pages long and provide analysis on the pros and cons of the opportunity, along with a recommendation for the partners as to whether to pursue the deal or not.

THIS IS INTERESTING:  Your question: Where is Fisher Investments headquartered?

What should I look for in an offering memo?

An offering memorandum provides a potential investor with relevant information about a company like in depth financial statements, financial performance, management biographies, description of business operations, and any other information that will help an investor perform due diligence.

What is a pitch memo?

That’s where a pitch memo comes in. Unlike a deck, it is self-explanatory. The memo allows a startup to make its pitch to many more potential investors, simply because its founders don’t have to explain it every time, he said. What’s more, the memo can make meetings with investors more productive, he said.

How do I write an investment committee memo?

The Investment Committee Memorandum

  1. HEADER: The header of the memo is a table with key information relating to the startup. …
  2. SUMMARY: A brief description, 3–5 sentences, of the new venture starting with the recommendation of the lead. …
  3. PROBLEM: …
  6. MARKET: …
  7. GO TO MARKET: …


What does an investment thesis look like?

Most investment theses are in written form, and can be used to look back and analyze why a particular decision was made in the first place—and whether it was the right one. … The thesis further states that the investor plans to hold the stock for three years, during which its price will rise to reflect its true worth.

How do you structure an investment thesis?

3. Structure a presentation

  1. Overarching trends that are shaping the industry and/or consumers’ psychology.
  2. Macro/Micro beliefs/assumptions that the thesis is founded on.
  3. Thesis definition.
  4. Supporting evidence and insights from charts/data that supports trends.
  5. Startups of interest (4–5 startups that fall into thesis)
THIS IS INTERESTING:  What happens to shareholders in liquidation?


What makes a good private equity investment?

A competitive business plan must:

Be unique and visionary within the industry. Hold the promise of great value for the customer. Include comprehensive short and long-term plans. Include a SWOT analysis for both potential partners and competitors.

How do you pitch a deck?

Pitch Deck Do’s

  1. Limit each slide to expressing one idea. You want to keep your entire audience on the same page. …
  2. Keep a consistent look in presentation. Use the same font, size, color and capitalization format across all slides of your investment pitch deck. …
  3. Don’t make it too long. …
  4. Don’t Come unprepared.

What is an offer memorandum?

An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more.

What is investment teaser?

An Investment Teaser is a one- or two-page professional document that is used to introduce an acquisition. Learn how mergers and acquisitions and deals are completed. … Teasers are typically prepared “blind” (i.e., on a no-name basis) to maintain the confidentiality of the potential target investment.

What are fund offering documents?

The offering documents are the necessary paperwork that the manager must give to prospective investors. The offering documents will look very similar to a mutual fund prospectus. The three parts of the offering documents are: The private placement memorandum (also sometimes called the offering memorandum).

Is a PPM the same as a prospectus?

An private placement memorandum, also referred to as an PPM, is like a prospectus and the term is used interchangeably worldwide for private offerings, yet for private offerings the term mostly used is prospectus.

THIS IS INTERESTING:  Is Vodafone paying a dividend?

What is included in a PPM?

A PPM provides the offering structure, the share structure of the company, SEC disclosures about the shares being purchased, company information, information on company operations, risks involved with the investment, management information, use of proceeds, information on certain transactions that could affect the …

Blog about investments