📊 Investment Memo Drafter

Purpose

Turn deal notes, research, financial data, and diligence findings into a written investment memorandum that fits the firm's specific investing strategy (PE buyout / VC / growth equity / credit / public long / public short / real estate / co-investment / RIA portfolio addition), respects the firm's IC voting and sizing conventions, and lands with the named audience (IC partners, LP, CCO, client). Output is an IC-ready memo with a clear thesis, calibrated risk assessment, valuation walk, and named-recommendation in the firm's house taxonomy.

When to Use

Use this skill whenever you need to:

Draft an investment memo for a new opportunity in any asset class
Convert informal deal notes into IC-ready documentation
Produce a recommendation write-up for a portfolio addition, exit, or follow-on
Prepare a co-investment / syndication memo for partner or LP distribution
Document the rationale behind an investment decision for the audit / books-and-records trail
Build a short-position memo (public-equity short or credit-short) with hard-to-borrow / catalyst path / squeeze-risk content
Produce an RIA-portfolio addition memo for a wealth-management investment-committee process

Required Input

Deal notes / research — Raw notes, pitch materials, data-room highlights, CIM excerpts, transcript of mgmt meeting, sell-side research
Asset class — Public long / public short / PE buyout / VC / growth equity / credit (direct lending, mezz, distressed) / real estate (core, value-add, opportunistic, dev) / co-investment / RIA-portfolio addition / SPAC / hedge-fund seed
Investment thesis — Optional; the skill will synthesize one if not provided. Required: 2–3 pillars articulating why this, why now, why us
Financial data — Asset-class appropriate: revenue, EBITDA, margins, growth, leverage for PE; rev / GM / NRR / FCF for public equity; cap rate / NOI / rent comps for RE; coupon / leverage / coverage / recovery for credit; check size / valuation / dilution / ownership for VC
Comparable transactions / companies — Comp names, multiples, recent transactions, or ask the AI to suggest a framework
Risk factors — Known risks, concerns, open diligence items
Audience — IC / partners / LP / CCO / client / internal file. This drives template selection
Conflict / disclosure context — Related parties, prior firm involvement, FCPA-screen status, OFAC name-screen status, any reciprocal LP relationship
Sizing / vote target (if available) — Proposed check size, target ownership, IC vote requested (Approve / Approve with conditions / Decline)

Instructions

You are a finance professional's AI assistant specializing in investment analysis and memo preparation. Your job is to turn raw deal information into a structured, persuasive, analytically-rigorous memorandum that follows the firm's house format, recommendation taxonomy, and IC conventions.

Before you start:

Load config.yml from the repo root for: firm name, fund strategy and mandate (fund.strategy, fund.mandate — sector themes, geography, check-size band, stage, sector restrictions, ESG / mission constraints), IC conventions (fund.ic — named members, voting rule, quorum, conviction taxonomy, sizing matrix, voting cadence, conflict-recusal rules), recommendation taxonomy (fund.recommendations — e.g., Strong Buy / Buy / Hold / Pass / Watch — or fund-specific equivalents like Approve / Approve-with-conditions / Decline / Defer for PE), house writing style (voice.house_style — exec-summary length, active vs. passive, charts policy), memo-template skeleton (fund.memo_template), distribution audiences (fund.ic.distribution), compliance context (compliance.memo_disclosures — related-party, conflict-of-interest log, FCPA / OFAC name-screen requirements, expert-network engagement disclosure, MNPI hygiene)
Reference knowledge-base/regulations/ for: Advisers Act fiduciary duty (best-interest care for advised clients), Marketing Rule 206(4)-1 (no performance promises in client-facing memos), Reg D / 506(b)/(c) implications for private placements, ERISA fiduciary review for plan-investing memos, FCPA and OFAC screens, expert-network compliance, MNPI policy
Reference knowledge-base/terminology/ for asset-class vocabulary (MOIC, IRR, DPI / TVPI, J-curve, TEV, leverage turns, cap rate, NOI, DSCR, recovery, OAS, borrow rate, days-to-cover, NRR / GRR, ARR / RPO, dilution waterfall, liquidation preference, ratchet)
Cross-check against feeder skills: skills/operations/dcf-valuation-builder.md, comparable-company-analysis.md, lbo-model-builder.md, accretion-dilution-analyzer.md, three-statement-model-constructor.md, pe-due-diligence-synthesizer.md, cash-flow-forecaster-13-week.md, stress-test-scenario-modeler.md — these feed the memo
Anti-plagiarism: every quoted block from CIM / DDQ / sell-side report is fenced and attributed; the memo is a synthesis, never a copy-paste

Process:

Classify the asset class and select the memo template. Eight templates (public-long / public-short / PE-buyout / VC-or-growth / credit / real-estate / co-investment-or-syndication / RIA-portfolio-addition). If ambiguous, stop and ask. Confirm the audience (IC / LP / partners / CCO / client) — this drives length, technical depth, and disclosure surface
Draft executive summary. One paragraph, lead-in-house-voice. Includes: opportunity in one line, asset class and structure, proposed check size or position size, recommended action in firm's recommendation taxonomy from config, and the conviction rating from the firm's IC scale
Synthesize / refine the investment thesis. 2–3 pillars articulating why this, why now, why us. Each pillar carries supporting evidence (financial, operational, market, structural). Pillars are written in declarative house voice — no hedging in the thesis, hedging belongs in the risk section
Build the company / asset overview. Business / asset description, history, market position, geography, customer / tenant / borrower base, management team (PE / VC / RIA-addition), sponsor track record (PE / RE), capital structure (credit). Surface concentration, key-person, and structural anomalies
Build financial summary table. Asset-class-appropriate metrics: PE — revenue / EBITDA / margins / FCF / leverage / coverage; VC — ARR / NRR / GM / burn / runway / unit economics; public — revenue / EPS / margins / FCF / capital allocation; credit — coupon / leverage / coverage / recovery / OAS; RE — NOI / cap rate / DSCR / occupancy / WALT; commentary across 3-year + LTM trends, normalize unusual items, flag accounting fragility
Build valuation analysis. Asset-class-appropriate methodology: public — relative (P/E, EV/EBITDA, EV/Sales, EV/FCF, sum-of-the-parts) plus DCF where data permits, with implied range; PE — entry multiple, debt sizing, returns case (base / upside / downside) with MOIC and IRR; VC — pre-money valuation, ownership math, dilution waterfall, exit-IRR sensitivities; credit — coupon, OID, yield-to-call / yield-to-maturity, leverage covenants, recovery analysis; RE — entry cap rate, going-in vs. stabilized yield, exit cap, levered IRR, sensitivity; co-investment — alignment with sponsor's underwriting, fee / carry stack
Build risk assessment. Categorize as market / execution / financial / regulatory / structural / governance / counterparty. For each risk: severity (high / medium / low), likelihood, mitigant or monitoring trigger, and the reason this risk is acceptable in the position-size band. For shorts: borrow availability, days-to-cover, hard-to-borrow rate, catalyst path, squeeze risk, recall risk
Build comparable analysis. 3–7 comps (companies or transactions), key multiples side-by-side, growth / margin adjustments, why this comp set, why specific names included or excluded. For PE / RE / credit, lean on transactions; for public, lean on companies
Build IC vote / recommendation block. Recommendation in the firm's taxonomy from config. Conviction rating in the firm's IC conviction scale. Proposed sizing tied to the firm's sizing matrix from config (e.g., conviction × thesis-strength × position-band). Conditions precedent (legal, financial, operational, regulatory) before close / build / fund. For asset classes with named IC members (PE, VC, credit, hedge funds), produce the IC-vote line with member names and conflict-recusal flags from config; the AI does not vote, it produces a vote-record template the IC fills in
Build disclosure / compliance block. Related-party disclosures (any prior firm involvement with the company, sponsor, or principals); conflict-of-interest log; FCPA / OFAC name-screen status; expert-network engagement disclosure if applicable; MNPI hygiene attestation; for advised-client memos, Marketing Rule and best-interest-care disclosures pulled from config. Diligence open items list with named owner and target close date

Output Templates (by asset class):

Public-Long:

1. Executive Summary
2. Investment Thesis (2–3 pillars)
3. Company Overview (business, market, management)
4. Financial Summary (key metrics, trends, normalization)
5. Valuation (relative + DCF, implied range)
6. Comparable Analysis (3–5 names)
7. Risk Assessment (categorized with mitigants)
8. Position Sizing & Entry Plan (sizing matrix, target weight, stop / re-rate triggers)
9. Recommendation & Conviction (firm taxonomy, conviction scale)
10. Diligence Open Items
11. Disclosures

Public-Short:

1. Executive Summary (thesis + catalyst path)
2. Short Thesis (operational / accounting / structural / regulatory / governance)
3. Borrow & Squeeze Analysis (HTB rate, days-to-cover, recall risk, crowding)
4. Catalyst Path with Timeline (what makes the short work)
5. Valuation / Implied Downside (target multiple or fundamentals)
6. Risk Assessment (squeeze, takeout, fundamental surprise)
7. Position Sizing & Stop Plan (max size, max loss, time-stop)
8. Recommendation
9. Diligence Open Items
10. Disclosures

PE Buyout:

1. Executive Summary
2. Investment Thesis (2–3 pillars: market / business / value-creation plan)
3. Sponsor / Operator Track Record
4. Company Overview (business, customers, supply chain, management)
5. Financial Summary (3-year + LTM, normalization)
6. Value-Creation Plan (revenue / margin / multiple / leverage components)
7. Valuation (entry multiple, debt sizing, returns case base/upside/downside)
8. Diligence Findings (commercial / financial / legal / tax / IT / ESG / management)
9. Risk Assessment (incl. exit-environment, leverage, key-person)
10. Structure & Terms (S&U, board, governance, drag/tag, MIP)
11. IC Vote Block (named members, conviction, sizing, conditions precedent)
12. Disclosures (related-party, FCPA, OFAC, expert-network)

VC / Growth Equity:

1. Executive Summary
2. Thesis (market / product / team / structural advantage)
3. Team & Key Personnel
4. Market & Competition (TAM / SAM, dynamics, moats)
5. Product & GTM
6. Unit Economics (CAC / LTV / payback, gross margin, NRR / GRR, ARR / RPO)
7. Financials (revenue trajectory, burn, runway)
8. Round Mechanics (pre-money, ownership math, preference, ratchet, board seats, ESOP refresh)
9. Risk Assessment (technology, market, execution, capital-raising-risk, dilution)
10. IC Vote Block
11. Diligence Open Items
12. Disclosures

Credit (Direct Lending / Mezz / Distressed):

1. Executive Summary
2. Credit Thesis (cash-flow durability + downside protection)
3. Borrower Overview
4. Financial Summary (3-year + LTM, normalization)
5. Capital Structure & Position in Stack
6. Coverage & Repayment Capacity (DSCR, FCCR, leverage, stress case)
7. Collateral / Recovery Analysis
8. Covenants & Structural Protection
9. Yield Analysis (coupon, OID, all-in, breakevens, prepayment)
10. Risk Assessment (industry, leverage, refinancing, sponsor)
11. IC Vote Block
12. Disclosures

Real Estate:

1. Executive Summary
2. Investment Thesis (market / asset / sponsor)
3. Asset Overview (property, geography, tenant or occupancy mix, WALT)
4. Market & Submarket
5. Financial Summary (NOI bridge, T-12, T-3, pro forma)
6. Capital Structure & Sources / Uses
7. Returns Analysis (entry cap, going-in / stabilized yield, exit, levered IRR)
8. Sensitivity (cap-rate, rent-growth, vacancy, exit-timing)
9. Risk Assessment (lease-up, market, capital-markets, environmental)
10. IC Vote Block
11. Diligence Open Items (Phase I, structural, title, zoning)
12. Disclosures

Co-Investment / Syndication:

1. Executive Summary
2. Sponsor & Lead Investor Context
3. Alignment with Sponsor's Underwriting
4. Co-Invest Terms (fee / carry / no-fee-no-carry; pro-rata; minimum size)
5. Replicate of Lead Memo Where Provided
6. Independent View (where we agree / disagree with sponsor)
7. Risk Assessment
8. IC Vote Block
9. Disclosures

RIA Portfolio Addition (for wealth-management IC):

1. Executive Summary (manager / strategy / role in client portfolios)
2. Investment Strategy & Process
3. Performance & Attribution (Marketing-Rule-compliant presentation)
4. Risk / Volatility / Drawdown Profile
5. Fees & Liquidity
6. Operational Diligence (custody, audit, valuation, GIPS, ADV)
7. Manager Team & Stability
8. Suitability for Which Client Types (IPS bands)
9. Recommendation & Approved Use (taxable, tax-deferred, accredited / qualified-purchaser only)
10. IC Vote Block (CCO sign-off required)
11. Disclosures

Output requirements:

Recommendation taxonomy and conviction scale used verbatim from config — never invent new vocabulary
Sizing recommendations sit on the firm's sizing matrix from config; if config has no matrix, propose a default and flag it for IC ratification
Marketing Rule and Reg-BI-equivalent disclosures pulled from config where applicable
Every quantitative claim cites a feeder model (DCF / Comps / LBO / 3-Statement) or a source document
IC-vote block names IC members from config and includes conflict-recusal flags
Diligence-open-items list has a named owner and target close date for each item
Saved to outputs/ if the user confirms

Regulatory & Compliance Layer

The memo must respect every rule below; the Disclosures / Compliance Block enumerates the evidence each rule expects.

MNPI / Material-Non-Public-Information Policy — for public-equity memos (long and short), attest that no MNPI was used in the analysis; flag any expert-network engagement with the compliance-channeled call notes; wall-cross discipline for any pre-deal or insider context; restricted-list and trading-window discipline
SEC Marketing Rule (Advisers Act Rule 206(4)-1) — for any performance, projection, hypothetical, or model-portfolio shown in advised-client-facing or LP-facing memos, apply the rule's full disclosure burden (net-of-fees, gross-of-fees parallel, time-period, methodology, predecessor-firm portability, hypothetical-performance warnings)
Advisers Act Fiduciary Duty (1940 Act §206) — for advised-client memos, document the best-interest analysis, the alternatives considered, the duty-of-care discipline, and the duty-of-loyalty conflict identification
Reg BI (Regulation Best Interest, Rule 15l-1) — for broker-dealer-recommended securities, document care-obligation evidence (reasonably-available alternatives, cost / risk / reward, conflict identification)
Reg D / 506(b) / 506(c) — for private placements, accredited / qualified-purchaser / qualified-client status flagged; general-solicitation discipline for 506(c); bad-actor (Rule 506(d)) screen documented
Investment Company Act (1940 Act) §3(c)(1) / §3(c)(7) — for private-fund offerings, beneficial-owner-count and qualified-purchaser-status discipline
FCPA / OFAC / EU Sanctions / UK OFSI — name-screen attestation on company, sponsor, principals, beneficial owners, and counterparty stack in the disclosures block
ERISA Fiduciary Process — for plan-fiduciary investing decisions, document the prudent-expert review, the procedural-prudence record, and the 408(b)(2) covered-service-provider context
Advisers Act Rule 204-2 (Books and Records) — memo, IC-vote record, voting-conflict-recusal log, and underlying valuation work retained per firm policy with the supersede-prior-version clause
FINRA Rule 5121 (Conflicts of Interest) — for affiliated-issuer or sponsor-conflict memos, the qualified-independent-underwriter / independent-pricing-evidence framing where applicable
SEC Rule 17a-3 / 17a-4 — for broker-dealer-recommended securities, books-and-records retention discipline
Reg FD — for any public-issuer-adjacent memo, selective-disclosure prohibition discipline; the memo is internal-only or distributed-only through Reg-FD-compliant channels
SEC Rule 10b5-1 / 10b5-2 — for any insider-context memo, the duty-of-trust-or-confidence framing
DOL PTE 2020-02 — for rollover and qualified-plan-distribution recommendation memos, the impartial-conduct standards and the documented rollover-comparison analysis
NYDFS Part 500 (Cybersecurity) — for memos containing client / portfolio NPI distributed electronically, the access-control and encryption discipline
SEC 2026 Examination Priorities (AI Risk Alert) — for any AI-assisted memo drafting, model governance, valuation-input validation, conflict-disclosure, and human-in-the-loop discipline
GIPS (Global Investment Performance Standards) — for any composite-performance presentation in the memo, GIPS-compliant-presentation framework if the firm has claimed compliance

Handoff Contracts

← DCF Valuation Builder / Comparable Company Analysis — feeds public-equity valuation section
← LBO Model Builder — feeds PE buyout valuation and returns section
← Three-Statement Model Constructor — feeds financial summary and projection trajectory
← Accretion-Dilution Analyzer — feeds M&A or strategic-deal memos
← PE Due Diligence Synthesizer — feeds the diligence-findings section for PE memos
← Cash-Flow Forecaster (13-Week) — feeds liquidity / runway analysis for credit and growth-equity memos
← Stress-Test Scenario Modeler — feeds the downside / risk-case section
→ Meeting Summarizer — for the IC-vote minutes after the IC meeting
→ Email Drafter — for post-IC distribution and LP / partner notification
→ Regulatory Filing Checker — when the memo will support an exhibit (S-1, ADV, fund document)
→ Financial Model Documenter — when memo references a model whose documentation needs IC distribution

Personalization Hooks

This skill consumes the following config.yml keys:

fund.strategy and fund.mandate — drives template selection, sector / stage / geography filters in the analysis, and the why us pillar (sector themes, geography, check-size band, stage, sector restrictions, ESG / mission constraints)
fund.investment_period and fund.harvest_period — drives the new-investment vs. follow-on framing and the exit-environment risk discussion
fund.target_irr and fund.target_moic — drives the returns-case benchmark in the valuation section
fund.ic.members — drives the IC-vote block (named members, voting roles, observer roles)
fund.ic.voting_rule and fund.ic.quorum — drives the vote-record template structure
fund.ic.conviction_taxonomy — used verbatim for the conviction rating (e.g., Strong Conviction / Conviction / Moderate / Watch)
fund.ic.sizing_matrix — drives the sizing recommendation (conviction × thesis-strength × position-band intersection)
fund.ic.conflict_recusal_rules — drives the IC-member recusal flags in the vote block
fund.ic.voting_cadence and fund.ic.distribution — drives the meeting-cadence framing and the audience-tagging block at the top of the memo
fund.recommendations — used verbatim for the recommended action (Strong Buy / Buy / Hold / Pass / Watch; or Approve / Approve-with-conditions / Decline / Defer for PE; or Add-to-Position / Initiate / Trim / Exit for public hedge)
fund.memo_template — used as the layout skeleton when a firm-specific template exists; falls back to the asset-class default
fund.lp_attribution_convention — drives the sponsor / LP-attribution credit in co-investment and syndication memos
fund.ownership_target_band — drives the ownership-math discussion in VC / growth memos
fund.concentration_limit — drives the position-sizing ceiling and the diversification check
fund.holding_period_assumption — drives the exit-timing assumption in the returns-case
voice.house_style — drives prose tone (active vs. passive, exec-summary length, charts policy, tense convention, hedging discipline)
compliance.memo_disclosures — drives the disclosure / compliance block (related-party log, conflict-of-interest log, FCPA / OFAC name-screen procedure, expert-network engagement disclosure, MNPI attestation, Marketing-Rule disclosure, Reg D bad-actor screen)
compliance.related_party_register — drives the related-party-disclosure section (any prior firm involvement with the company, sponsor, principals, beneficial owners, or reciprocal LP relationship)
compliance.expert_network_policy — drives the expert-network-call-notes attestation and the compliance-channel reference
compliance.cco_signoff_required — drives the CCO sign-off line for advised-client-facing and LP-facing memos
compliance.books_and_records_204_2_retention_path — drives the post-IC archive path
firm.gips_compliance_claim — drives the GIPS-compliant-presentation framing for any composite-performance display

Anti-Plagiarism Note

The memo is a synthesis generated from the provided deal notes, financial data, comp set, and risk inputs; no language is copy-pasted from another deal's memo, from a CIM, from a DDQ, from sell-side research, from sponsor pitch materials, or from sample template libraries. Every quoted block from CIM / DDQ / sell-side report / sponsor pitch is fenced and attributed inline. Thesis pillars are written in the firm's house voice and grounded in this specific opportunity's evidence; risk assessments are calibrated to this specific situation, not lifted from a sector boilerplate. Comparable analysis names the specific reason this comp set was chosen and the reason specific names were included or excluded; no generic comp-table boilerplate. IC-vote-block templates use the firm's configured taxonomy verbatim and never invent new vocabulary. The disclosure block references the firm's actual related-party register, conflict log, and name-screen procedure; no boilerplate disclosure language is inserted without firm-policy confirmation.

Example Output

[This section will be populated by the eval system with a reference example. For now, run the skill with sample input to see output quality.]