An investment-committee (IC) memo is how institutions decide whether to do a deal. It's a disciplined format, and knowing its parts tells you what a serious analysis should always include.
The standard sections
- Investment thesis — the one-paragraph case for the deal, and why now.
- Identified risks + mitigants — the honest list, each paired with how it's managed.
- Returns — projected IRR, equity multiple, and cash-on-cash, read together (see the related article on why all three matter).
- Capital stack & sources/uses — who funds what, and who gets paid in what order.
- Sensitivity tables — how the returns move when the key assumptions move.
- Comparable transactions — market evidence the assumptions are grounded.
- Exit assumptions — cap-rate sensitivity against the projected year-N NOI.
Why the format matters. The discipline is the point: every claim is tied to evidence, every risk is named, and the returns are stress-tested. AI can assemble the memo fast — but a human owns the judgment and the sign-off.
Not advice. General educational and operational information — not legal, accounting, tax, or investment advice. George Howell Ward is not a CPA or registered investment adviser and provides no IRS Circular 230 services. Consult a licensed professional in your jurisdiction.
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