IC Memo (Investment Committee Memo)
An IC memo is a written investment case presented to an investment committee summarizing thesis, risks, terms, and recommendation.
Allocator relevance: The core decision document that shapes approvals—its quality reveals underwriting discipline and governance maturity.
Expanded Definition
IC memos translate diligence into a decision-ready format: what is being bought, why now, how it fits the mandate, what can go wrong, what the terms are, and what monitoring will look like. Strong memos are concrete, evidence-backed, and explicit about uncertainties. Weak memos are narrative-heavy, omit downside, or blur facts vs assumptions.
For allocators, IC memos are not just internal paperwork—they are the audit trail of decision-making.
How It Works in Practice
The investment team drafts the memo, includes supporting exhibits (financials, attribution, scenarios), and presents it for debate and approval. Post-approval, the memo often becomes the reference point for monitoring and later re-up decisions.
Decision Authority and Governance
IC memos sit inside governance: they document the rationale and the conditions for approval. Governance requires consistency (same sections, comparable risk framing) to avoid decision drift.
Common Misconceptions
- IC memos are generic templates with low signal.
- A persuasive narrative is enough.
- Once approved, the memo is irrelevant.
Key Takeaways
- IC memos are the decision artifact that anchors accountability.
- Facts vs assumptions must be clearly separated.
- Strong memos improve both approvals and monitoring.