For those investment or lending folks out there, it would be great to hear how your IC processes work and what sort of materials are prepared along the way. Below is a template that could make this an informative discussion if we get a couple of contributors to fill.
Firm Type: REPE
Product: LP Common equity, preferred equity, and sub-debt
Investment Process: (i) desktop u/w, and initial DD, (ii) initial IC meeting/approval, (iii) LOI/term sheet, (iv) conduct DD, (v) final IC meeting for final approvals to close/fund
IC Materials: (i) initial meeting: 10-20 page memo, (ii) final meeting: 35-70 page memo (depending on product type / deal complexity
Bump.
This seems interesting to me since I have no idea what goes on.
Bump. Any info would be appreciated.
bump
Firm: Private Credit Product: Underwrite 1L/2L/Unitranche loans for PE Sponsors, will take a small hold and sell majority of the credit to market/other debt funds. Generally we’ll have a small (
Firm Type: Lender
Product: Senior loans (construction, term, subscription lines, revolvers)
Investment Process:
(i) initial due diligence and underwriting. Write a 5-15 page memo (depends on the complexity),
(ii) initial IC meeting/approval,
(iii) LOI/term sheet,
(iv) in depth due diligence which includes getting third party reports (appraisals, property condition reports, construction cost analysis, construction budget analysis, environmental reports, insurance, flood insurance) and writing a more thorough 10-20 page memo,
(v) final IC meeting for final approvals to close/fund
I could provide info on the developer (sponsor side) which is a bit different.
Out of curiosity...if there’s a 20+ page memo...how many of those pages are just sheets from the pro forma?
We would send out a ~30 page packet. ~15 pages were narrative and ~15 were pro forma or exhibits.
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