Free private markets document template
Co-Investment Evaluation Memo Template
Create an institutional LP private equity co-investment evaluation memo covering sponsor, valuation, returns, governance, risks and portfolio fit.
01
Executive summary
Approve a $12m co-investment in Portfolio Company Opportunity alongside Lead GP Sponsor, subject to final conditions. The opportunity is Proposed Co-Investment.
02
Investment opportunity
Minority growth co-investment. Investment thesis: Mission-critical workflow software benefits from utility modernization, recurring revenue and a differentiated regulatory data set.
03
Company & market
Portfolio Company Opportunity operates in Grid software and services; North America.
04
Sponsor assessment
Lead GP Sponsor will lead the investment and ongoing ownership plan. Confirm its relevant operating resources, prior realization history and alignment with co-investors.
05
Valuation & entry
$420m enterprise value / 12.0x forward EBITDA
06
Returns & sensitivity
Base case: 2.7x gross MOIC and approximately 22% gross annualized return over five years, assuming one initial outflow and one terminal distribution. Downside case: 1.4x gross MOIC if growth slows to 8%, margin expansion is delayed and exit multiple compresses to 10.0x.
07
Diligence completed
Management sessions, customer calls, market study, quality-of-earnings review, legal diligence and sponsor references
08
Structure & governance
18% sponsor ownership; preferred equity with customary downside protections. Governance: Quarterly reporting, information rights, pro rata follow-ons and observer access subject to sponsor consent.
09
Conflicts & allocation
Sponsor allocation is documented; no transaction fee charged to the co-investment vehicle
10
Portfolio fit
Adds a diversified infrastructure-software exposure without increasing manager or sector concentration above policy limits
11
Key risks
customer concentration, regulatory timing, execution against enterprise sales plan and valuation sensitivity
12
Approval conditions
Confirm final customer reference, legal terms and leverage covenant before funding
13
Recommendation
Approve a $12m commitment subject to the stated conditions