AI Investment Memo Generator
Investment memos translate complex financial analysis into clear investment narratives for decision-makers. Vespper connects your financial models, comparables, and market research into structured memos with full data traceability.
1. SEC Regulatory Requirements
Investment memos supporting capital raises must comply with securities regulations governing private placements and investor communications.
Regulation D Private Placement
- Rule 506(b) and 506(c) offering requirements and investor qualification documentation
- Form D filing requirements and timing deadlines after first sale of securities
- Accredited investor verification documentation requirements under Rule 506(c)
Securities Act Exemptions
- Section 4(a)(2) private placement exemption qualification criteria
- General solicitation restrictions under Rule 506(b) vs. permitted solicitation under 506(c)
- State blue sky law compliance and notice filing requirements
- Investment memos used in offerings must not contain material misstatements or omissions
- Forward-looking statements require appropriate safe harbor disclaimers to limit liability exposure
2. Financial Analysis Standards
Investment analysis must follow recognized methodology standards to ensure reliability and defensibility of conclusions.
Valuation Methodology Standards
- DCF analysis with documented discount rate derivation and terminal value assumptions
- Comparable company analysis with peer selection criteria and multiple normalization
- Precedent transaction analysis with comparability assessment and premium analysis
CFA Institute GIPS
- Global Investment Performance Standards for performance presentation and calculation
- Quality of earnings assessment methodology and normalization adjustments
- Financial projection assumptions clearly labeled and separately identified from historical data
- Valuation methodology must be documented with enough detail to be independently reproducible
- Financial projections without clearly stated assumptions create investor litigation exposure
3. Fund Documentation Standards
Investment memos supporting fund investments must align with fund documentation requirements and investor protections.
Limited Partnership Agreement Compliance
- Investment mandate and strategy consistency with LPA investment restrictions
- Fee structure disclosure including management fees, carried interest, and deal fees
- Side letter provisions and most favored nation compliance documentation
Private Placement Memorandum Standards
- PPM disclosure standards for investment strategy, risks, and conflicts of interest
- Capital call and distribution waterfall documentation and examples
- Key person provisions and succession planning disclosure
- Investment memos inconsistent with PPM disclosures create breach of fiduciary duty exposure
- Undisclosed conflicts of interest in investment memos can trigger SEC enforcement action
4. Risk Disclosure Requirements
Investment memos must comprehensively identify and disclose material risks to investors.
Material Risk Identification
- Market, credit, liquidity, and operational risk factor identification and quantification
- Industry-specific regulatory and competitive risks material to the investment thesis
- FINRA Rule 2210 communications requirements for fair and balanced presentation
Forward-Looking Statement Protections
- PSLRA safe harbor provisions for forward-looking statements with meaningful cautionary language
- Assumptions underlying financial projections clearly identified and separately presented
- Sensitivity analysis demonstrating impact of key assumption changes on projected outcomes
- Boilerplate risk disclosures without deal-specific risk analysis are insufficient under current SEC standards
- Missing sensitivity analysis for key assumptions weakens safe harbor protections for projections
What happens when documentation falls short
- SEC enforcement action from inadequate disclosure in offering materials
- Investor litigation from material misrepresentation or omission of risk factors
- Fund raising delays from non-compliant documentation requiring revision
- Reputational damage from undisclosed conflicts of interest discovered post-investment
- Regulatory penalties from inadequate accredited investor verification
What this means for your team
How Vespper helps with investment memos
Financial model integration
Upload your financial models, comparable analyses, and market research. Vespper generates narratives with every number traced to its source.
Structured memo output
Generate memos following your firm's template: executive summary, market analysis, financial overview, risk factors, and recommendation.
Data-linked narratives
Every financial figure, projection, and market claim in the memo links to the specific model cell or research document it came from.
Update-friendly workflow
When new data arrives, update source documents and let Vespper identify which memo sections need revision — review only the changes.
Generate your investment memo in 3 steps
Upload financial data and research
Connect financial models, comp tables, market research, management presentations, and prior memos.
Generate memo draft
Vespper drafts your investment memo following your firm's structure, with every claim and figure traced to source data.
Review and present
Review the narrative, verify data links, refine the investment thesis, and export for committee presentation.
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