Key takeaways
- The committee decides; the deal team recommends.
- Voting rules (unanimity, majority, a veto) come from the fund's documents.
- Record the decision, the reasons and any dissent with the memo it was based on.
How an investment committee meeting runs
- 1The deal team circulates the memo and supporting evidence before the meeting.
- 2The sponsor summarises the case, the terms and the open risks.
- 3Members ask questions, often starting with the weakest claim.
- 4The committee decides: invest, pass, or more work with named questions.
- 5Someone records the decision, the reasons and any dissent.
An example from a small fund
At a fictional three-partner seed fund, any partner can bring a deal, two of three must approve, and one partner may ask for a week's delay once per deal. The memo is frozen the day before, so the discussion is about the same document everyone read.
Where the committee sits in a fund's process
The committee is the last stage before a term sheet or closing, but its questions shape diligence earlier. Teams that know what the committee always asks collect that evidence sooner. Committee features in Delsivo, including memos, frozen packets, independent reviews and recorded decisions, are planned for a later release.
Common confusions
- Investment committee versus board: a company's board governs the company; a fund's committee decides the fund's investments.
- Investment committee versus advisory committee: an LP advisory committee usually reviews conflicts and fund matters, not individual deals.
- A committee vote is not a guarantee of closing. Diligence and documents can still change the outcome.