Raising capital is critical for private equity firms to fund new investments. A well-crafted investment committee presentation pitch deck is key to securing funding approvals. An effective private equity pitch deck should communicate the investment thesis, target returns, risks, and mitigants clearly. It needs to convince committee members that the deal merits their capital commitment. This article provides best practices for creating a compelling private equity investment committee pitch deck.
Outline the investment highlights and equity story
The pitch deck should start by outlining the investment highlights – the core equity story, value creation opportunities, expected returns and ability to achieve targeted milestones that makes the deal attractive. This section should pique the interests of the investment committee members.
Provide detailed analysis of market dynamics
Back up the investment thesis with detailed analysis of market size, growth trends, competitive landscape, customer profiles and sector trends. This context builds credibility around the opportunity and helps the committee gain confidence in the diligence process.
Showcase operational value creation plan
An important aspect of the presentation is articulating the post-investment operating plan – strategic initiatives around sales, marketing, product development and team building that will help drive growth and profitability. The financial projects should tie back to this operating plan.
Model investment returns across multiple scenarios
The investment committee will want to review financial projections, returns analysis and sensitivity tables to evaluate deal economics. Ensuring alignment between the operating plan and financials as well as showcasing returns in both base case and downside scenarios is imperative.
An effective private equity investment committee pitch showcases the equity story and diligence whilst outlining operational and financial projections across multiple scenarios to demonstrate sustainable value creation from the investment.