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Investment Committee

Definition

The formal decision-making body at a private equity firm responsible for approving — or rejecting — proposed investments, acquisitions, add-ons, and significant portfolio decisions. Typically composed of senior partners and managing directors who meet on a regular cadence (weekly, biweekly, or monthly depending on firm size and deal flow). Often referred to by its acronym, IC.

Context

In Ep. 6, Dan Herr uses "coming to investment committee" as shorthand for a deal reaching serious internal review — a milestone that signals pipeline health. He argues that "investment committee presentations" should be one of the key output metrics firms measure for sourcing effectiveness, alongside management meetings, IOIs, and LOIs submitted. Firms that can't remember the last time a great deal came to IC are experiencing the feast-or-famine cycle the episode aims to solve.

Dan also describes IC as an accountability venue, separate from its deal-approval role. He advocates carving out "maybe just five minutes" of monthly IC time to "put the slide up there that has everybody's performance across the team" — a 5–15 minute "name and shame, quick appraisal, and best practice sharing" cycle. This gives sourcing-team performance firm-wide visibility in front of the partnership and creates peer accountability. Dan treats this monthly IC check-in as the third tier of his five-meeting accountability cadence, sitting between quarterly course correction and the weekly one-on-ones. (Ep. 6)