> ## Documentation Index
> Fetch the complete documentation index at: https://financecontext.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Private Equity Plugin

> Private equity deal sourcing and workflow tools: company discovery, CRM integration, and founder outreach

## What is Private Equity?

Private equity (PE) is a form of investment where specialized firms raise capital from institutional investors (pension funds, endowments, sovereign wealth funds) and high-net-worth individuals, then use that capital to buy companies, improve them, and eventually sell them for a profit. Unlike public market investing where you buy shares on a stock exchange, PE firms typically acquire entire companies or controlling stakes, take them private, and work hands-on to increase their value over a multi-year holding period (usually 3-7 years).

PE firms are structured as partnerships. The firm itself is the **General Partner (GP)**, making investment decisions and managing portfolio companies. The investors who provide capital are **Limited Partners (LPs)**. The GP earns a management fee (typically 2% of committed capital annually) and **carried interest** (typically 20% of profits above a hurdle rate). This "2 and 20" structure aligns interests: the GP makes the most money when investments perform well.

The PE industry manages over $8 trillion in assets globally and touches nearly every sector of the economy. Major firms include KKR, Blackstone, Apollo, Carlyle, Thoma Bravo, and Vista Equity Partners, but the industry spans thousands of firms ranging from mega-funds ($10B+) to lower middle market shops (\$50-500M fund sizes).

## The Fund Lifecycle

<Steps>
  <Step title="Fundraising">
    The GP raises a new fund by pitching LPs on its strategy, track record, and team. A fund typically has a 10-year life with a 5-year investment period. During fundraising, the GP sets a target fund size and begins collecting capital commitments from LPs.
  </Step>

  <Step title="Deal Sourcing & Screening">
    Use `/source` to discover target companies, check your CRM for existing relationships, and draft personalized founder outreach emails. Use `/screen-deal` to quickly evaluate inbound CIMs and teasers against your fund's investment criteria.
  </Step>

  <Step title="Due Diligence">
    Once a deal passes initial screening, the team conducts deep diligence. Use `/dd-checklist` to generate a workstream-by-workstream tracker, and `/dd-prep` to prepare for management meetings, expert calls, and customer references.
  </Step>

  <Step title="Financial Analysis & IC Approval">
    Use `/unit-economics` for revenue quality and cohort analysis, `/returns` to model IRR/MOIC sensitivity, and `/ic-memo` to draft a complete investment committee memo synthesizing all findings.
  </Step>

  <Step title="Post-Close Value Creation">
    After acquiring a company, the real work begins. Use `/value-creation` to build the post-acquisition roadmap and `/portfolio` to monitor performance against plan.
  </Step>

  <Step title="Exit">
    After 3-7 years, the firm exits the investment through a sale to another buyer (strategic or financial), an IPO, or a recapitalization. The proceeds are distributed to LPs after the GP takes its carried interest.
  </Step>
</Steps>

## Key Metrics

Understanding PE performance requires familiarity with a few core metrics:

| Metric                                  | What It Measures                                              | How to Calculate                                     | What "Good" Looks Like                |
| --------------------------------------- | ------------------------------------------------------------- | ---------------------------------------------------- | ------------------------------------- |
| **IRR** (Internal Rate of Return)       | Annualized return accounting for timing of cash flows         | Discount rate that makes NPV of all cash flows = 0   | >20% net                              |
| **MOIC** (Multiple on Invested Capital) | Total return as a multiple of equity invested                 | Exit Equity Value / Equity Invested                  | >2.5x                                 |
| **DPI** (Distributions to Paid-In)      | Cash actually returned to LPs as a multiple of capital called | Cumulative distributions / Cumulative capital called | >1.0x means LPs have their money back |
| **TVPI** (Total Value to Paid-In)       | Realized + unrealized value as a multiple of capital called   | (Distributions + Remaining NAV) / Capital Called     | >1.5x for funds still investing       |

<Info>
  IRR and MOIC can tell different stories. A deal that returns 2.0x MOIC in 2 years has a much higher IRR than one returning 2.0x in 5 years. PE firms typically target both metrics: a minimum IRR (often 20%+) and a minimum MOIC (often 2.5x+).
</Info>

## Commands

<CardGroup cols={2}>
  <Card title="/screen-deal" href="/en/private-equity/commands/screen-deal">
    Screen an inbound deal (CIM or teaser) against your fund's investment criteria
  </Card>

  <Card title="/source" href="/en/private-equity/commands/source">
    Source deals — discover companies and draft founder outreach
  </Card>

  <Card title="/dd-checklist" href="/en/private-equity/commands/dd-checklist">
    Generate a comprehensive, sector-tailored due diligence checklist
  </Card>

  <Card title="/dd-prep" href="/en/private-equity/commands/dd-prep">
    Prep for a diligence meeting or expert call with targeted questions
  </Card>

  <Card title="/ic-memo" href="/en/private-equity/commands/ic-memo">
    Draft a structured investment committee memo
  </Card>

  <Card title="/returns" href="/en/private-equity/commands/returns">
    Build IRR/MOIC sensitivity tables across entry, exit, and growth scenarios
  </Card>

  <Card title="/unit-economics" href="/en/private-equity/commands/unit-economics">
    Analyze ARR cohorts, LTV/CAC, net retention, and revenue quality
  </Card>

  <Card title="/value-creation" href="/en/private-equity/commands/value-creation">
    Build a post-acquisition value creation plan with EBITDA bridge and 100-day plan
  </Card>

  <Card title="/portfolio" href="/en/private-equity/commands/portfolio">
    Review portfolio company performance against plan
  </Card>

  <Card title="/ai-readiness" href="/en/private-equity/commands/ai-readiness">
    Scan the portfolio for the highest-leverage AI opportunities
  </Card>
</CardGroup>

## Skills

Each command is backed by a skill that encodes deep domain knowledge for the workflow.

| Skill                  | Purpose                                                         |
| ---------------------- | --------------------------------------------------------------- |
| `deal-screening`       | Rapid CIM/teaser evaluation against fund criteria               |
| `deal-sourcing`        | Company discovery, CRM check, and founder outreach drafting     |
| `dd-checklist`         | Comprehensive, sector-tailored diligence tracking               |
| `dd-meeting-prep`      | Targeted question lists, benchmarks, and red flags              |
| `ic-memo`              | Structured IC memo drafting from diligence findings             |
| `returns-analysis`     | IRR/MOIC modeling with sensitivity tables                       |
| `unit-economics`       | ARR cohort and customer economics analysis                      |
| `value-creation-plan`  | Post-close EBITDA bridge and 100-day planning                   |
| `portfolio-monitoring` | KPI extraction, variance analysis, and covenant tracking        |
| `ai-readiness`         | Portfolio-wide AI opportunity ranking and replay identification |

## Getting Started

```bash theme={null}
claude plugin install private-equity@financial-services-plugins
```

<Tip>
  Start with `/screen-deal` if you have inbound deal flow to triage, or `/source` if you are proactively building a pipeline in a target sector. The plugin will ask for your fund's investment criteria on first use and remember them for future sessions.
</Tip>

**Author:** Anthropic FSI
**Version:** 0.1.0