The Challenge

An American Fund-of-Funds follows a rigorous due diligence process when evaluating potential investments. This process involves:

  1. Analyzing large volumes of unstructured and structured data, including documents from General Partners (GPs), internal research, meeting notes, and site visit reports.
  2. Manually compiling this data into a structured investment memo, following a predefined format and specific writing style.
  3. Spending one to two months per memo, making memo creation a time-consuming and resource-intensive task.

The Solution

The firm leveraged Dcipher Analytics’ Report Generator to automate the first draft of their investment memos, leveraging AI-driven text analytics and customized report generation.

How It Worked

  • Fine-tuning large language models (LLMs) – Dcipher trained AI models on the firm’s previous investment memos to match the correct style, structure, and content expectations.
  • Automated Report Generation – Dcipher’s AI-powered Report Generator created a first draft of each memo, incorporating key insights from the data room.
  • Source Traceability – Every statement in the AI-generated memo was linked back to its original source, ensuring that analysts could validate and refine the content easily.

The Results

  • Accelerated investment memo creation – Analysts saved approximately one month per memo, significantly reducing workload.
  • Improved efficiency – Analysts could focus more on high-value analysis and decision-making rather than spending time on manual data synthesis.
  • Maintained consistency and accuracy – The AI-generated memos followed the firm’s established style and structure, ensuring alignment with past reports.
  • Enhanced due diligence workflow – The firm streamlined its investment evaluation process, allowing for faster and more informed decision-making.

The Impact

By leveraging Dcipher Analytics, this American Fund-of-Funds transformed its investment memo process—cutting research time in half, ensuring data traceability, and allowing analysts to focus on critical investment decisions rather than time-consuming document preparation.

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