How to Write Your Investment Thesis

What’s up, everyone? Today, I want to teach you how to write your investment thesis for your fund!

Some of you may understand how a fund works and how to launch and scale one, but you might not know what to invest in!

Fund Launch Formula

Let’s review the formula real quick…

  1. Find your deal
  2. Frame your fund
  3. Pitch investors (start over at step 1 if necessary)
  4. Get legal docs in order

“Bridger, I understand that, but how do I find the deal? What types of deals do I look for?”

I can’t tell you exactly which deal to take, but I can give you some suggestions that will help out.

What’s an Investment Thesis?

It’s your argument about why you are taking someone else’s money and investing it for them.

How can you beat the market? How will it be safer than the market?

Real World Examples

A multi-billion-dollar fund was built by Long-Term Capital Management in the 90s.

Their investment thesis was simple: They would short the standard 30-year bond by making a 29.75-year bond that was more reliable. It was as simple as that!

Make it simple, yet effective!

Lean into your team’s experience. If you buy gyms, funeral homes, or have another niche, then focus on that!

I know someone who bought 4 or 5 funeral homes for $8M, sold it to a private equity firm for $15M, then distributed the returns between his investors and himself.

Because he did an 80/20 split, he took home $1.4M. Not bad!

He found his niche, articulated all in his investment thesis, and made it happen.

Frame your Fund

After you find your deal, you could…

  1. Go to a private equity fund
  2. Ask them what businesses they want to buy
  3. Find those particular businesses and buy them

Some P.E. funds might be too big, so find one that’s right for you.

These examples relate to value-add projects and private equity funds, but the principles are the same across the board.

No Operational Experience?

Go partner with someone who does.

Instead of studying AI for the next 20 years, just go partner with someone who already knows the industry!

Like I said in my video…

“It is faster and more efficient to just find someone who has the experience/knowledge that you lack!”

This way, your investment thesis will be backed up…

“We’ve got this team that has been in ___ industry for ___ number of years and that’s why we’ll be able to do ___.”

The best thing you can do is go out and “date” different investment theses. Get to know them and get acquainted with all the diverse types!

Here’s some dating ideas…

  • Call up 30 P.E. funds and ask them what they’re looking for
  • Ask banks what they need
  • Go find buyers that would be interested in buying what others are trying to sell


There are endless ways to write an investment thesis, so go find what works best for you!

Find your niche or find your team.

Check out my video that goes more in-depth!


Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author.

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