The work you do
Screen targets. Build LBO models. Run first-pass DD on the ones that move past screening. Sit through expert calls. Build IC memos. Update portfolio monitoring quarterly. Most of the calendar goes into construction; the deal logic is the easy part.
Where Smalt AI fits
The mechanical parts of every PE workflow — sources & uses balancing, debt schedules with interest on beginning balance, returns sensitivity tables, IC memo structure with executive summary and sourced sections — are exactly what an AI coworker should do. You stay on the deal logic; the construction is automatic.
What you'd actually ask it
- "LBO [target] at $42/share, 6.5× total leverage, 5-year hold." Sources & uses (sponsor equity as plug, balanced to the cent), 5-year operating model with bear/base/bull, debt schedule with senior + sub + revolver, cash sweep waterfall respecting tranche priority (no negative balances), returns analysis via XIRR, two minimum 5×5 sensitivity tables on entry × exit multiple → IRR and MOIC.
- "First-pass DD on [target]." Brief covering business model, unit economics, key risks, bull and bear cases. Every claim sourced to a filing, transcript, or analyst note. Open-questions list calling out what the public record can't answer.
- "Build the IC memo for [target]." Executive summary, structured sections (thesis, sources & uses, returns, key risks, recommendation), sensitivity tables embedded, all sourced.
- "Track my portfolio companies' KPIs this quarter." Pull latest filings, transcripts, news; build a one-page dashboard per company with what changed.
Where it's particularly differentiated
Real LBO mechanics. Sources & uses balanced to the cent. Interest computed on beginning balance (no circularity). Cash sweep waterfall respects priority. Debt balances capped at zero with MAX functions. Covenants tracked per year with breach flags. Each piece is exactly what your IB-trained eye looks for.
Long-context due diligence. 1M-token Claude context for entire 10-Ks, four quarters of transcripts, dozens of expert call notes — in one pass. Cross-reference works.
Defensible memos. Every claim in a DD or IC memo has a paragraph-level source. Senior reviewers can click through to verify before the partner reads it.
Where it complements your team
The associate hours saved on construction become hours spent on deal sourcing, on expert calls, on portfolio operating support. Smalt AI compresses the production time on every memo and model; the strategic thinking remains with you.
Related
Financial modeling · Due diligence · LBO · Sensitivity analysis