Joining a Private Debt shop from vanilla LevFin. Any resources for learning the basics of mezz/pref/subdebt?

I'm starting a new role at a credit shop that is focused on lending up and down the cap structure. My read is they do everything from unitranche down to mezz, pref, and equity coinvests. I'll be joining from a bank's LevFin team where I really only worked on more vanilla stuff like 1L term loans, bonds, and the occasional 2L term loan. I obviously know these instruments sit lower in the cap structure, but I don't know anything about their characteristics.

Can anyone provide any basic info on mezz/pref so I'm not totally behind? Key things I'm blind on are the following: How it's priced (Spread+OID like a 1L/2L?) Are most of these PIK? Typical size relative to EBITDA (turns of leverage)? Are these usually taken down by one party or syndicated? Are grids/term sheets somewhat similar to loan commitment papers/indentures or totally different? I assume covenants are similar to term loans but any nuances to be aware of?

Just trying to find the very basics so I'm not totally behind. Thanks!

1 Comments
 

Ut dolor dolorum iure reprehenderit accusantium quia. Ipsam veniam est consequuntur earum eaque omnis vitae. Sunt doloremque perferendis libero id qui commodi.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (77) $151
  • Intern/Summer Analyst (71) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”