Credit Model

Based on the most helpful WSO content, here are some insights and resources to help you approach a private credit/refinancing case study:

1. Credit Modeling Tests:

   • For early-stage credit investments, typically involving PIK terms, 5-year terms, and 11-15% spreads from SOFR, you might want to look at structured investment return profiles. This involves setting up a full 3-statement model.

2. Private Credit Resources:

   • Books and Primers:
     • Moyer's Distressed Debt Analysis: Provides a great perspective on credit investing.
     • S&P's Leveraged Loan Primer: Available as a free PDF on their website.
     • Private Debt: Opportunities in Corporate Direct Lending: Offers insights from a capital allocator's perspective.
   • Credit Agreements: Understanding the legal documentation governing debt investments is crucial. Look for primers on credit agreements from law firms available on Google.

3. Case Study Insights:

   • When preparing for a case study, you might need to discuss the model, explain the rationale behind your forecasting and assumptions, and describe your general model structure. This is similar to PE interview prep and LBO modeling.

4. Debt Fund Modeling in Real Estate Private Equity (REPE):

   • For REPE debt fund recruiting, understanding LP-GP waterfall models and how cash flows are treated differently from standard equity side waterfall models is essential.

5. Restructuring Models:

   • Familiarize yourself with different types of models in restructuring, such as entity priority models, debt waterfalls, 13-week cash flow models, and recap/refi models.

6. Example Models:

   • Reviewing financial models of recent deals, such as LBO or M&A models, can enhance your skills and help you explain your analysis during interviews.

For more detailed guidance, you can refer to the following threads and resources on WSO: - https://www.wallstreetoasis.com/forums/credit-modeling</a">Credit Modeling - https://www.wallstreetoasis.com/forums/private-credit-secondaries-case-…</a">Private Credit Secondaries Case Study Insight - https://www.wallstreetoasis.com/forums/private-credit-resources-and-prep</a">Private Credit Resources and Prep - https://www.wallstreetoasis.com/forums/debt-fund-modeling-in-repe</a">Debt Fund Modeling in REPE - https://www.wallstreetoasis.com/forums/distressed-publicly-traded-credi…</a">Distressed Publicly Traded Credit - Case Study Help - https://www.wallstreetoasis.com/forums/rx-different-types-of-models</a">RX: Different Types of Models - https://www.wallstreetoasis.com/forums/example-models-for-upcoming-ibd-…</a">Example Models for Upcoming IBD Interview

These resources should provide a solid foundation for building your private credit/refinancing model.

Sources: Private Credit Resources and Prep, Private Credit Case Study, Seeking advice on Corporate Banking modeling, Credit Modeling, Debt Fund Modeling in REPE?