Does anyone have a good private credit case I can review?
Just looking to learn some more about the space and see if anyone has resources available to share in order to do so.
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Do you mean someone’s completed case, or the prompt and info they got?
A completed case is preferred.
got it. i don’t have any to share that wouldn’t be too revealing. however, they will be substantially the same as a PE one. the difference is your merits will be about stability not growth and your risks are “things that will make the business default” not why it won’t make a 3.0x return.
you’ll want to have a lot of credit stats (eg, debt to ebitda, net debt to ebitda, FCCR, interest coverage, senior debt to ebitda, ebitda-capex to ebitda, etc.) and you’ll want to propose covenant or use the ones they give you to set up a covenant test for each year.
in addition to equity returns, you need to calc IRR and MOIC to debt. make a table with rows with the end date for each period (don’t forget partial periods based on trx entry/exit date). make a column for the negative total drawn at close (don’t include undrawn amounts or OIDs) at trx close (if its not the 12/31 in Y0 make a partial period). then make a column each for interest paid, repayments and additional drawdown. the horizontal sum of the rows is your net (out)/inflow for the period and you’ll use XIRR on the dates and net amount to calculate your IRR.
This is great, thank you for the insight :)
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