How does modeling work in LevFin banking?

I'm currently a college sophomore and I've taken an interest in leveraged finance investment banking. I've seen multiple model templates (like the LevFin credit-focused 3-statement models that would be used for the bank's internal underwriting approval screens), but none of the templates I've seen had many sections for actual assumptions.

I understand how the models work mechanically (i.e. I know the different forms of debt and how the debt schedule feeds through the statements, I know how to check that the key leverage ratios are populating correctly, etc.), but I guess I don't understand where you'd typically get your drivers. For example, on one of the templates the income statement had rows to break out revenue by business segment, but there was no pre-built section where you'd build out detailed (or really any) assumptions/drivers to calculate those top-line numbers. 

I know that for sponsor deals, the client would often have assumptions or maybe even an entire model to give you. But what if they don't, or what about when the client is a regular company? And when you make your "downside" case, are you just arbitrarily lowering free cash flow to see what it'd look like? Or are you making a formal revenue build?

I also know that some LevFin groups are more markets/execution-focused and don't do much modeling at all; I'm not really talking about these teams. 

1 Comments
 

Minima ut voluptate aut sit tempore. Et nostrum aut hic illum.

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

Career Advancement Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

November 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

November 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (29) $183
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (77) $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

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...”