Private credit 2hr case study - what to expect?

For a 2-hour private credit case study, especially for a VP direct lending role, here's what you can expect based on the most helpful WSO content:

1. Case Study Structure:

   • You'll likely be given a target company or investment opportunity to evaluate.
   • The focus will be on building a simple financial model (e.g., debt comps, cash flow projections) and preparing a concise investment thesis.
   • Expect to articulate your assumptions clearly, as this is a key part of the evaluation.

2. Key Areas to Prepare:

   • Debt Comps: Be ready to determine coupon rates, covenants, and other credit terms.
   • Modeling: Build a straightforward model focusing on revenue drivers, EBITDA, free cash flow, and sensitivity analyses. A full three-statement model is usually unnecessary.
   • Investment Thesis: Prepare a clear recommendation, including valuation, key risks, mitigants, and next steps.

3. Presentation:

   • The 1-hour presentation will likely involve walking through your model, explaining your rationale, and defending your assumptions.
   • Be prepared for technical questions and challenges on your thought process.

4. Tips to Differentiate Yourself:

   • Research the fund's recent deals and strategy. Highlight how your approach aligns with their investment philosophy.
   • Focus on structured thinking and the ability to ask insightful questions about the case.

For additional insights, you might find this thread helpful: https://www.wallstreetoasis.com/forums/specialty-lending-gstpg-any-insi</a>…">Private Credit Case Study.

Sources: How would you approach a 4 hour case study?, Private Credit Resources and Prep, Private Credit Case Study, Private Credit Secondaries Case Study Insight, Q&amp;A: Currently at a Credit Hedge Fund