Sep 06, 2024
27 Comments
 

Based on the most helpful WSO content, here are some insights and resources for preparing for private credit case studies:

  1. Case Study Format and Expectations:

    • You may be given a case study and a couple of days to complete the model/writeup, followed by a presentation.
    • Common elements include discussing the model, explaining the rationale behind your forecasting and assumptions, and detailing your general model structure.
  2. Key Concepts to Focus On:

    • Debt Comps: To determine the coupon rate and covenants.
    • LBO Case Study Framework: Often used in private credit case studies, similar to PE case studies.
  3. Resources and Examples:

    • Threads and Discussions:
      • A user mentioned having a case study with a direct lending/private debt fund, which involved a 2-hour modeling session followed by a 1-hour presentation.
      • Another user shared their experience with a private credit secondaries case study, which involved analyzing the potential purchase of an LP's position in a credit GP.
  4. Additional Resources:

    • Modeling Tests/Case Studies: Users on WSO often exchange modeling tests and case studies. You can find threads where members are willing to share their materials or exchange them.

For more detailed examples or specific case studies, you might want to reach out to users on WSO who have offered to share their resources. Here are some relevant threads: - https://www.wallstreetoasis.com/forum/private-equity/modeling-testscase…</a">Modeling tests/case studies to share? - https://www.wallstreetoasis.com/forums/specialty-lending-gstpg-any-insi</a>…">Private Credit Case Study

Feel free to PM users who have offered to share their materials for more direct assistance.

Sources: https://www.wallstreetoasis.com/forums/anyone-willing-to-share-a-pe-interview-case-study?customgpt=1, Private Credit Case Study, Modeling tests/case studies to share?, Private Credit Secondaries Case Study Insight, Private Credit Interview Advice

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What are you guys trying to find? Most private credit case studies are somewhat similar. They give you an LP and you have to put together an IC memo and present it w/ Q&A . The memos will typically require the same stuff including an executive summary, investment thesis, key risk and mitigants, a few pages on the company / how they make money, a page on the sponsor, an S&U and cap table (e.g. how much debt you would put on the business), a term sheet w/ pricing and structure, laying out historical financials, and 3 model output pages w/ commentary (upside, base, downside; sometimes two only which would just be base and downside). Then in the appendix, debt and valuation comps.

 

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