Private Credit Case Study - In Person

Based on the most helpful WSO content, in-person private credit case studies are typically more time-constrained and focused compared to take-home versions. Here's what you can expect:

1. Time Constraint: These case studies often range from 90 minutes to 3-4 hours. The shorter timeframe means you'll need to work efficiently and focus on the essentials.

2. Deliverables:

   • CF Model: You'll likely need to build a basic cash flow model, including an income statement, cash flow, and debt schedule. Emphasis is often placed on credit metrics like leverage, DSCR (Debt Service Coverage Ratio), and fixed-charge coverage.
   • Business Overview: Provide a concise summary of the business, including its revenue drivers, margins, and competitive positioning.
   • Key Risks and Mitigants: Highlight potential risks (e.g., customer concentration, cyclicality) and propose mitigants.
   • Investment Thesis: Articulate why this is a good credit investment, focusing on downside protection, recurring revenue, and recession resistance.
   • Structuring/Term Sheet: You may need to suggest where to invest in the capital structure (e.g., senior, unitranche, mezzanine) and outline key terms like covenants and pricing.
   • Due Diligence Items: Identify areas requiring further diligence, such as customer contracts, industry trends, or management quality.

3. Presentation: After completing the analysis, you'll present your findings to a panel. Be prepared to defend your assumptions, explain your rationale, and answer questions about your model and thesis.

4. Focus Areas:

   • Downside Protection: Credit investing prioritizes stable returns and capital preservation, so focus on risks and how the structure protects against them.
   • Efficiency: Given the limited time, prioritize key insights and avoid overcomplicating the model or analysis.

5. Preparation Tips:

   • Practice building a simple CF model under time constraints.
   • Review debt primers and familiarize yourself with credit metrics and structuring.
   • Be ready to discuss why credit investing appeals to you and how it differs from equity investing.

Good luck with your case study!

Sources: Private Credit Case Study, Private Credit Interview Advice, Case study interview for MBB consulting - 24 of my best tips on how to get in, Private Credit Secondaries Case Study Insight, Q&A: Corporate Banking to FAANG CD