Private Credit Prep/Materials

For private credit interview preparation, here’s what you need to know based on the most helpful WSO content:

Key Preparation Areas:

1. Private Credit-Specific Concepts:

   • While private credit interviews share similarities with PE prep, there are three unique areas to focus on:
     • Debt Comps: Understand how to determine coupon rates and covenants.
     • Credit Thesis: Be prepared to discuss deals with a focus on credit metrics rather than equity returns.
     • Debt Capacity Analysis: Use LBO models to illustrate the debt capacity of a business, excluding equity returns.

2. Modeling Prep:

   • You’ll likely need to build an LBO model but with a private credit focus:
     • Spread comparable companies’ capital structures (e.g., revolvers, term loans, bonds).
     • Calculate leverage ratios based on Adjusted EBITDA.
     • Justify your assumptions on debt levels, leverage, and interest rates.

3. Case Studies:

   • Case studies often involve:
     • A 2-hour modeling session followed by a 1-hour presentation.
     • Creating a write-up and presenting your rationale for forecasting, assumptions, and model structure.
   • Focus on being concise and clear in your presentation, as time constraints are common.

4. Resources:

   • If you’re familiar with PE prep, leverage that knowledge, especially around LBOs.
   • Consider reviewing financial modeling templates and guides available on WSO, such as:
     • LBO Modeling Course
     • Financial Statement Modeling
     • Excel Modeling

5. Additional Tips:

   • Be ready to discuss your credit thesis and back up your assumptions with data.
   • Practice explaining your model and assumptions clearly, as this is often a key part of the interview.

If you’re looking for specific case studies or templates, WSO offers a variety of resources, including financial modeling templates and interview prep courses.

Sources: Private Credit Resources and Prep, Private Credit Interview Advice, Private Credit Case Study