Sixth st sa27 specialty lending modeling test
Hey guys, was lucky enough to move forward in the specialty lending process for sixth st this year. I think they’re gonna send over a modeling test which I have 2 hours to do sometime in the coming days. Was wondering if anyone has ever done it or had any insights as to what it might be. Thanks!
Based on the most helpful WSO content, specialty lending modeling tests, especially for firms like Sixth Street, often focus on assessing your ability to analyze credit investments and structured financing scenarios. While there isn't specific information about Sixth Street's exact test, here are some insights from similar discussions:
Credit Modeling Focus: Expect to model a structured credit investment. This could involve terms like PIK (Payment-in-Kind), a 5-year term, and spreads ranging from 11-15% over SOFR. Warrants might also be attached to the investment, so understanding how to model their impact on returns is crucial.
Return Profile Analysis: You may need to calculate the return profile of the investment, incorporating cash flows, interest payments, and potential equity upside from warrants.
Three-Statement Integration: Some tests require integrating the credit investment into a full three-statement model. This means you'll need to understand how the debt impacts the income statement, balance sheet, and cash flow statement.
Time Management: With only 2 hours, the test is likely designed to evaluate your ability to work efficiently under pressure. Familiarize yourself with templates or frameworks that can speed up your process.
Preparation Resources: If you're looking to sharpen your skills, the WSO Elite Modeling Package includes courses on LBO modeling, credit modeling, and financial statement modeling, which could be highly relevant.
If you want to practice, consider reviewing similar credit modeling tests or reaching out to peers who have gone through the process. Good luck!
Sources: Credit Modeling, Specialty Lending (GS/TPG) - Any insights?, Thoughts on Sixth Street
bump. same situation for growth.
im guessing its something new for this year? When i talked with current analysts who had interned there they never mentioned this
Is this for US or London??
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