Houlihan Lokey Private Debt Advisory

Houlihan Lokey's Private Debt Advisory (PDA) group specializes in advising clients on raising private debt capital. This includes working with private equity sponsors, corporations, and other entities to structure and secure financing solutions tailored to their needs. The group operates within the broader Capital Markets Advisory division and is known for its expertise in navigating complex financing situations, including leveraged buyouts, refinancings, recapitalizations, and growth capital raises.

What to Expect in an Interview for HL's PDA Group in NYC:

Based on the most helpful WSO content, here’s what you should prepare for:

1. Technical Questions:

• Debt Structures: Be ready to discuss different types of debt instruments (e.g., senior secured loans, mezzanine debt, unitranche financing, high-yield bonds) and their characteristics.
• Leverage Metrics: Expect questions on leverage ratios (e.g., Debt/EBITDA, Interest Coverage) and how they impact a company's credit profile.
• Valuation Techniques: Know how to perform DCF, LBO modeling, and understand how debt impacts valuation.
• Credit Analysis: Be prepared to analyze a company's financial statements and assess its ability to service debt.
• Market Trends: Stay updated on trends in private credit markets, such as the rise of direct lending and the role of private equity in driving demand for private debt.

2. Behavioral Questions:

• Teamwork and Problem-Solving: Be ready to share examples of working in teams or solving complex problems under tight deadlines.
• Interest in Private Debt: Demonstrate your understanding of the private debt market and why you're interested in this specific area.
• Client Interaction: Highlight any experience you have in client-facing roles or managing relationships.

3. Case Studies and Practical Exercises:

• You might be given a case study to evaluate a company's financing options or to structure a debt package. This could involve analyzing financials, assessing risk, and recommending a solution.
• Be prepared to build or interpret a simple LBO model or credit analysis during the interview.

4. Soft Skills and Fit:

• HL places a strong emphasis on culture, so expect questions about how you handle pressure, collaborate with others, and align with the firm's values.

Tips for Preparation:

• Brush Up on Financial Modeling: HL is known for its rigorous technical standards, so practice building and interpreting models, especially LBOs and credit analyses.
• Understand the Market: Research recent private debt deals and trends in the industry. This will help you stand out as someone who is genuinely interested and informed.
• Mock Interviews: Consider practicing with professionals or peers to refine your answers and build confidence.

Good luck! If you need more resources, check out WSO's financial modeling courses or interview prep guides—they’re gold for nailing these interviews.

Sources: Q&A: Career start and progression across IBD // Restructuring // PE special sits, Private Equity Recruiting Walkthrough – My Experience, Private Credit is Paradise, Houlihan Lokey reputation (2020), Post-MBA Recruiting At Top Asset Managers / LOs