Revolver ABL Modelling

Based on the most helpful WSO content, Revolver Asset-Based Lending (ABL) modeling is typically not handled by LevFin teams. Instead, it is more likely to be managed by coverage or M&A groups. Here are some key points:

• LevFin Groups that DO NOT model: GS, MS, JPM, Citi, Barclays.
• LevFin Groups that DO model: BAML, CS, DB, UBS.
• Coverage Group Role: The coverage group often builds the operating model (revenue/expense assumptions), while the LevFin group focuses on cash flow modeling and debt repayment models.
• Non-Modeling LevFin Groups: These groups do not touch the model at all. They focus on tasks like building cap tables, spreading debt comps, updating market slides, and covenant comps.

In summary, ABL modeling is generally more aligned with the responsibilities of coverage or M&A groups rather than LevFin teams.

Sources: Lev Fin Outlook & Best Groups 2020, JPM Lev Fin vs. BAML Lev Fin, BAML Emerging Growth and Regional Coverage, Leveraged Finance – 2017 Update, BAML IB Groups (NYC)