PC Direct Lending Process

For a direct lending analyst or associate position, particularly in firms with $100 billion AUM in NYC, the process typically involves the following steps:

1. Initial Screening: This is often a behavioral or technical phone screen to assess your fit and basic knowledge.

2. Case Study or Modeling Test: The modeling test is a critical component. While it may resemble a standard LBO model in structure, it is tailored to focus on credit-specific metrics rather than equity returns. Based on the most helpful WSO content, the deliverable often includes:

   • Modeling the credit, including base-case and downside-case scenarios.
   • Structuring the credit and pricing it.
   • Identifying key provisions to include in the credit documents.

3. Interviews with the Investment Team: These are typically more in-depth and may include hypothetical investment scenarios. You might be asked to:

   • Analyze an opportunity.
   • Identify key risks and opportunities.
   • Propose a structure and pricing.
   • Provide a rationale for your decisions.

4. Final Presentation: If you advance, you may need to present your findings, such as a credit memo or detailed analysis, to the investment committee.

The modeling test is not a standard LBO model. Instead, it focuses on credit metrics like DSCR, LTV/LTC, Debt Yield, and downside protection. The goal is to evaluate your ability to assess creditworthiness and structure deals effectively.

Sources: Q&A: Non-target → Top Bucket SSG Private Credit/Direct Lending, Specialty Lending (GS/TPG) - Any insights?, Credit Analyst Q&A, Credit Analyst Q&A