Private Credit/Direct Lending Interview

Does anyone have some insight on how the DL/PC interview process goes? Are there technicals or a model test? I don’t have any IB background and this would be from public credit to private credit for me, but I don’t really know what to expect in this process. This would be at the analyst/associate level if that helps. Any insight would be much appreciated!

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From a technical standpoint, you will probably be ok with regard to returns analysis and general credit underwriting frameworks. Make sure you are comfortable speaking about asset coverage / LTV etc as some public credit analysis is only focused on relval. They will probably want to ensure you are ok with the basics of transaction oriented work like process, detailed modeling, memo writing, etc. Where your target firm falls on the spectrum of performing -> distressed / spec sits private credit will inform expectations for how much to know about capital structure, levers to pull to increase returns, etc. 

 

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