Private Debt prep
Hi all,
I have an interview coming up for the Private Debt team of a PE firm. I dont have previous experience in acq/lev finance, only in classical M&A, therefore the debt side is quite unfamiliar to me.
Does anyone have a summary of the different debt structures, how they work, how does debt/mezz investing primarily work, how to create value from debt/mezz investments, etc. Would like to be as prepared as possible. Thank you!
structure - senior - cheap, up to 4x leverage depending on company, ~L+500, mezz - expensive, up to 6x, depending on company 12% (blend of cash/PIK), uni - up to 6x, blended rate similar to traditional senior/sub - one debt provider to deal with, likely sliced up behind the scenes to FO/LO, L+700
how to create value in PE cap markets role: get as much debt as possible at as favorable terms as possible, without critically wounding financing partner relationships
Any other questions, pm me.
Quo provident tempora veniam incidunt. Pariatur temporibus eligendi rem pariatur magni est. Dolore inventore fugit et et. Mollitia ad ea quidem alias sunt. Dolorum enim et quia explicabo quia distinctio. Neque soluta ullam ut quaerat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...