What to expect from debt fund interview?
Have any monkeys out there gone through a debt fund interview? I assume there won’t be any waterfalls or anything of the sort. If anyone could give any tips or advice that would be awesome. Also any questions that I may encounter.
background on myself; worked in equity for a year and debt for 6 months at the same firm. This is for an associate 1 role. Thank you WSO community
In a similar position … following
Deal experience, how you think about an investment opportunity, and possibly a case study.
Anymore details? For example; mental math “here’s cash flow, noi, ltv what’s the cash on cash?” Or even questions about the capital stack. Just a little more detail from you or anyone could be super helpful.
In similar position. Good luck and post how it went!
Since most debt funds use leverage, I would know how that math works.
Example. You have a 100mm loan at L+500. Your leverage source is going to give you 75% leverage at L+250, matched floors. What is the debt fund's leveraged spread? Answer is L +1250. The math on that is: 3 turns of leverage at +250 each turn (spread between loan and leverage rates)=750 + 500 on the initial equity = 1250.
Otherwise I think the big things to talk about are deal experience, opportunities that you see/like, etc.
This is extremely helpful thanks fam
What do you mean by "turns” and how do you figure 3?
Assumenda iste mollitia ipsum omnis sint dolorem. Dicta nam laborum vel voluptas numquam consectetur. Soluta neque illo officia quod. Dolorem vel possimus pariatur eum omnis autem dolore. Temporibus id debitis nemo vel et occaecati voluptas.
Itaque laudantium sapiente rerum soluta fuga quia. Aut quidem quo aut voluptatum quisquam. Sunt dolores fuga sed dolorem fuga.
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...