Capital One Leveraged Lending / Leveraged Finance (Cash Flow Underwriting)

Are any of you familiar with Capital One's LF / LL group? It appears to be a mixture of portfolio management and underwriting. I'd like to know how involved the analysts are in the underwriting process, deal flow, potential exit opportunities (i.e., credit fund, lateral to LevFin at bank), interview process, etc. Your insight will be appreciated. I was just hit up by a recruiter for the below in Atlanta. I currently work in credit risk at a large regional bank. Thank you in advance.…

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Comments (35)

Dec 9, 2020 - 2:24am

I took a look. Looks like Credit Risk + Portfolio Monitoring. 1 bullet seems out of place (but would be great if this was a responsibility: Prepare term sheets, commitment letters and fee letters with guidance; basic understanding of credit documents). Exit Opps: to Lev Fin, Loan Capital Markets & Syndicate (Loan Syndication)? Yes - to smaller banks, where sourcing top talent is a challenge,  firms that aren't known for left leading deals, etc. You already have much of the skillset. Credit Fund: Not sure. I would assume less likely. Those opportunities are a small sample size, with different recruiting strategies for each depending on firm (post via Linkedin vs. bespoke recruiting/no Linkedin posting) --they're hard enough to land an interview as is.

Pasted your job description below for everyone's reference

Primary underwriting responsibilities may include:

  • Perform due diligence on industry and company performance; summarize findings & identify risks and mitigants

  • Analyze financial statements and spreads for credit strengths and risks; provide recommendations to mitigate risks

  • Prepare financial modeling inputs with guidance i.e. valuation, pricing, etc.

  • Evaluate structural enhancements and Capital One product offerings with guidance from deal team or relationship manager

  • Write and prepare credit approval documents; participate in presentations to credit officers

  • Work with internal partners to assist with closing process requirements

  • Prepare term sheets, commitment letters and fee letters with guidance; basic understanding of credit documents

Primary portfolio or asset management responsibilities may include:

  • Demonstrate ownership of a portfolio of existing customers with minimal guidance

  • Complete annual reviews and both material and non-material modifications on time with limited supervision

  • Monitor and determine upgrades or downgrades to risk ratings

  • Ensure compliance with credit policies and procedures for existing accounts

  • Respond to requests from internal audit and compliance

  • Ensure portfolio data is accurate, timely, and complete to ensure strong quality and reporting capabilities

  • Associate 3 in IB - CB
Dec 9, 2020 - 11:02am

I have several college friends that work in this specific group and none of them are preparing term sheets. They are underwriting. Relationship Managers are preparing term sheets if they're pitching a bilateral deal and underwriting is simply opining on the terms. Capital One does not lead anything so there's going to be very little negotiation. They're usually just accepting whatever terms the Agent has outlined.

You'll gain solid underwriting skills in this role but know what you're getting into. You'll be preparing credit approval memos while the Sales guys will do 95% of the materials in terms of term sheets, preparing pitchbooks, etc. Analysts aren't doing much of this work as a quick LinkedIn search shows that the bank has tons of junior Relationship Managers (not analyst level) that are probably doing this stuff.

It's a middle office credit role which is not a bad thing. Like I said, I haven't seen Capital One agent many deals so your client interaction is going to be very, very limited unless you're working on a smaller bilateral deal.

  • Associate 2 in PE - Other
Dec 9, 2020 - 11:32am

I worked there (albeit a different levfin group) and this is mostly accurate. Market perception is improving and they're winning some more MM agencies these days, but you shouldn't expect to lead many broadly syndicated deals.

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  • Analyst 1 in RE - Comm
Dec 15, 2020 - 8:51am

I think I know you. And your exit op was pretty solid giving your background. Isn't your firm like 3-4 people and was just started?

if not I'm thinking about the wrong guy lol

Most Helpful
Dec 9, 2020 - 11:29am

Mostly true above, but here to set the record on a couple generalities:

"Cap One does not lead anything" -

1) Direct Lending -  Unitranche "First-out" lending partner - many w/ HPS

-actually they do a ton of direct lending deals w/ HPS - arguably the largest Direct Lender (just closed  $35B  Mezz fund). HPS is comfortable partnering w/ CapOne

2) Cap One is active in healthcare sector - some left leads below - including an LBO, Div/Recap, and several M&A deals

2) Cap One - 2019 left lead deals

BorrowerSigning DateTrancheAmountPurposeIndustry

Deerland Enzymes Inc Oct-19 TL $20 M&A Healthcare

MH Claremont Holdings Sep-19 TL $109 M&A Services

Daniele Acquisition Sep-19 TL $161 LBO Business Services

PathGroup Holding Aug-19 TL $35 M&A Healthcare

MacStadium IncAug-19TLA$22M&ATechnology

Saol International LimitedAug-19TL$60M&AHealthcare

MMAC 150 Murfreesboro TN LLCMay-19TL$46M&AHealthcare

Aurora Senior Housing OwnerMay-19TL$207M&AServices

Rome Medical Properties LPMay-19TL$37M&AServices

Kasada LLCApr-19TL$100M&ARestaurants

Moberg Pharma North America LLCMar-19TL$49LBOHealthcare

Collagen Matrix IncMar-19TL$20Dividend RecapHealthcare

Black Mountain Systems LLCJan-19TLA$15M&ATechnology

3) Cap One - 2019 "right leads" - Joint Lead Arranger/Joint Bookrunner (league table credit /

-if its an underwriting for LBO- still get the same underwriting fee % as the left lead (2.25% - RC/ 1L TLB / 2.75% - 2L TLB ), so right-leads for inv. banks are important for hitting budget and ultimately contribute to bonuses. Yes, the Cap Ones, Societe Generales, BNPs etc will have more rights than lefts, but you'll still get the left lead experience under your belt here & there

Cap One - 2019 right leads (11 LBO deals, among others)

Nexstar Broadcasting GroupSep-19TakeoverMediaTerm Loan B   3,065,000,000

Global Payments IncJul-19MergerBusiness ServicesRevolver/Line >= 1 Yr.   3,000,000,000

Global Payments IncJul-19MergerBusiness ServicesTerm Loan A   2,000,000,000

PCI Gaming AuthorityMay-19TakeoverLeisure and EntertainmentTerm Loan B   1,300,000,000

VSP Optical Group IncAug-19Acquis. lineHealthcareTerm Loan   1,200,000,000

Nexstar Broadcasting GroupJun-19Acquis. lineMediaBridge Loan   1,120,000,000

Nexstar Broadcasting GroupSep-19TakeoverMediaTerm Loan A      675,000,000

Alliant Holdings I IncMay-19Dividend RecapFinancial ServicesTerm Loan B      530,000,000

Sabre Industries IncApr-19SBOUtilitiesTerm Loan B      445,000,000

Red Ventures LLCJul-19Acquis. lineBusiness ServicesTerm Loan B      425,000,000

OEConnection LLCSep-19SBOAutomotiveTerm Loan B      422,000,000

CLP Healthcare Services IncOct-19LBOHealthcareTerm Loan B      400,000,000

Compassus Intermediate IncDec-19LBOHealthcareTerm Loan B      400,000,000

AccentCare IncJun-19SBOHealthcareTerm Loan B      355,000,000

R1 RCMJun-19Debt Repay.HealthcareTerm Loan A      325,000,000

Golden NuggetOct-19Acquis. lineRestaurantsTerm Loan B      300,000,000

Accel Entertainment LLCNov-19MergerLeisure and EntertainmentRC      240,000,000

VSP Optical Group IncAug-19Acquis. lineHealthcareRevolver/Line >= 1 Yr.      250,000,000

Accel Entertainment LLCNov-19MergerLeisure and EntertainmentRC      125,000,000

Accel Entertainment LLCNov-19MergerLeisure and EntertainmentRevolver/Line >= 1 Yr.      100,000,000

Accel Entertainment LLCNov-19MergerLeisure and EntertainmentStandby Letter of Credit        10,000,000

LegalShield [ex-PRE-PAID LEGAL SERVICES INC]Mar-19Dividend RecapServicesTerm Loan B      175,400,000

Zix CorporationFeb-19TakeoverShippingTerm Loan A      175,000,000

Deerland Enzymes IncOct-19M&AHealthcareTL$20

CF Sauer CoAug-19LBOBeverage, Food, and Tobacco ProcessingTerm Loan A      110,000,000

MH Claremont Holdings LLCSep-19M&AServicesTL$109

Pediatric Associates Holding Co LLCMar-19LBOHealthcareTerm Loan      105,000,000

PCI Gaming AuthorityMay-19TakeoverLeisure and EntertainmentRevolver/Line >= 1 Yr.      100,000,000

Abode Healthcare IncAug-19SBOHealthcareTerm Loan B      100,000,000

R1 RCMJun-19Debt Repay.HealthcareRevolver/Line >= 1 Yr.      100,000,000

Addus Healthcare IncSep-19TakeoverHealthcareRevolver/Line >= 1 Yr.        50,000,000

Daniele Acquisition LLCSep-19LBOBusiness ServicesTL$161

Daniele Acquisition LLCSep-19LBOBusiness ServicesRevolver/Line >= 1 Yr.        20,000,000

PathGroup Holding CorpAug-19M&AHealthcareTL$35

US Radiology SpecialistsAug-19Acquis. lineHealthcareDDTL      230,000,000

US Radiology SpecialistsAug-19Acquis. lineHealthcareDDTL      190,000,000

US Radiology SpecialistsAug-19Acquis. lineHealthcareRevolver/Line >= 1 Yr.        45,000,000

Orgain LLCNov-19LBOBeverage, Food, and Tobacco ProcessingTerm Loan A        75,000,000

Caliburn International LLCMar-19Dividend RecapFinancial ServicesTerm Loan A        75,000,000

MacStadium IncAug-19M&ATechnologyTLA$22

Saol International LimitedAug-19M&AHealthcareTL$60

Dovel Group LLC (The)May-19LBOTechnologyTerm Loan        70,000,000

Octo Consulting Group IncApr-19LBOBusiness ServicesTerm Loan B        67,500,000

Sabre Industries IncApr-19SBOUtilitiesRevolver/Line >= 1 Yr.        65,000,000

LegalShield [ex-PRE-PAID LEGAL SERVICES INC]Jul-19Acquis. lineServicesTerm Loan B        60,000,000

Saol International LimitedAug-19Acquis. lineHealthcareRevolver/Line >= 1 Yr.        10,000,000

KabaFusion Holdings LLCJan-19LBOHealthcareTerm Loan B        60,000,000

Octo Consulting Group IncJul-19Acquis. lineBusiness ServicesTerm Loan B        53,000,000

Compassus Intermediate IncDec-19LBOHealthcareRevolver/Line >= 1 Yr.        50,000,000

Orgain LLCNov-19LBOBeverage, Food, and Tobacco ProcessingRevolver/Line >= 1 Yr.        50,000,000

OEConnection LLCSep-19SBOAutomotiveRevolver/Line >= 1 Yr.        50,000,000

OEConnection LLCSep-19SBOAutomotiveDelay Draw Term Loan        40,000,000

Pond Holdings IncJul-19LBOServicesTerm Loan        35,000,000

Discovery Practice Management IncJun-19Acquis. lineHealthcareDDTL        20,000,000

MMAC 150 Murfreesboro TN LLCMay-19M&AHealthcareTL$46

CF Sauer CoAug-19LBOBeverage, Food, and Tobacco ProcessingRevolver/Line >= 1 Yr.        25,000,000

Zix CorporationFeb-19TakeoverShippingRevolver/Line >= 1 Yr.        25,000,000

Aurora Senior Housing OwnerMay-19M&AServicesTL$207

Pediatric Associates Holding Co LLCMar-19LBOHealthcareRevolver/Line >= 1 Yr.        20,000,000

TAIT LLCOct-19Acquis. lineLeisure and EntertainmentTerm Loan        20,000,000

Pond Holdings IncJul-19LBOServicesRevolver/Line >= 1 Yr.        20,000,000

Dovel Group LLC (The)May-19LBOTechnologyRevolver/Line >= 1 Yr.        20,000,000

Rome Medical Properties LPMay-19M&AServicesTL$37

Kasada LLCApr-19M&ARestaurantsTL$100

Abode Healthcare IncAug-19SBOHealthcareRevolver/Line >= 1 Yr.        20,000,000

Bristol Hospice Holdings IncMar-19Acquis. lineHealthcareTerm Loan        16,300,000

Abode Healthcare IncJun-19Acquis. lineHealthcareTerm Loan A        15,500,000

Moberg Pharma North America LLCMar-19LBOHealthcareTL$49

KabaFusion Holdings LLCJan-19LBOHealthcareRevolver/Line >= 1 Yr.        15,000,000

Octo Consulting Group IncApr-19LBOBusiness ServicesRevolver/Line >= 1 Yr.        12,500,000

Moberg Pharma North America LLCMar-19LBOHealthcareRevolver/Line >= 1 Yr.        10,000,000

Collagen Matrix IncMar-19Dividend RecapHealthcareTL$20

R2C SA LPMar-19Acquis. lineFinancial ServicesRevolver/Line >= 1 Yr.      150,000,000

Zix CorporationFeb-19TakeoverShippingDelay Draw Term Loan        10,000,000

Vyanet Operating Group IncFeb-19TakeoverServicesRevolver/Line >= 1 Yr.        60,000,000

Black Mountain Systems LLCJan-19M&ATechnologyTLA$15

Dec 14, 2020 - 11:09pm

What's this right vs left?

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.

  • Associate 3 in IB - CB
Dec 9, 2020 - 11:43am

Yeah I work at a larger bank in a product group but C1 participates in a lot of our deals. Most of the deals listed are in the healthcare space which is very strong but TMT there is mediocre. 

I've generally worked with C1 across most groups there and IMO the strongest groups would be Healthcare, Financial Sponsors, ABL. TMT seems ok.

Dec 9, 2020 - 1:41pm

I'm unsure if you have related experience, but the recruiter told me at the beginning of the convo b/t 85-95 w/o bonus. This is for ATL. It may be higher or lower depending on which region you reside and group you are in (not exactly sure). I'm in the TMT process.  According to the above posts, it seems the HC group is top notch. Which HC group are you interviewing for, real estate team? good luck.

Dec 14, 2020 - 11:05pm

There's a lot of misinformation on this forum about credit / lending. Let me clarify, corporate banking / commercial banking (relationship/coverage) don't do any of the credit structuring at BB + Wells Fargo. They make pitch books that include term sheet CREATED by underwriting, which is a product team. There's dedicated credit analyst / underwriter that prepare the term sheets. I think the misperception on why people believe relationship manager prepare term sheet is because term sheets tends to be market and doesn't change dramatically from deal to deal. Therefore, RM may have a standard term sheet as a talking point.

This is from my own experience working in ABL at a top lender who agent most of the deals (we typically make the market) and I know this is true across my peers at IB credit. I can't speak to middle market commercial and small business. Corporate banker / commercial banker don't do any of the modeling at my firm, they literally just pitch and manage relationship. Most of them have deep knowledge in credit, however they don't make the final decision. Everything is run through a credit committee. This may differ if you started in the business 4-5 years ago, but this is typically the case in most firms now. I had a recruiter reach out to me for an associate role at the same tech team in Atlanta, you will be on the deal team with direct client contact. 

  • Analyst 1 in RE - Comm
Dec 15, 2020 - 8:49am

I worked at capital one previously in their crp program. Just. Few observations while I was there. Like they said you won't be creating term sheets or negotiating. You typically get a CIM from the RM and then credit puts together an internal report for the risk committee so that they can decided to do the deal or not. When capital one is leading a deal they aren't negotiating or creating a term sheet that is done entirely by the syndications desk. Underwriting puts together slides for the risk committee too approve. They can get on a call with the rm and ask them questions about there business. 

Capital One doesn't like to do other deals banks would because of doc leakage. Even though all the other banks are doing it like jpm bofa etc.

TMT is technically housed under Healthcare because there portfolio isn't big enough yet... They seem to have hired a lot of corporate bankers from STRH

From UW there isn't many exit ops, the best exit ops I've seen are coming from the Orignators/RMs since they have all the industry contacts for the most part.

underwriting  at capital one is what many call credit risk at JPMC.

The firm has great culture and it seems a lot of people have came there after grinding it out at other shops and now want to relax this is more so on the capital markets side not so much UWPM.

Itll be dam near impossible to switch to the RM side coming from Underwriting because there's not a program in place like at other banks where you start out as an analyst/associate and have the option to go into UW or RM. 

Also did the recruiter say 85-95 plus bonus? Or did she say that you wouldn't get a bonus in that role? Just for a point of reference they start there analyst in Houston at 75k and give them a stipend for living in other cities like Chicago and New York. 

  • Analyst 1 in RE - Comm
Dec 15, 2020 - 8:56am

Forgot to add if capital one is leading a syndication credit nor the RMs won't make the lbo model that goes out to the other lenders capital markets will. An MD from Capital Markets told me, "they don't have the sophisticated modeling skills to do it that we have on this side of the house"

  • Associate 2 in PE - Other
Dec 15, 2020 - 9:49am

I've posted elsewhere in this thread but I did not have the same experience as this guy. I'll say up front that all these points may vary heavily between groups.

I was on the underwriting side and was very involved in negotiating legal docs (or pushing back on terms) for all left/right leads. We also had frequent direct contact with financial sponsors and management teams.

Asset leakage point is mostly true as they seem to take the issue more seriously than other banks. The flip side of this is you will learn a ton about legal documentation early in your career which puts you at an advantage to peers.

There isn't a clear path to the coverage side from underwriting but I saw it happen many many times. Build relationships internally and it's fairly easy to move laterally there. This is not unique to capital one. 

To address the reply about where the modeling expertise lies - again, not my experience. Speak for yourself lol

  • Associate 1 in CB
Dec 15, 2020 - 10:37am

Which groups are the most active? I had a Cap One recruiter reach out to me in the past on a exploratory basis for future opportunities but I couldn't find a ton online about which groups were the best or had the most deal flow. Healthcare? ABL? Financial Sponsors?

  • Associate 2 in PE - Other
Dec 15, 2020 - 11:01am

Healthcare and generalist Financial Sponsors (Diversified Industries) are their strongest and most competitive groups. ABL as a whole is segmented into generalists and HC/TMT, both of which have healthy deal flow. Depends on what you're interested in doing

Dec 15, 2020 - 8:51am

That's very interesting. My team don't do any TLA, so I can't speak to that. However, in some deals it will be ABL revolver plus TLB. Lev Fin will do the TLB portion. And, the people who does ABL syndication also sit in Lev Fin. I was always under the impression that most of the BB have a similar structure, where credit and relationship is broken out into 2 different teams. I have done a lot of deals with JPM/BofA/Wells/Citi in both participant / agent capacity and I was always under the impression that's also how they function. (I also work in one of the listed firms.)

I guess for the benefit of the OP, I have spoken with the recruiter at CapitalOne who reached out to me on LinkedIn about the role last year. I briefly got on the phone with him, but didnt proceed forward because I don't want to stay in credit long term. From the conversation, this is a front office role and the 3 MDs heading the team was ex GE capital, Antares and SunTrust.

  • Analyst 1 in RE - Comm
Dec 15, 2020 - 11:53am

Forgot to add that they have this weird mentality that they want everyone to start put in credit and do it for atleats 5 years before becoming a Junior RM. I'm sure this make sense but IMO its dumb considering other banks have programs to prepare analyst to become RMs. Anyone who wants to be on the relationship side could just leave to one of these other banks. Also, during my time there I talked to a lot of Senior analyst and associated and everyone said they would want to be on the relationship side but that there isn't that many spots. This came from someone on their healthcare team. 

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