Distressed HF Internship Interview Preparation (Undergraduate)

I'm an undergraduate student (sophomore) at a target, and I have an upcoming first round interview with a distressed HF (Anchorage/Silver Point/Centerbridge/etc.) for a junior summer internship and a potential full-time role afterward. I've browsed the forums and found the ones about "Credit Hedge Fund" and "Hedge Fund Careers Guide..." to be quite useful.

However, much of the advice in the forums seems to be aimed towards current or exiting IB analysts. I have around 2-3 weeks to prepare, and I'm not sure what I should focus on during this short time to maximize my chances. I didn't think recruiting would start this early...

My question is whether I should focus on preparing myself as I would for any other IB interview or if I should go about this differently. I'm thinking if I should also read Moyer or past articles from the Distressed Debt Investing blog. But again, I'm quite limited in my time so I don't think I'd have time to study everything and, more importantly, understand everything. Any advice would be much appreciated. Thank you.

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Comments (9)

Mar 17, 2018 - 7:31pm

Interested to know about this as well and whether the Moyer book is worth the read. At least from my experience, HL Rx guide helped with Rx interviews for banking but not sure how relevant it will be with a distressed debt interview. From my singular interview experience at one of the firms you mentioned, it was heavy on asking about general investing questions (Facebook or General Motors) or on questions about debt.

Mar 23, 2018 - 6:31pm

Focus on having good answers on why you want to do investing, why distressed debt etc.
Would also look at your general banking interview prep with focus on cash flows. I'd guess they do some case study with you and ask f.ex. which metrics you'd look at to assess the company

No one is going to expect that you know the intricacies of DD investing. The HL distressed debt primer is surely useful and maybe take a look at the S&P guide on leveraged finance.

Also get this book. Very basic and an easy read but if you know the stuff in there you are good to go
A Pragmatist's Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt

Good luck

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Mar 27, 2018 - 11:46am

No first had experience but Id assume all the advice on preparing for Rx interviews would apply here. Only thing I could think of is they may ask you to pitch them an investment.

Also - reach out to ppl at your school that had these interviews last year.

  • Intern in IB - Gen
Dec 29, 2020 - 5:28pm

Hey I am in a similar situation, could you share how the interview went and how I should prepare?

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