How do I crush it in Private Credit?

Hey fellow Monkeys,

so I start a Private Credit Analyst gig straight out of Undergrad in September and I am looking to prepare for the role so I can land running. I got the job because I have strong academics, interviewed well, and am a top athlete(one of the senior interviewers had seen me play). But my technical knowledge of finance is weak. I want to invest some time between now and my start date learning what I can.

My plan is to start with accountancy, I have already completed WSP basic accounting course and will try their advanced one over the winter holidays.

Then I want to do some reading around credit itself. A book that keeps coming up is "A Pragmatists Guide to Leveraged Finance", which I have heard is very basic, but at this point I need basic. Another book that I have seen on Amazon is "Private Debt: Opportunities in Corporate Direct Lending" but I don't know how good it is. I am not sure if credit analysis is something I should be adding to my tool kit, if it is again Amazon recommends "The Practice of Lending: A Guide to Credit Analysis and Credit Risk". Has anyone read these books and wishes to share their thoughts or make alternative recommendations?

I am also planning to do LBO modeling course online over the summer, focusing on debt schedules and downside scenarios.

What do you think of this approach, does anyone have any suggestions or recommendations or tips. I have read some really helpful posts from @Pan European Monkey and @loanboy043

If anyone has any other useful threads they can point me to that would also be appreciated.

Thanks in advance 

M.

Comments (5)

Most Helpful
  • Associate 2 in PE - Other
Dec 1, 2021 - 1:30pm

Out of curiosity, why would you be unsure if you should read about credit analysis ahead of a private credit role...?

The advice for new analysts coming out of undergrad is always the same no matter what industry you're in. Keep your head down and soak in everything, work hard to try and make others' lives easier, don't put any task beneath you, and make sure to seek out learning opportunities. No one expects you to run a full model or diligence a credit day 1, so don't stress too much over whether you know everything about modeling or credit technicals. All of those books are good, I recommend a pragmatists guide to levfin

Dec 4, 2021 - 4:36am

You're taking all the right steps. If you feel your accounting/finance knowledge is weak, then yes I'd definitely focus on that the most as it'll be a baseline expectation for you going into your role.

Also learning LBOs and stuff is good but make sure you really understand the credit aspect of it. Educating yourself on specific LBOs funded by private credit and making sense of why a private lender found that particular deal to be a good investment is also a great way to start thinking the way your team might operate. 

  • 3
Dec 6, 2021 - 12:18pm

Laudantium sunt id quis tempore sit. Quae nihil tempora et perspiciatis iure.

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