Yoo Credit Dawgs, How're You Making Money?

Yooo folks in credit, can u tell me where your returns are coming from by: 


OID
Commitment Fees
Closing Fees
Cash Interest
PIK
(any other)

What kinds of returns are u looking to underwrite across sectors (distressed, stressed, performing)? How do these vary by industry??




 

dude this was some next level cringe to read, probably cringier than what OP said and that was bad enough as it was. Dear Christ I have to get off this website. 

 
Most Helpful

All-in yield and underwriting fees - leveraged loan deals

-see my posts detailing all-in yield, fees & flex, etc. 

https://www.wallstreetoasis.com/forums/tla-vs-tlb-maturity-and-leverage#comment-2071053

https://www.wallstreetoasis.com/forums/oid-in-leveraged-loans

1) all-in yield calc (margin, OID, LIBOR Floor).

  • L+400, 99.0, 1.00%
  • = 400 + [100/4] + 100
  • = 525 bps = 5.25%
  • Note: Only trick is OID. OID based on 4yr avg life, so divide by 4

2) UW Fees - BB/Ba2 Transformative M&A deal

  • BB/Ba2 M&A deal
  • BB/Ba2 UW fee = 1.00% to 1.25% on TLB (seen 0.75% tho). Tranches UW Fee will differ
  • Market Flex = 125-150 bps (normal market conditions)

3) UW Fees - B/B2 RC/1L TLB / 2L TL deal

  • RC/1L TLB / 2L TL 
  • RC/1L TLB = 2.25%
  • 2L = 2.75% (+0.50% from 1L); even seen 3.00%
  • Privately Placed 2L TL = 0.25% - 0.50% fee (bank still gets this if it's privately placed - at least it's something)
  • Market Flex = 150-175 bps [+25 bps from 1L] (normal market conditions)

4) Best Efforts Fee - B/B2 TLB deal

  • 1.00%
 

Thanks dawg. Without going in lot details, mind sharing a bit more on the breakdown of those juicy returns u guys have been gorging on? 

 

Molestias expedita et voluptate ad. Non sed iusto perspiciatis perspiciatis quibusdam.

Et fugit dicta eum provident laborum ullam. Id deleniti velit fuga neque voluptas corrupti. Rerum amet et suscipit laborum velit in eligendi. Quae molestias laudantium eveniet molestiae dicta. Ut nostrum nihil id molestias. Est sunt expedita tempore dolorem.

Magni inventore tempore blanditiis ea minus. Inventore repudiandae provident voluptatem possimus velit qui. Atque odit eos corrupti provident.

Career Advancement Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Warburg Pincus 99.0%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

March 2024 Private Equity

  • Principal (9) $653
  • Director/MD (21) $586
  • Vice President (92) $362
  • 3rd+ Year Associate (89) $280
  • 2nd Year Associate (204) $268
  • 1st Year Associate (386) $229
  • 3rd+ Year Analyst (28) $157
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (313) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”