Private Credit Interview Process with Equity Background
Hi - I have an interview coming up in a couple weeks for a mid-level private credit role out of SF. My post-banking experience is all equities investing, primarily minority growth. I'm looking for guidance on what to focus on from a preparation standpoint. I searched threads and found a few helpful pointers, but many were more for junior roles and others had no substantive replies. A big area of focus for me is articulating clearly why a credit role is something that I'm interested and can perform well at coming from an equities background. At a mid-level, how much focus on technicals vs behavioral vs industry? Are there any "courses" that one would recommend?
Appreciate all the help!
Transitioning from an equities background to a private credit role is an exciting move, and it's great that you're seeking guidance to prepare effectively. Based on the most helpful WSO content, here are some tailored pointers to help you navigate your upcoming interview:
1. Understanding the Private Credit Space:
2. Technical vs. Behavioral vs. Industry Focus:
3. Articulating Interest in Credit:
4. Courses and Preparation Materials:
5. Practice and Networking:
Remember, your unique background in equities investing brings a valuable perspective to a private credit team, especially in terms of understanding market dynamics and assessing investment risks. Good luck with your interview!
Sources: Private Credit Interview Advice, leveraged finance interview - what to prep, Private Credit Resources and Prep, Private Equity Interview Questions - 13 Topics to Know
Im a junior in PC so take with a grain of salt, but to my understanding, a mid level PC role (VP or equivalent) is more focused on structuring/legal/etc. Analyst/assoc handles a lot of the in the weeds analysis while principal/partner handles a lot of relationship/outreach. With that said, you obviously have to dip into each area. So for technicals, I’d prep by becoming familiar with credit agreements and covenants. For example, maybe they ask how you would structure a certain debt/investment basket given a restaurant chain’s strategy of building out new restaurants or how to structure investment baskets for a convenience store operator that grows via add ons
Otherwise, be able to have a credit recommendation for your deals. A key focus that I’ve had in PC analyst/asso interviews is on risks and mitigants and then obviously the investment recommendation
Is this true for flow unitranche shops? Feel like it’s fill out a grid and go “that’s market sure I agree” or tweak basket sizes a bit
I work at a medium sized shop and want to ask in case I’m missing something from a development perspective lol
You’ll be bored out of your mind in this kind of a role if your are used to taking real risk. Be sure you really want it regardless of brand. That said, I can provide some pointers - but give me something to work with. deal size, strategy (direct lending vs other), main senior / sponsor, stand-alone firm vs interstates etc. every shop is different
Thanks - It's one of the larger direct lending shops (Ares, KKR, Blue Owl, etc.). Mostly senior secured, some more opportunistic credit (incl. pref. equity, royalty).
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