PCPPrivate Credit Prep
Attachment · Private-Credit-Interview-Guide-V5.pdf

Eighty private credit interview questions, answered the way a lender answers them.

Four PDFs, 129 pages: the questions with model answers and the follow-ups that come next, three case studies with the lender's answer key, and ten one-page cheat sheets for the week of the interview.

Buy the Interview Guide · $197Read 17 pages free first

Refund if a file is defective or not as described. Instant download.

questions
80
case studies
3
cheat sheets
10
pages
129
Private Credit Interview Guide, version 5 cover

PCPPrivate Credit PrepAuthor

Written by a private credit analyst on a direct lending deal team. About the author.

Subscribers include students at

Private Credit PrepPage 1 of 5
Format of every question

Every question is answered the same way

Why the interviewer asks it, the answer to give and the mistake that costs candidates the round. The must-know questions add the follow-ups and a line to remember.

From the guide

Question 62 of 80 · 07 · Underwriting & Downside · P0 must know cold

Would you lend to this business?

Candidate's draft, illustrative

Deleted: It's a strong business with good growth and solid margins, so broadly yes, but I'd want to do more work on the numbers before taking a firm view.

The lender's answer, as printed in the guide

Yes, but only at moderate leverage. The reasons would be resilient demand, decent cash conversion, and a structure that still leaves room in downside. The first thing I would test harder is the main pressure point, for example customer concentration, margin volatility, or working-capital risk. A strong credit answer takes the view early, then explains the conditions under which that view still holds.

Memory hook: Decision first, reasons second, condition third.

Private Credit PrepPage 2 of 5
Contents

Built for interviews at

Nine sections, in the order the interview runs

  1. 01Story, Fit & Motivation10 q. · p. 4Tell me about yourself · Why private credit?Opens the free sample.
  2. 02Accounting & 3 Statements12 q. · p. 14Walk me through a P&L · Walk me through a cash flow statementOpens the free sample.
  3. 03Cash Flow, Working Capital, FCF & Ratios10 q. · p. 25Why is an increase in working capital a use of cash? · Give me an example of negative working capitalOpens the free sample.
  4. 04LBO Logic & Valuation10 q. · p. 34Walk me through an LBO · What makes a good LBO candidate?Opens the free sample.
  5. 05Debt Instruments & Pricing10 q. · p. 45Bullet vs PIK: a simple example · What is a unitranche?Opens the free sample.
  6. 06Documentation & Lender Protection8 q. · p. 56How do covenants protect a lender? · Maintenance vs incurrence covenantsOpens the free sample.
  7. 07Underwriting & Downside8 q. · p. 63What do you look at when analyzing a debt file? · Would you lend to this business?Opens the free sample.
  8. 08Case Studies & Deliverables8 q. · p. 70What goes into a one-pager? · What goes into a lender-facing debt IM?Opens the free sample.
  9. 09Market Pulse & Team Overlay4 q. · p. 77What do you know about our team, positioning and recent deals?Opens the free sample.

Nine sections, in interview order. Each line opens the free sample80 questions · 86 pages

If the interview is this week

The guide's own instructions, page 2.

  1. Tonight

    Sections 1 to 5

    Fit, statements, cash flow, LBO logic, debt instruments. The core, if you only have one day.

  2. Tomorrow

    Sections 6 and 7

    Documentation and downside: where credit judgment gets tested.

  3. Day before

    Section 8

    Case studies and deliverables, live, against the answer key.

  4. Morning of

    Section 9

    Market pulse and the team, then the cheat sheets.

Private Credit PrepPage 3 of 5
Case studies · Cheat sheets

Three cases, built like a lender's packet

Transaction materials, operating data, financial history and debt terms, given as inputs. Decide what matters, what needs diligence and whether you would lend, then check the answer key.

  1. 01Project NorthlaneSponsor-backed compliance software and services platformRecurring revenue, but leverage close to 5x
  2. 02Project ValecrestIndustrial components manufacturerCustomer concentration and working-capital risk
  3. 03Project ElmridgeStrong business, stretched structureA good company with weak lender protections

Ten pages to scan before walking in

One page per topic: ladders, waterfalls, formulas and tables, for the last hour before the interview.

  1. 013 Statements & Flow
  2. 02Working Capital & Cash Conversion
  3. 03FCF, FCFF, FCFE & Coverage
  4. 04LBO Logic from a Lender Angle
  5. 05Debt Stack, Unitranche, Mezz, PIK
  6. 06Covenants & Lender Protection
  7. 07Underwriting Framework & Downside
  8. 08Credit Risks & Red Flags
  9. 09Credit Memo, One-Pager & Debt IM
  10. 10Euribor, Market & Prep Cards

Pages, as printed

Contents: 80 questions in interview order.
Contents: 80 questions in interview order.
Question 1: why it is asked, the answer, the mistake, the follow-ups.
Question 1: why it is asked, the answer, the mistake, the follow-ups.
Cheat sheet 4: LBO logic from a lender's angle.
Cheat sheet 4: LBO logic from a lender's angle.
Case 1, Project Northlane: the candidate's packet.
Case 1, Project Northlane: the candidate's packet.

Practise the model too

The Northlane case, modeled the way a direct lender builds it: a blank test, the solved model and a 24-page playbook. $127 on its own, or $277 with this guide.

See the Modeling Test
The solved Modeling Test: debt schedule
Private Credit PrepPage 4 of 5
Terms

What is refunded, and what is not

Report it within 14 days with your order number and what is wrong. The file is replaced within 5 business days, or the order is refunded. The files arrive instantly, so a change of mind after download is not refunded. The 17-page sample is taken from the guide itself, so you can judge it before paying.

Summary of termsPrivate Credit Prep
Product
Private Credit Interview Guide
Price
$197 one payment, no subscription
Contents
Interview guide (86 pp.), case studies (15 pp.), answer key (16 pp.), cheat sheets (12 pp.), credit memo template
Format
Four printable PDFs, yours to keep
Delivery
Instant download after checkout, through Gumroad
Refunds
Refund if a file is defective or not as described. Report it within 14 days with your order number and what is wrong. The file is replaced within 5 business days, or the order is refunded.
Support
support@privatecreditprep.com
Buy the Interview Guide · $197Expense it

Modeling test coming up? Interview Guide + Modeling Test · $277

Questions before buying

  1. YOUWho is it not for?

    PCP
    Anyone looking for a modelling course or a finance primer. It assumes you can read a P&L and know what leverage is, and spends its pages on how a lender uses those numbers. For modelling practice, see the Modeling Test.

  2. YOUHow do I get access?

    PCP
    The four PDFs download immediately after checkout, through Gumroad. Nothing to install, no account.

  3. YOUIs this a subscription?

    PCP
    No. One payment of $197, and the files are yours to keep.

  4. YOUCan I get a refund?

    PCP
    If a file is missing, will not open or differs from what this page describes, yes. Report it within 14 days with your order number and what is wrong. The file is replaced within 5 business days, or the order is refunded. The files arrive instantly, so a change of mind after download is not refunded. Write to support@privatecreditprep.com. Refund policy.

  5. YOUCan my employer pay for it?

    PCP
    Many employers reimburse interview preparation. The expense page has a note to send your manager.

  6. YOUWho wrote it?

    PCP
    A private credit analyst on a direct lending deal team, previously in credit analysis at a €3.5bn European private debt manager. Anonymous, so every figure is sourced instead.
Private Credit PrepPage 5 of 5