The question that quietly ends most private credit interviews

Private Credit Brief · Issue #1

If you signed up for the Free Credit Investment Memo Framework, it's yours, a blank template and a filled example, structured the way direct lenders actually evaluate a credit.

Now, the one thing worth your two minutes.

The question that quietly ends most private credit interviews

"What's your biggest concern on this credit?"

Most candidates answer like this:

"Leverage is a bit high, there's some execution risk, and the sector is cyclical."

The interviewer nods, writes something down, moves on. You just described the credit.

The strong answer is specific and deal-level:

"The business looks fine. My only real concern is that two contracts are most of the revenue and both renew next year. If one slips, the covenant math gets uncomfortable fast."

Same deal. Same numbers. The first one describes the credit. The second one reads it, and that gap is what separates the candidates who get the offer from the ones who don't.

What changes the answer is the question running in your head on every deal. Ask "does the cash actually show up, and what breaks if the plan slips?" and you start reading the credit. Ask only "is this a good business?" and you describe it.

The one thing to remember

A generic risk list ("leverage, execution, cyclicality") shows you can label risks. A single, specific, deal-level concern shows you can underwrite, which is the entire job.

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