Have any monkeys out there gone through a debt fund interview? I assume there won’t be any waterfalls or anything of the sort. If anyone could give any tips or advice that would be awesome. Also any questions that I may encounter.
background on myself; worked in equity for a year and debt for 6 months at the same firm. This is for an associate 1 role. Thank you WSO community
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In a similar position … following
Deal experience, how you think about an investment opportunity, and possibly a case study.
Anymore details? For example; mental math “here’s cash flow, noi, ltv what’s the cash on cash?” Or even questions about the capital stack. Just a little more detail from you or anyone could be super helpful.
In similar position. Good luck and post how it went!
Since most debt funds use leverage, I would know how that math works.
Example. You have a 100mm loan at L+500. Your leverage source is going to give you 75% leverage at L+250, matched floors. What is the debt fund's leveraged spread? Answer is L +1250. The math on that is: 3 turns of leverage at +250 each turn (spread between loan and leverage rates)=750 + 500 on the initial equity = 1250.
Otherwise I think the big things to talk about are deal experience, opportunities that you see/like, etc.
This is extremely helpful thanks fam
What do you mean by "turns” and how do you figure 3?
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