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Private Credit Prep (private credit)

Private credit and debt practice questions — direct lending structures, unitranche, covenants, leverage and coverage metrics, intercreditor dynamics, and credit analysis judgment for the fastest-growing seat in alternatives.

Start free Private Credit prep: 2,245 questions with full explanations →

Private Credit practice by topic

How do I prepare for a private credit interview?

Think like a lender: downside first. Drill leverage and coverage math, covenant packages, and structure (unitranche vs senior-stretch, PIK, delayed draw). KomFi gives you 2,245 practice questions with lender-grade explanations.

What does a private credit analyst do?

Underwrite loans to sponsor-backed and middle-market companies: model the credit, negotiate terms and covenants, and monitor the book. Interviews test credit judgment plus structural fluency — both drilled here.

How is private credit different from private equity?

PE owns the equity and the upside; private credit lends against the same businesses for contractual return with downside protection. The analytical toolkit overlaps, but credit pays you to find what can go wrong.

Free Private Credit practice questions

  1. If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower must pay?
  2. A borrower's credit agreement includes a 'Negative Pledge'… Is this allowed?
  3. A loan agreement specifies that the borrower's Total… How should this covenant be classified?
  4. Is the company in default?
  5. If Term SOFR is currently 0.75% and the loan was issued with a 2.0% Original Issue Discount (OID) over a…
  6. What is the immediate consequence for the CLO Equity holders?
  7. A loan is priced at SOFR + 600 bps with a 1.0% floor. If the current SOFR rate is 0.5%, what is the total…
  8. What is the company's 'covenant headroom' in EBITDA terms?
  9. What is the likely impact on the loan's fair value?
  10. If SOFR is currently 0.50%, what is the all-in interest rate paid by the borrower?
  11. If the company subsequently raises a 'down round' at $6.00 per share, what is the fund's new conversion price?
  12. If the equity tranche is $50M (10% of capital), what is the 'Cash-on-Cash' yield before defaults?
  13. If current SOFR is 0.50%, what is the total coupon rate?
  14. If the company currently has $100M in debt, what is the minimum equity injection required to restore…
  15. If the net debt is $272 million, how much 'headroom' does the company have on its leverage covenant expressed…
  16. If the expected life of the loan is 4 years and SOFR is currently 5.0%, what is the approximate all-in yield…
  17. If the current 3-month Term SOFR is 0.65%, what is the all-in coupon rate paid by the borrower?
  18. A 'Negative Pledge' clause in a credit agreement primarily restricts the borrower from:
  19. If the current market SOFR rate is 0.25%, what is the all-in interest rate?
  20. If the current SOFR rate is 0.50%, what is the all-in interest rate paid by the borrower?
  21. How much cash does the borrower actually receive at closing from this tranche?
  22. What is the minimum equity cure amount the sponsor must inject to restore compliance with the leverage…
  23. If the company issues a new incremental 'accordion' facility at a spread of 600 bps, and the original…
  24. What is the Covenant EBITDA?
  25. If SOFR resets to 0.50% and the loan is priced at 98.00 (OID), what is the current effective coupon rate?

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