Hard Private Credit & Debt Practice Questions
89 free hard-difficulty Private Credit & Debt questions, drawn live from KomFi's calibrated bank. These are the items that separate top scorers — every one carries a full explanation and trap analysis once you sign in.
- If the net debt is $272 million, how much 'headroom' does the company have on its leverage covenant expressed
- If they raise an additional $90 million in debt to pay a dividend, what is the new Interest Coverage Ratio (IC
- If the borrower pays SOFR + 650 bps on the total facility, what is the direct lender's effective spread on the
- If the lender applies 1.0× leverage ($100 million debt, $100 million equity) and SOFR is 5.0%, what is the len
- If the healthcare sector experiences a reimbursement cut and healthcare loan PDs increase by 5%, while the res
- If the advance rates are 85% for eligible AR and 50% for eligible Inventory, what is the maximum drawdown avai
- If the current 3-month Term SOFR is 0.65%, what is the all-in coupon rate paid by the borrower?
- If the fund is fully levered, what is the doubling of the equity return assuming SOFR = 4.5%?
- What is the 'Residual Value' (Unrealized Value) currently held in the portfolio?
- Which of the following best describes the accounting treatment of this loan in the fund's financial statements
- If the interest rate is $8% and EBITDA remains flat, what is the impact on 'Interest Coverage' (EBITDA / Inter
- After accounting for a 0.8% difference in credit losses, what is the estimated 'Illiquidity Premium' being ear
- What is the risk-neutral probability of default (PD)?
- How much must the borrower apply to prepay the outstanding senior debt?
- If the total debt is $250M, what is the leverage ratio for covenant compliance purposes, and how does it compa
- What is the minimum equity injection required to restore covenant compliance?
- A direct lending fund marks a loan at 96 cents on the dollar… — According to ASC $820, how should this valuati
- Under a whole-fund waterfall, what is the total dollar amount of carry received by the GP?
- If the fund has $500M in commitments, $400M in total capital drawn, and has realized $120M (at cost) of its in
- An LP is conducting due diligence on a direct lending fund.… — What is the most significant risk highlighted b
- An institutional investor uses the Public Market Equivalent (PME) method to benchmark a fund. The investor con
- If the business is liquidated for $200M, what is the recovery rate for the Second Lien lender?
- Assuming the PIK interest compounds annually, what is the total cash inflow to the lender at exit (including p
- If the proposed capital structure assumes a blended interest rate of 7.0% across all debt tranches, what is th
- If the unrated equity tranche is $50M, and the pool suffers a 2% annual default rate with 65% recovery, what i
- If the loan has 3 years remaining with annual interest payments and a bullet repayment, what is the approximat
- What is the implied 'Last-Out' spread for Lender B, and why would Lender A accept a lower rate?
- If the company's enterprise value declines by 64%, what is the estimated recovery for the senior secured lende
- A fund with $100M in committed capital follows a European waterfall with an 8% preferred return, 100% GP catch
- What is the value creation specifically attributable to multiple expansion?
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