Hard Private Credit Practice Questions
69 free hard-difficulty Private Credit 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 Term SOFR is currently 0.75% and the loan was issued with a 2.0% Original Issue Discount (OID) over a 5-yea
- If the net debt is $272 million, how much 'headroom' does the company have on its leverage covenant expressed
- What is the minimum equity cure amount the sponsor must inject to restore compliance with the leverage covenan
- If the unrated equity tranche is $50M, and the pool suffers a 2% annual default rate with 65% recovery, what i
- If the annual payment is 5.01 million, what is the approximate remaining principal balance at the end of Year
- Which of the following is the most likely outcome under the Cov-Lite structure?
- If the company wishes to pay a $50M dividend through new debt (dividend recap), what would be the pro-forma le
- If the loan is held for exactly three years with SOFR constant at 5.00% and then repaid at par, what is the ap
- If SOFR falls to 0.25%, what is the fund's gross interest margin on equity?
- At what SOFR level would the borrower be indifferent between the two offers?
- What is the approximate 'Yield to Call' (YTC)?
- In a distressed scenario where the recovery is only 40% of the total loan balance, which lender usually suffer
- What is the primary danger of a 'Covenant-Lite' loan for a private debt lender?
- A credit manager is evaluating a senior loan marked at $0.96. The loan pays SOFR + 600 bps, and SOFR is 4%. If
- Which subtle drawback makes the average-of-quarter-ends approach potentially WORSE for the lender than tighten
- Which single drafting gap most enables the sponsor to manufacture a perpetual cure with minimal cash, and why?
- If the BDC maintains a 10% cash buffer and maximizes its new regulatory leverage capacity, what is the maximum
- Assuming the hurdle is non-compounding for simplicity in this example, how much carry does the GP receive?
- Under a whole-fund waterfall, what is the total dollar amount of carry received by the GP?
- An institutional investor uses the Public Market Equivalent (PME) method to benchmark a fund. The investor con
- If the gross asset yield is 10.75% and the fund expects annual credit losses of 0.75% on total assets, what is
- If the company is projected to exit at an equity value of $67.5 million, what is the required ownership percen
- If the blended preferred return (hurdle) amount was 46.9m, how much is the GP's catch-up?
- If the company is sold for 600M of equity value, what is the sponsor's realized MOIC?
- A fund with $100M in committed capital follows a European waterfall with an 8% preferred return, 100% GP catch
- If the fund has $100,000,000 in capital and earns $10,000,000 in profit, how much is distributed to the GP via
- A 5-year LBO model assumes an entry EBITDA of $50 million and a 7.0x entry multiple. The acquisition is financ
- A CLO has a $500,000,000 portfolio of leveraged loans. If the Overcollateralization (OC) test for the BBB tran
- If the fund charges a 1.5% management fee on gross assets and no incentive fee for this period, what is the ne
- A private credit fund manager reports a gross portfolio IRR of 12%. The fund has cumulative management fees of
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