Medium Private Credit & Debt Practice Questions
213 free medium-difficulty Private Credit & Debt questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.
- If the BDC maintains a 10% cash buffer and maximizes its new regulatory leverage capacity, what is the maximum
- Which of the following is the most accurate interpretation of this metric for an institutional LP?
- If the total Enterprise Value is $300M, the Senior Secured Debt is $250M, and the Senior Unsecured Notes total
- A private capital manager identifies $20M in tax savings fro… — If these savings are realized as a $1M annual
- If the fund provides a $200M senior loan, how does the inclusion of add-backs affect the reported leverage rat
- What is the approximate net return to the LP equity (ignoring credit losses and incentive fees)?
- If the company subsequently raises a 'down round' at $6.00 per share, what is the fund's new conversion price?
- If the lender's cost of capital is 10%, what is the approximate 'Economic Loss' compared to a performing loan?
- If the equity tranche is $50M (10% of capital), what is the 'Cash-on-Cash' yield before defaults?
- An investor uses the 'Kaplan-Schoar PME' to evaluate a 2018… — If the PME is $1.15, what does this indicate ab
- What is the primary risk factor the lender evaluates?
- If the company fails and liquidates for $2M after two years, what was the primary risk realized by the lender?
- A PE sponsor is acquiring a company with $50M of LTM EBITDA. They secure a debt package with a 4.5× total leve
- If current SOFR is 0.50%, what is the total coupon rate?
- What is the primary impact on the fund's performance multiples?
- What is the likely 'Unsmoothed' volatility of the portfolio?
- What is the likely impact on the loan's fair value?
- What is the total dollar value of the warrants to the lender at exit?
- What is the maximum the company can draw?
- What is the lender's total cash flow at exit?
- What is the 'Equity Cushion' (or LTV attachment point) beneath the First Lien debt?
- If EBITDA grows 8% annually and all free cash flow is used to pay down debt, what is the estimated cumulative
- A private credit fund manages a senior secured loan to a mid… — According to the ASC 820 framework, how should
- If the BDC aims to maintain its RIC tax status and has $5 million in realized capital losses, what is the mini
- What is the fund's 'Distributed to Paid-In' (DPI) ratio?
- If the company generates $10 million in cash flow and pays a $2 million dividend to the seller during that six
- If the cumulative probability of default over a 5-year investment horizon is 8%, what is the difference betwee
- Assuming the hurdle is non-compounding for simplicity in this example, how much carry does the GP receive?
- What percentage of ownership must the investor acquire today to meet their target (assuming no further dilutio
- If the pool suffers a 2% annual default rate with a 65% recovery rate, what is the adjusted annual yield on th
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