7 questions reported in Apollo Global Management interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
Blended return construction, PIK, warrants and intercreditor terms. 5 questions
Private credit firms ask this because junior debt labels are often used sloppily.
Compare mezzanine debt with second lien debt. Which one is safer and why?
Asked once candidates can explain subordination but not the legal mechanics behind it.
You are buying mezzanine debt behind a senior secured loan. What intercreditor terms do you care about most?
A senior analyst case on protecting junior recovery when a sponsor requests consent for a transaction that pays itself rather than strengthens the company.
You own a $75m mezzanine note behind $225m of first-lien debt. EBITDA is $60m and enterprise value is $420m. The sponsor requests consent for a $50m incremental first-lien dividend recap. It says pro…
A harder credit question that forces candidates to quantify attachment and detachment risk.
A business has $250m first-lien debt, $75m mezzanine debt and $175m equity. In distress, enterprise value is $285m. What is the mezzanine loss given default?
A junior-capital underwriting question that distinguishes a contractual covenant cure from a durable reduction in default risk.
A sponsor-owned borrower will fail its springing fixed-charge coverage test. The credit agreement allows an equity cure, and the sponsor proposes to inject $12m two days before testing. The agreement…
Recovery analysis, capital structure relative value and covenant leakage. 1 question
A claim-selection case used by credit funds to test whether an analyst maps who actually owns assets and cash flow.
A parent holding company has a $300m bond. Its operating subsidiary owns all assets, generates $80m of EBITDA, and has $400m of secured debt. The holdco owns only the subsidiary's equity. Explain why…
Structuring for downside, collateral, priming risk and recovery. 1 question
A distressed-credit case that tests whether a lender can choose a remedy based on value preservation rather than frustration.
A borrower will breach its leverage covenant next quarter. It has adequate liquidity for six months, a viable core business, and a sponsor proposing a 12-month maturity extension in exchange for a…
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Apollo Global Management.