5 questions reported in Bain Capital Credit 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
A foundational question on why junior capital can lose money even when enterprise value looks healthy.
A company has $300m of senior debt, $100m of mezzanine debt and $200m of sponsor equity. Enterprise value falls to $360m. What happens?
Junior lenders ask this because their recovery can depend on sponsor behaviour before formal default.
You are lending behind senior debt in a sponsor-owned company. How do you assess whether the sponsor will support the credit if performance weakens?
Asked when a deal model assumes takeout debt without proving market access.
A mezzanine investment underwrites repayment through a refinancing in year five. What do you worry about?
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?
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 Bain Capital Credit.