9 questions reported in Golub 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
Leverage capacity, documentation, downside cases and portfolio construction. 5 questions
Tests whether you think about the fund, not just the individual credit.
You're building a $2bn direct lending fund. How many positions, how do you diversify, and what returns should LPs expect?
Direct lending interviews start with why private credit won share from banks.
Why would a sponsor choose a unitranche from a private credit fund over a broadly syndicated loan from a bank, when the unitranche is more expensive?
The analysis a credit committee actually decides on.
How do you construct a downside case for a credit investment? What does it have to survive?
Private credit interviews go deep on documentation, because that is where the risk lives.
Beyond the leverage covenant, which credit agreement terms do you negotiate hardest, and why?
The core analytical exercise of a private credit investment team.
You're underwriting a $300m unitranche to a sponsor-backed software business at 6.0x leverage. What is your analysis, and what protections do you negotiate?
LBO modelling, leverage capacity, value creation plans and exit paths. 3 questions
Tests the mechanic that actually drives LBO returns. And the one candidates get wrong.
Build a three-year term loan schedule with a cash sweep. Each year: open with the prior year's closing balance, accrue interest on the opening balance, take mandatory amortisation, then sweep 100% of…
Leveraged finance and private credit interviews go deep here.
Explain the difference between maintenance and incurrence covenants. What does "covenant-lite" mean, and why should a lender care?
Essential for leveraged finance, private credit and restructuring interviews.
Walk me down the capital structure of a typical LBO from most senior to most junior. For each layer, explain pricing, security, and who buys it.
Spread decomposition, liquidity, index arbitrage and dealer inventory. 1 question
CLOs buy roughly two thirds of the leveraged loan market. Desks need to understand their behaviour.
Explain a CLO. Where does the equity return come from, and what happens when the portfolio deteriorates?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
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