9 questions reported in Sixth Street 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
Structuring for downside, collateral, priming risk and recovery. 4 questions
A first-round question testing whether a candidate understands the mandate beyond generic private credit.
What does a special situations investor do, and how is the underwriting different from a normal direct loan?
Tests whether a candidate can translate a liquidity gap into protected new-money terms.
A company needs $40m to fund operations through a turnaround. What terms would you seek if you provide rescue financing?
The defining development in leveraged credit over the last decade.
Explain the main liability management exercises. How does a lender end up worse off despite holding senior secured debt?
Special situations interviews test structuring creativity against downside protection.
A company needs $150m urgently and cannot access conventional markets. How would you structure the financing, and how do you get comfortable?
Leverage capacity, documentation, downside cases and portfolio construction. 3 questions
A practical underwriting follow-up after management presents adjusted EBITDA.
Management reports $20m of adjusted EBITDA, including $3m of restructuring costs and $2m of projected synergies from an acquisition that has not closed. How would you decide what EBITDA to underwrite?
The situation every private credit portfolio faces, and where returns are actually determined.
A portfolio company breaches its leverage covenant. The sponsor asks for an amendment. How do you respond?
An offer-level judgement question about incentives during a stressed portfolio-company situation.
A sponsor-backed borrower needs $15m of liquidity. The sponsor says it has reserves but wants lenders to fund a super-senior delayed-draw tranche first. How would you evaluate the request?
Blended return construction, PIK, warrants and intercreditor terms. 1 question
Junior capital providers choose between these regularly, and the reasons are not obvious.
A sponsor needs $150m of junior capital. When would you provide it as mezzanine debt versus preferred equity?
LTV, DSCR, debt yield and structuring against a property's cash flow. 1 question
The gap-funding layer that appears in most levered real estate deals.
A sponsor needs 75% total leverage but the senior lender will only go to 60%. How do you fill the gap, and how is your position secured?
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 Sixth Street.