Key Takeaways
- • Recruiter Richard Hoar of Goodman Masson says competition for private credit roles in London is intense, with roughly 20-25 candidates reaching first interviews, 12 reaching second rounds, six reaching the case study, and two receiving offers.
- • Case studies typically require candidates to prepare a presentation on company accounts within 3-4 hours, identifying errors in covenants and documentation that could make a deal too borrower-friendly.
- • Candidates must also produce a memorandum on the deal and defend it under questioning, often in a good cop-bad cop format designed to test composure under pressure.
- • Hoar argues private credit jobs retain appeal despite redemption pressures and fraud-related losses at firms including Jefferies and Barclays, citing the buyside principal role as a draw.
- • Preparation should focus on covenants, loan documentation, balance sheet analysis, and presentation and defense skills.
Summary
Recruiter Richard Hoar, a director at Goodman Masson who specialises in private credit placements in London, describes a hiring process that narrows sharply at each stage. According to Hoar, hundreds of applicants are filtered out after submitting CVs, with 20-25 reaching the first interview, 12 the second round, six the case study, and two receiving offers.
Hoar says private credit roles remain attractive despite negative press around redemptions from private credit funds and fraud-induced losses at Jefferies and Barclays. He characterises the work as buyside, noting that candidates act as principals, which he describes as more glamorous. Private credit funds lend to companies that cannot or do not wish to borrow through other channels, whereas private equity funds take equity stakes in unlisted companies. Private equity firms tend to hire former M&A juniors, while private credit firms favour former leveraged finance bankers.
The case study is the key hurdle. Hoar says candidates typically receive 3-4 hours to prepare a presentation based on company accounts, and that the materials often contain deliberate errors. Evaluators look for mistakes in covenants and documentation that could make a deal overly favourable to the borrower, as well as reasons the fund could incur a loss. Candidates are expected to write a memorandum on the deal and defend it in questioning.
To prepare, Hoar advises candidates to become familiar with covenants and loan documentation and to be able to read a balance sheet. He also stresses practice in presenting and defending a position. Interviewers, he says, look for attention to detail, storytelling ability, and composure, and may use a good cop-bad cop approach to test how candidates perform under pressure.
Hoar says private credit roles remain attractive despite negative press around redemptions from private credit funds and fraud-induced losses at Jefferies and Barclays. He characterises the work as buyside, noting that candidates act as principals, which he describes as more glamorous. Private credit funds lend to companies that cannot or do not wish to borrow through other channels, whereas private equity funds take equity stakes in unlisted companies. Private equity firms tend to hire former M&A juniors, while private credit firms favour former leveraged finance bankers.
The case study is the key hurdle. Hoar says candidates typically receive 3-4 hours to prepare a presentation based on company accounts, and that the materials often contain deliberate errors. Evaluators look for mistakes in covenants and documentation that could make a deal overly favourable to the borrower, as well as reasons the fund could incur a loss. Candidates are expected to write a memorandum on the deal and defend it in questioning.
To prepare, Hoar advises candidates to become familiar with covenants and loan documentation and to be able to read a balance sheet. He also stresses practice in presenting and defending a position. Interviewers, he says, look for attention to detail, storytelling ability, and composure, and may use a good cop-bad cop approach to test how candidates perform under pressure.
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