MM Private Debt Firm: Timed Modeling Test (Project Sapphire)
The Project Sapphire: Modeling Test is a 3 hour (180 min.) timed modeling test utilizing the provided transaction assumptions and test template. The test reflects the format and level of difficulty that has been given by an actual private debt firm.
Firm Overview
Type: Middle Market Private Debt Firm
Latest Fund Size: ~$2B
Industry Focus: Industry-Agnostic
Project Sapphire Overview
The objective of the Project Sapphire modeling test is to build a 5 year projection model and determine whether the Company can reasonably handle the provided capital structure. Read the instructions in the excel workbook, follow the steps below (included in the workbook as well) and input relevant data into the highlighted cells in the model template provided. For assumptions that aren't specified, please use your judgement in finding a reasonable approach.
Required steps:
- Build a 3 statement model that can toggle between the provided Management Case assumptions and a more conservative Associate Case.
- Build the model out on the "Model" tab and link the appropriate case to the initial tab.
- Utilize the “Summary” section to answer the following question: Based on the returns in both cases, should Pro Rata Partners (a fictional private debt investor) pursue a (i) debt & equity investment, (ii) debt only investment, or (iii) neither, and why?
Project Sapphire Snapshot
Be advised: The below images only represent a small portion of the included modeling test. The snapshot is meant to provide a glimpse into the format and style of the test being offered.
Test Preview: