Private credit internships: test repayment, not just an EBITDA multiple

Interest coverage is only the first question

Original fictional annual case, in millions of dollars: EBITDA is $10 and cash interest is $4. The simple EBITDA-to-interest ratio is 2.5×. That sounds comfortable until you account for the other uses of cash.

Assume $3 of capital spending, $1 of cash taxes, a $2 increase in working capital and $2 of scheduled principal repayment. For this teaching case, assume no other adjustments between EBITDA and cash generation, and no available opening cash or new financing.

Follow the $10 million through the payment date

The same business has no cash left before principal and a $2 million funding shortfall after it. All figures below cover the same annual period.

• EBITDA of $10 less capital spending of $3 leaves $7.
• Subtract $4 of cash interest and $1 of cash taxes: $2 remains.
• Subtract the $2 working-capital investment: cash before principal is $0.
• Subtract the $2 principal installment: the funding gap is $2.

Decide which missing fact matters most

The next question is whether the working-capital use is temporary and will reverse before the payment is due. If customers pay after the due date, an adequate annual total could still conceal a short-term cash gap. Extend the case into months rather than treating year-end cash as available throughout the year.

Do not fill a model's shortfall with an assumed refinancing or an uncommitted credit line. Ask what cash, committed borrowing capacity or other support actually exists and under what conditions it can be used. This example deliberately assumes none; a real assessment would verify them.

For a one-page credit sample, state the payment, the source of repayment, the downside scenario and the most important missing document or fact. Explain whether you are concerned about timing or about the business's ability to generate enough cash over time. A high interest rate or an impressive collateral label does not answer either question.

In the role discussion, ask whether you would help underwrite new loans, monitor existing borrowers or perform another function. When reviewing a real agreement, use its actual definitions and qualified review rather than treating the teaching calculation as a contractual covenant test.

Before you apply

Eligibility

Ares lists a December 2027–August 2028 graduation window for its 2027 summer program and welcomes all majors. Check additional requirements on the credit position.

Timing

Ares describes a paid, ten-week program beginning in June 2027. U.S. roles appear at several points during the year, not under one universal deadline.

Location

Identify the strategy and office: corporate direct lending, real estate debt and asset-based finance involve different underlying assets.

Pay

Ares confirms paid status, not one universal rate. Use the chosen position or offer for the amount and relocation terms.

Sources: Ares early careers

Job titles to search

Private credit summer analyst

Support borrower analysis, underwriting or monitoring of existing investments.

Direct lending intern

Evaluate a business's cash flows against a proposed financing structure.

Asset-based finance intern

Analyze the assets and collections supporting repayment.

Where to look

Search routes, not confirmed vacancies.

Compare the work and try an example

Use a role comparison or worked exercise to choose your preparation before tailoring an application.

• Corporate treasury versus FP&A internships: cash, forecasts and decisions
• Financial due diligence internships: what to analyze and how to practice
• Private credit versus corporate banking internships