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Market Views

PIK Considerations in Private Credit Solutions

Grishma Parekh
Managing Director
Paul Saunders
Executive Director
Published on: September 04, 2025

The elevated interest rate environment has led to increased use of Payment-in-Kind (PIK) interest in private credit solutions. Grishma Parekh, Co-Head of North American Core Senior Lending, explains the different ways PIK can be incorporated and why it may soon be less prevalent in private credit investments.

PIK Considerations in Private Credit Solutions - HPS Partners