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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.