Market Views
The Use of PIK in Private Credit
Published on: October 30, 2024
Payment-in-Kind (PIK) interest is a feature sometimes used in private credit that allows a business to add interest to their loan instead of making a cash payment. We view the use of PIK as a useful feature in certain but not all cases, as Vikas Keswani, Head of North American Specialty Direct Lending, discusses with Colbert Cannon in this video.