Market Views

The Use of PIK in Private Credit

Vikas Keswani headshot
Vikas Keswani
Managing Director
Colbert Cannon
Managing Director
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.

The Use of PIK in Private Credit - HPS Partners