Private Credit Deals: Rising 'Bad PIKs' Signal Market Weakness

Private Credit Market Shows Signs of Stress: Lincoln International Reports Surge in Bad PIKsThe private credit market, valued at three trillion dollars, is experiencing a worrying trend. More deals are being altered post-signing, often to include riskier terms for lenders. This is highlighted by Lincoln International, an investment bank advisory service. The concern lies in the rising number of bad PIKs, or payments-in-kind, added after a deal is made. These allow companies to delay interest payments, adding them to the main loan amount due later. While PIKs arent always negative, the increase in bad PIKs from nearly 37% in late 2021 to over 57% in Q3 2025 indicates unexpected negative events for borrowers. Despite these cracks, the market isnt in crisis yet, as many companies are still growing their revenue and profits.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.