Fortune | Private Credit Deals See a Rise in ‘Bad PIKs’ Showing ‘Cracks’ in the Market for Corporate Debt
Originally posted by Fortune on November 21, 2025.
The broader private credit market is healthy, but there is an increased number of companies taking on new debt featuring “payments-in-kind,” or PIK. Lincoln International’s valuations experts have tracked PIK trends through 2025, including the observed rise in “bad PIK.” Still, with broad growth in revenue and adjusted EBITDA, the trend does not present an immediate crisis. Brian Garfield, Managing Director and Head of U.S. Portfolio Valuations, shared more insights with Fortune.
“We’re not really seeing that it’s breaching the foundation,” said Brian.
Summary
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Lincoln International’s valuation expert speaks to Fortune about how risky terms are on the rise for lenders in the $3 trillion private credit market.
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I enjoy sharing insights about market and valuation trends with my clients, while also leading a differentiated and high-touch process.
Brian Garfield
Managing Director & Head of U.S. Portfolio Valuations
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