Valuations & Opinions
Nov 2025

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.

Read the original article.

Summary

Contributor

Brian Garfield

Managing Director & Global Head of Portfolio Valuations

New York

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