The number of private credit deals that are changed after the initial deal is signed to include more risky terms for the lender is on the rise, according to Lincoln International, an investment bank advisory service that monitors that market. That’s a sign that there are potential “cracks” in the $3 trillion private credit market, according to Brian Garfield, Lincoln’s managing director and head of U.S. portfolio valuations.
Garfield told Fortune that the broader private credit market is healthy and companies borrowing within it are largely growing their revenue and profits. But the number of companies taking on new debt featuring “payments-in-kind,” or PIKs, had increased.
