Kroll and StepStone Group have launched three new payment-in-kind (PIK) indicators to provide greater transparency into the use of non-cash interest in private credit markets.

The indicators form part of the firms’ private credit benchmarks, covering more than 28,000 direct lending instruments, 18,000 deals and 13,000 borrowers, with historical data dating back to 2012.

They measure PIK as a proportion of interest income, the percentage of loans with an active PIK component by deal count, and their share of outstanding principal. The indicators will also allow investors to compare PIK usage across geographies, sectors and borrower sizes.

The launch comes as the firms’ data suggests PIK usage is moderating, with non-cash interest accounting for 2.86 per cent of interest income on loans originated globally over the previous 12 months, as of 10 October 2026.

This compares with 6.67 per cent across outstanding loans at the end of the second quarter, although the figures cover different loan cohorts and reporting periods.

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“PIK is an important part of understanding what is happening beneath headline returns in private credit; the distinction between interest paid in cash and interest added to debt matters when assessing liquidity, leverage, credit quality and ultimately value,” said Michael Dolan, president of financial advisory at Kroll.

“Greater visibility into PIK activity across markets, sectors and borrower sizes provides another dimension for assessing market dynamics, comparing opportunities and understanding how portfolios are evolving over time,” added Marcel Schindler, partner and head of private debt at StepStone Group.