Private credit firms are reportedly moving away from an industry perk called payment in kind. Around 13.5% of new private credit loans originated in the second quarter had a PIK provision, the report said, citing investment-banking adviser Lincoln International. The report noted that lending standards in the private credit space are becoming more strict amid worsening loan performance and heightened scrutiny from investors. This is happening amid increased oversight into the private credit market. “Unlike public credit markets, in which conditions can be tracked through public market data, visibility into new private credit lending activity is more limited.”