The new feature provides investors with a new perspective on the usage of PIK loans.
New York, October 29, 2026 / PRNewswire / -- Kroll, an independent provider of global financial and risk consulting solutions, and StepStone Group (Nasdaq ticker: STEP), a leading global private market investment firm, today announced the introduction of three new physical interest payment ( payment-in-kind, PIK ) indicators within the Kroll StepStone private credit benchmark. These indicators enable lenders, investors, and analysts to gain a clearer understanding of the use of non-cash interest in private credit. The indicators cover over 28,000 direct lending instruments, 18,000 transactions, and 13,000 borrowers, with historical data dating back to 2012.
These new indicators track loans in the US and European markets that contain active PIK components, and they are categorized by different industries and debtor size ranges, using three different measurement criteria:
- PIK Proportion of interest income
- PIK loan ratio calculated by the number of transactions
- PIK loan ratio calculated based on outstanding principal
Relevant data provides a reliable perspective on the dynamic role of non-cash interest in the private credit market, including the differences in PIK activities across various EBITDA ranges, regions, and industries. For example, the benchmark shows that, on a global scale, the use of PIK is currently slowing down rather than accelerating. As of October 10, 2026, PIK accounted for 2.86% of interest income in loans originated globally over the previous 12 months; in contrast, by the end of the second quarter of 2026, this proportion was 6.67% in the global sample of outstanding loans.
Kroll President of Financial Consulting Business Michael H. Dolan states: "Despite the long-term high level of borrowing costs and uncertainties in economic prospects, private credit and private capital markets still exhibit a relatively robust fundamentals. PIK is an important component in understanding the actual situation beneath the apparent returns of private credit; when assessing liquidity, leverage, credit quality, and ultimate value, the difference between interest paid in cash and interest recorded as debt is very important."
He also stated: " Kroll is at the intersection of value, risk, and trading, which gives us a unique perspective on these dynamics. As the private market continues to grow and become more complex, independent data, analysis, and professional capabilities become increasingly important for distinguishing individual pressures from broader market trends, and they can also provide investors with greater clarity and peace of mind."
StepStone Group, a partner and head of private debt, stated: "The growth and evolution of private credit have created a more diversified market, making it increasingly valuable to understand how financing structures change accordingly. Greater transparency in PIK activities – covering different markets, industries, and borrower sizes – provides another dimension for assessing market dynamics, comparing investment opportunities, and understanding how portfolios evolve over time."
Kroll StepStone Private Lending Benchmark
The Kroll StepStone Private Credit Benchmark was launched in September 2025, providing market participants with data and analysis based on over 28,000 direct loan instruments, more than 18,000 transactions, and 13,000 borrowers. This benchmark allows users to analyze private credit from multiple dimensions, including market segments, industries, and lien priorities.
New indicators are now available in the Kroll StepStone private lending benchmark, with historical data dating back to 2012.
About Kroll
Kroll indicates that, as a leading independent provider of financial and risk consulting solutions, the company utilizes unique insights, data, and technology to assist clients in addressing complex valuation needs. Kroll With over 6,500 professionals worldwide, the company continues its nearly 100 years of established expertise in the fields of risk, governance, trading, and valuation. The company claims that its advanced solutions and intelligence capabilities provide clients with the foresight needed to establish a sustainable competitive advantage.
About StepStone Group
StepStone Group Inc (Nasdaq ticker: STEP) is a global private equity market investment firm that focuses on providing customers with customized investment solutions, as well as consulting and data services. As of June 30, 2026, StepStone managed a total capital of approximately $913 billion, of which the managed assets amounted to $245 billion. Its clients include some of the largest public and private defined benefit and defined contribution pension plans worldwide, sovereign wealth funds, and insurance companies, as well as renowned donor funds, foundations, family offices, and private wealth clients, including high-net-worth individuals and the general affluent population. StepStone collaborates with its clients to build private equity market portfolios in asset classes such as private equity, infrastructure, private debt, and real estate, designed to meet their specific objectives.
