Why ‘Payment-In-Kind’ Debt Is So Appealing — and Risky

The article explores the concept of 'Payment-In-Kind' debt, which has become a popular strategy among private equity firms when acquiring companies. This approach allows firms to defer interest payments, but it also carries significant risks, especially when interest rates rise. Understanding this financial tactic is crucial as it highlights the balance between leveraging debt for growth and the potential pitfalls that can arise from such strategies.