Lincoln Private Market Index Rises 2.8% in Q3 Driven by Earnings Growth
The Lincoln Private Market Index (LPMI) rose 2.8% in the third quarter of 2026, fueled primarily by steady earnings growth rather than expansion in valuation multiples. While private company revenue grew by 7% and EBITDA by 5%, enterprise value multiples for new buyouts remained relatively flat at an average of 12.1x EBITDA year-to-date. Despite overall resilience, the report highlights emerging credit risks within the private markets. Although the size-weighted covenant default rate improved to 2.5%, analysts noted that 'Bad PIK' (interest payments switched from cash to payment-in-kind due to liquidity pressures) remains present in 6% of total loans. This suggests underlying stress in certain borrower cash flows despite stable headline metrics.
Topics: earnings growth economic indicators enterprise value private markets