Lincoln Private Market Index Rises 1.9% in Q2 as EBITDA Growth Offsets Multiple Contraction
Updated
Updated · PR Newswire · Aug 13
Lincoln Private Market Index Rises 1.9% in Q2 as EBITDA Growth Offsets Multiple Contraction
3 articles · Updated · PR Newswire · Aug 13
Summary
The LPMI climbed 1.9% in Q2 2026, reversing most of its 2.2% Q1 drop as private-company earnings growth, rather than valuation expansion, lifted enterprise values.
EBITDA growth accelerated to 5.6% from 4.7% and revenue growth to 6.9% from 6.5%; 64.0% of companies posted EBITDA gains, while buyout entry multiples stayed disciplined at 12.0x in H1 2026 versus 12.8x a year earlier.
Software held broadly steady, but leverage drove dispersion: loans below 35% LTV were marked at 99.0% of par, while software loans above 50% LTV fell 1.6% to 87.1% of par.
Private credit metrics remained stable overall, with the covenant default rate easing to 2.7% from 3.1%, even as lenders foreclosed on $22.3 billion of principal in H1 2026—nearly matching all of 2025—and secondary loan trading picked up.
Public markets rebounded far more sharply, with S&P 500 enterprise values up 14.8% on AI-driven repricing, underscoring Lincoln's view that private markets are being supported by current operating performance and showing less volatility.