Lincoln Index Shows Private Markets Up 2.8% in Q3 2026
Private company valuations rose for the quarter, but elevated interest rates and credit stress are creating sharper divides across private markets.
Private company valuations climbed 2.8% in the third quarter of 2026, according to the Lincoln Private Market Index released Monday by Lincoln International, a Chicago-based global investment banking advisory firm. The gain reflects continued earnings growth among privately held businesses even as broader financial conditions remain challenging.
Despite the headline advance, the report highlighted mounting credit risks that are increasingly separating stronger performers from weaker ones within private markets. Higher interest rates have persisted as a pressure point, straining leveraged borrowers and exposing pockets of stress that analysts say are becoming harder to ignore.
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The findings underscore a growing divergence in private market outcomes — a trend that Lincoln International characterized as increasing differentiation. Companies with solid cash flow and manageable debt loads are faring markedly better than those carrying heavier leverage burdens, according to the index data.
The index serves as a broad benchmark for the health of private company valuations and credit conditions, drawing on Lincoln International's advisory work across a wide range of industries and deal structures. Its quarterly readings are closely watched by private equity sponsors, lenders, and institutional investors seeking a window into a segment of the economy that does not report publicly.
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