Lincoln International
Lincoln International, Inc. (NYSE: LCLN) is a trusted investment banking advisor to business owners and senior executives of leading private equity firms and their portfolio companies and to public and privately held companies. Our services include mergers and acquisitions advisory, private funds and capital markets advisory, and valuations and fairness opinions. The global enterprise is comprised of a tightly integrated team of more than 1,400 professionals in more than 30 offices in 14 countries, offering an unobstructed perspective on the global private capital markets, backed by superb execution and a deep commitment to client success. With extensive industry knowledge and relationships, timely market intelligence and strategic insights, we forge deep, productive client relationships that endure for decades.www.lincolninternational.com
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Search complete. 3 mentions across 3 episodes found for "Lincoln International".
Oct 19, 2026
Rick MillerGUEST
And so taking that view, I think we come at it from a little bit of a different lens.
Rick MillerGUEST
Our friends at Lincoln International have really done a great job of using the use of PIC as maybe a better proxy for defaults and market health within the private credit segment.
Rick MillerGUEST
And so I would agree with them that I think that's probably a better indication, a more accurate indication of the underlying health is that when you see the use of PIC increasing That's probably as good a sign as any is that all things are not going well in the marketplace.
Will LloydHOST
For our listeners who are not familiar with the term PIC, it stands for payment in kind.
speaker_1NARRATOR
The adjustment extends beyond pricing.
speaker_1NARRATOR
Lincoln International reports that for new loans issued in August twenty twenty-six to borrowers with forty million dollars to one hundred million dollars in EBITDA, earnings before interest, taxes, depreciation, and amortization, leverage levels declined versus the fourth quarter of twenty twenty-five, while required equity cushions increased to fifty percent from forty-five percent.
speaker_1NARRATOR
Similarly, KBRALD reports that interest coverage ratios on newly originated direct lending loans reached two point five x in the second quarter of twenty twenty-six, the highest level since twenty twenty-two, alongside improving fixed charge coverage metrics.
speaker_1NARRATOR
In other words, the marginal dollar of capital is increasingly being deployed into loans with wider spreads, lower leverage, greater borrower equity support, and stronger debt servicing capacity.
Michael CembalestHOST
Some of the sources that you'll see out there are saying that stress is only 1% to 3% of the book when they're looking at things like BDCs.
Michael CembalestHOST
And examples include Lincoln International, S&P, Hooligan-Loki, Proskauer-Rose, KBRA.
Michael CembalestHOST
These are the usual suspects, and their stress levels are like just 1% to 3%.
Michael CembalestHOST
So what's the problem? The issue is that the definitions of stress from all these providers are different.