Deal Making Dynamics & Valuations with Lincoln International

LFI Levered Lines Podcast | Season 3, Episode 7

This week on Levered Lines, host Krista Giovacco speaks with Brian Garfield and Lucas Weiss from Lincoln International’s Portfolio Valuation and Opinions Practice to discuss private credit market dynamics heading into 2026. They discuss deal making momentum with transaction multiples exceeding 2021 peak levels and the outlook for continued M&A activity alongside robust refinancing volume. The conversation covers portfolio company fundamental performance with over half growing EBITDA, borrower-friendly market conditions driven by substantial private credit dry powder, spread compression trends, and junior debt capital stack normalization. Key themes include the impact of withdrawn leverage lending guidelines on bank and direct lender competition, AI’s potential influence on software underwriting dynamics, management team optimism with 8-10% growth projections, tactical positioning in subordinated debt markets, and challenges addressing underperforming companies and aged portfolio exits in sponsor funds.

Watch on YouTube:

Speakers:

Krista Giovacco, Senior Reporter, LevFin Insights:
Krista covers US private credit including direct lending, fundraising, business development companies and secondaries opportunities. She previously covered leveraged loans at Bloomberg and began her career at LCD News.

Brian Garfield, Managing Director & Head of U.S. Portfolio Valuations, Lincoln International:
Brian heads Lincoln’s US portfolio valuations practice, providing valuation and opinion services to alternative asset managers.

Lucas Weiss, Managing Director, Lincoln International:
Lucas performs valuations of illiquid investments for private equity funds, credit funds, and business development companies.

Timestamps:

00:00 – Introduction
02:21 – Deal Making Dynamics & M&A
08:19 – Portfolio Company Fundamental Performance
10:46 – Borrower-Friendly Market Conditions
13:56 – Junior Debt Capital Stack Trends
17:22 – Leverage Lending Guidelines Withdrawal
19:11 – 2026 Outlook & Conclusion