Continued Capital Advisory Momentum with Large Issuers in YTD 2026
Following a period of elevated redemptions and technology-driven disruption in early 2026, private credit markets have stabilized and are competitive, heading into the back half of the year with an expected increase in mergers and acquisitions (M&A) activity. However, execution complexity is increasing for larger borrowers as hold sizes have come down and interest rates have risen, while certain subsectors remain out of favor despite generally healthy business fundamentals.
Summary
- Lincoln’s Capital Advisory Group on the four themes shaping private credit for larger issuers.
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Key Private Credit Themes for Q4 2026
01
Large issuer (i.e., more than $500 million of commitments) dynamics have become more complex due to reduced hold sizes requiring more extensive syndication, with historically observed pricing benefits over smaller transactions converging.
02
Mid-sized issuer (i.e., $100 million to $500 million of commitments) spreads and terms have generally been extremely competitive for conforming credit profiles.
03
The maturity wall for 2021-2022 vintage assets has become real, with sponsors seeking creative capital structure alternatives to extend runway or drive distributions to paid-in capital (DPI), while foreclosure activity in these vintages continues to increase.
04
The market for software credit has stabilized at a lower leverage level with wider spreads, while adjacent sectors perceived to be subject to technology disruption without the recurring revenue stream of a typical software business are difficult to finance.
Recent Lincoln Momentum
As execution complexity increases, running a competitive financing process, targeting the right lender universe and exploring multiple structural alternatives are critical to optimizing terms and achieving a favorable outcome.
Lincoln International’s Capital Advisory Group is uniquely positioned to navigate this complex environment, having advised on more than 20 transactions through August 2026, including several large (more than $500 million) growth / dividend recapitalizations and upper-middle market private credit restructuring transactions.
Selected Significant Transactions
