S&P and Lincoln Launch New Private Loan Indices
S&P Dow Jones Indices, in collaboration with investment bank Lincoln International, has launched the S&P Lincoln Senior Debt Index series. The new indices are designed to serve as benchmarks for the private loan market, providing greater transparency into its performance.
- The private credit market has seen substantial growth, with estimates suggesting it could expand from around $3 trillion at the start of 2025 to approximately $5 trillion by 2029. This expansion has amplified the need for standardized performance benchmarks. - Previously, the indices were known as the U.S. Lincoln Senior Debt Index and the European Lincoln Senior Debt Index. S&P Dow Jones Indices will now be the sole publisher, calculator, and administrator of the rebranded index family. - The collaboration leverages Lincoln International's extensive private market database and credit insights with S&P DJI's experience in index design and governance to bring more transparency to the asset class. - The new indices will track the fair value of direct lending credit investments on a quarterly basis for both the U.S. and European markets. - The indices are designed to measure the performance of illiquid senior debt facilities that are primarily issued to companies owned by private equity firms. - A key objective of these indices is to allow investors to better understand the risk and return trade-offs between public and private debt issuance. - The launch is part of a broader trend to bring more robust data and transparency to private markets as they mature and attract more investor participation. - S&P DJI and Lincoln International intend to broaden their private market index offerings in the future, with plans for increased publication frequency and greater granularity.
