Tech Is 'on Fire' in Private Equity Market, Lincoln Int'l's Kahn Says

The video discusses the definition and performance of middle market companies, focusing on an index created with data from 1500 privately held companies. It highlights the growth of these companies compared to public counterparts, driven by performance rather than multiples. Sector analysis shows technology leading, while energy lags. Concerns about a private equity bubble are raised, with high purchase multiples and leverage noted. The market is currently a sellers market, with private equity firms looking to sell high-value assets. Valuation concerns include pro forma adjustments used to justify purchase prices.

What factors are driving the growth in value of private companies according to the index?

What is the average purchase price multiple for portfolio companies mentioned in the discussion?

What are pro forma adjustments, and why are they significant in company valuations?