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Bailey McCann, Opalesque New York:

Middle market private equity investment returns are outpacing the S&P 500, according to a new index report from Lincoln International.

In 2018, equity values of the Lincoln Middle Market Index grew by 13.8%, while the S&P 500 declined by 6.2%. Enterprise value growth for the Lincoln MMI increased by 6.7% for the year, compared to a decline of 4.2% in the enterprise values of the S&P 500.

The Lincoln MMI is a barometer of the performance of private middle market companies in the U.S., primarily those owned by private equity firms.

On a sector basis, Technology was the best performing industry for the third consecutive year and was the only industry to increase in value in Q4 2018. Energy companies were down in Q4, building on a trend that began as volatility returned to commodity prices over the past year. Regulatory concerns for renewable energy companies have also impacted investment performance for those companies.

Industrial companies, which had been the highest performers in the first three quarters of 2018, saw a significant decline in Q4, potentially reflecting macroeconomic concerns around tariffs and trade issues. Industrial companies fell 4.9% in Q4 compared with positive growth of 13.3% through Q3 2018.

The full index report is available here......................

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