Tree Line Capital Partners has closed its fourth flagship fund with $1.1 billion in total capital commitments, marking the largest raise in the firm’s history. The vehicle, Tree Line Direct Lending IV, LP, exceeded its $550 million equity target, finishing with $724 million in equity commitments plus $355 million in leverage commitments.
The San Francisco based private credit manager said the fund will support its core strategy of lending to U.S. lower middle market companies, a focus it has pursued since launching in 2014. Tree Line said the fund attracted limited partners from seven countries across North America, Europe, and Asia, and was offered in both levered and unlevered structures, drawing participation from existing and new investors, including strong interest from the U.S. pension community.
Probitas Partners served as placement agent and Paul Hastings served as counsel for the fund.
Tree Line said it manages $5.0 billion in AUM and focuses on direct lending to lower middle market borrowers in North America, providing first lien term loans and equity co investments. The firm targets companies with $5 million to $30 million of EBITDA, with transaction sizes up to $150 million, and said it has completed more than 469 transactions across acquisitions, recapitalizations, refinancings, expansion projects, and other growth capital needs.
KEY QUOTES
“The successful close of Tree Line Direct Lending IV underscores the strength and consistency of Tree Line’s brand, track record and strategy. The combination of long-term and new limited partners coming into this fund highlights the growing support for lower middle-market direct lending. We believe that the credit attributes in our market segment are both highly compelling and differentiating, relative to larger market segments, and we’re well-positioned to address the continued demand in our market and portfolio.”
Tom Quimby and Jon Schroeder, Managing Partners, Tree Line Capital Partners
