Willow Tree Credit Partners Closes Latest Direct Lending Fund Complex at $2.4 Billion

Final close significantly exceeded initial target

NEW YORK--(BUSINESS WIRE)--Willow Tree Credit Partners (“Willow Tree”), a credit alternatives platform focused on providing flexible capital structure solutions and value add services to family-owned and financial sponsor-backed middle market businesses, today announced the close of its latest direct lending fund complex.

The fund focuses on senior secured, floating rate loans to middle market companies that are either undergoing a change of control or recapitalization or in need of growth capital. Since inception, Willow Tree’s managed funds and accounts have closed over 100 transactions supporting the acquisition and growth of middle market companies.

"We appreciate the support of our existing and new limited partners as we continue to expand our credit alternatives platform. We are excited for the next phase of growth at Willow Tree as we rapidly deploy capital in what we believe to be an attractive vintage for floating rate private credit strategies,” said Tim Lower, Willow Tree Chief Executive Officer and Chief Investment Officer.

“We are proud of the niche our team has carved out in the middle market and expect continued strong demand from borrowers for our bespoke direct lending solutions. Given the backdrop of rising rates and continued resilience of well positioned middle market borrowers, we consider this to be an attractive deployment environment for managers and asset selectors focused on recession resistant businesses in attractive end markets and industry sectors,” added Jim Roche, Willow Tree Chief Credit Officer.

The fund, which includes parallel accounts and leverage, was supported by a diverse group of limited partners including public and corporate pension plans, insurance companies, registered investment advisors, family offices, foundations and endowments.

About Willow Tree Credit Partners LP

Founded in 2017 by Timothy Lower, Willow Tree Credit Partners is a credit alternatives platform focused on providing flexible capital structure solutions and value add services to family-owned and financial sponsor-backed middle market businesses and creating alpha and income for investors seeking attractive risk adjusted returns. The firm’s core focus is on floating rate assets at the top of the capital structure with a primary goal of preserving capital. Through a multi-pronged origination effort that includes a growing network of Operating Advisors and partners, Willow Tree targets borrowers with EBITDA between $5 and $75 million.