Willow Tree Closes Direct Lending Fund at $2.4B

Willow Tree Credit Partners, a New York-based credit firm that targets senior secured, floating rate loans in middle-market companies that are either family-owned or backed by a private equity firm, closed its direct lending fund at $2.4 billion, far surpassing its initial target.

Since Willow Tree’s inception in 2017, the team has closed over 100 transactions supporting the acquisition and growth of middle market companies with EBITDA between $5 and $75 million.

Willow Tree was founded by Timothy Lower, who was a founding member of the direct lending business at Ares Management.

“We appreciate the support of our existing and new limited partners as we continue to expand our credit alternatives platform,” said CEO and CIO Lower. “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.”

Other managers that recently raised new private debt funds include Sagard Holdings Manager, Audax Private Debt and Crescent Capital Group, supporting investors’ continued interest in the sector amid a rising interest rate environment.

Last year was the third year in a row in which capital raised for private debt eclipsed $200 billion, with fund managers accumulating $200.4 billion across 159 vehicles, according to PitchBook.