New York-based Willow Tree Credit Partners closed its latest direct lending fund, handily exceeding its initial target with $2.4 billion in committed capital.
The fund invests in 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 the firm’s 2017 inception, the team has completed over 100 transactions supporting the acquisition and growth of companies with EBITDA between $5 million and $75 million.
“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,” said Jim Roche, Willow Tree chief credit officer. “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.”
Prior to joining Willow Tree in February 2017, Roche was a managing director at GSO, Blackstone’s credit arm. While at Blackstone/GSO, he led the private origination and execution effort for the firm’s sub-advised BDC platform, FS Investment Corp. and related funds, through its formative period.
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 Lower, who serves as CEO and CIO at Willow Tree. “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.”
