Daily News: February 15, 2018

Tree Line Expands Lower Middle Market Lending with $267MM of New Capital

Tree Line Capital Partners expanded its lower middle market direct lending platform with $267 million of new capital.

The capital, from new debt and equity commitments received in 2017, was invested across the Tree Line platform in its funds, Tree Line Direct Lending and Tree Line Credit Strategies. The capital commitments were received from, among others, the University of Texas Investment Management Company, ING Capital EverBank, City National Bank, Key Bank, East West Bank, Sterling National Bank and Hitachi Capital America.

Tree Line manages more than $550 million in private capital and directly lends to lower middle market companies with between $2 million and $25 million in EBITDA in transactions up to $100 million. Since October 2014, Tree Line has invested more than $550 million in direct loans and has established a significant presence as a dedicated direct lender to lower middle market companies.

“We are very pleased to have expanded the Tree Line direct lending platform with continued support from our investors,” said Jon Schroeder, managing partner at Tree Line. “The asset growth achieved gives Tree Line further reach into its market. In 2017, we agented transactions ranging from $8 million to $100 million.”

Tree Line also promoted Frank Cupido to partner. Cupido previously served as a managing director and is actively involved in origination, underwriting and asset management.

“We are thrilled to have Frank join us as a partner,” said Tom Quimby, managing partner at Tree Line. “He has worked with Jon and me for 11 years and has demonstrated his ability to be a leader at our firm and in our market. Our young, dynamic team is well-positioned to further build upon the long-term relationships we’ve established with our borrowers, sponsors and investors.”

Recent senior secured financing transactions by the firm, as administrative agent, include:

  • KLH Capital’s add-on acquisition for BluSky Restoration
  • Lariat Partners’ acquisition of Offen Petroleum
  • LaSalle Capital’s strategic investment in Gen3 Marketing