Tree Line Capital Partners closed its fourth flagship fund with $1.1 billion in total capital commitments, the firm announced today. Tree Line Direct Lending IV exceeded its $550 million equity target, with $724 million in equity commitments in addition to $355 million in leverage commitments. The commitments represent the largest capital raise to date for Tree Line Capital Partners and will support the firm’s core investment strategy. The fund is focused on lending to U.S. lower middle-market companies, a strategy that the firm has successfully implemented since its launch in 2014.
The fund drew a diverse group of limited partners representing seven countries across North America, Europe and Asia. The fund was offered to investors in a levered and unlevered structure and drew support from both existing and new limited partners, with particular interest from the U.S. pension community.
“The successful close of Tree Line Direct Lending IV underscores the strength and consistency of Tree Line’s brand, track record and strategy,” Tom Quimby and Jon Schroeder, managing partners of the fund, jointly said. “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.”
Probitas Partners served as placement agent and Paul Hastings served as counsel for the fund.
