Willow Tree Credit Partners LP, a private credit alternatives firm, announced the closing of Willow Tree CLO II, which is a $502.3 million Collateralized Loan Obligation (CLO).
Willow Tree’s second CLO, closing within 2 months of its first CLO, signifies Willow Tree’s strong “positioning and expertise within middle market direct lending.”
The CLO will be managed by Willow Tree and all of the “equity interests will be retained by its second managed fund complex.”
GreensLedge Capital Markets served as the “sole placement and structuring agent.”
Dechert provided “legal representation” for Willow Tree.
Jim Roche, Willow Tree Chief Credit Officer said:
“The issuance of two middle market CLOs late in 2024 represents a key milestone in the expansion of our platform. We are grateful for the support of all the existing and new investors that have made this possible. We extend thanks as well to GreensLedge and Dechert for all their endeavors toward this accomplishment. We expect the successful placement of rated debt securities through a BBB- layer for both CLOs to materially benefit our investor base. It is a testament to the efforts of our team toward building a quality middle market direct lending portfolio and represents an exciting product line extension opportunity for our firm.”
Since its inception back in 2017, Willow Tree has reportedly completed over 100 transactions through its managed funds and accounts, “driving the acquisition and growth of middle market companies.”
As noted in the update, Willow Tree Credit Partners, LP is a fast-growing private credit alternatives firm “founded in 2017 by industry veterans Tim Lower and Jim Roche.”
Headquartered in New York City, with a satellite office in Miami, Willow Tree currently manages multiple funds and accounts with “approximately $5 billion of AUM and has closed over 100 credit investments to date.”
The firm explained that it provides flexible capital structure solutions and value-add services “to family-owned and financial sponsor-backed middle market businesses.”
Its core focus is senior secured, floating rate middle market loans “to recession-resistant businesses.”
Through a “multi-pronged” origination effort that includes a growing network of operating advisors and financial sponsors, Willow Tree “sources and structures capital solutions for businesses with EBITDA between $5 and $75 million.”
