Tree Line Capital Partners has raised $1.1bn (£800.4bn) for its fourth direct lending fund at close, exceeding its $550m equity target.
In total, Tree Line Direct Lending IV secured $724m of equity commitments alongside $355m in leverage, making it the Tree Line’s largest fundraise to date, according to the $5bn private credit asset manager.
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The fund attracted capital from both existing and new limited partners across North America, Europe and Asia, with strong interest from the US pension sector.
“The combination of long-term and new limited partners coming into this fund highlights the growing support for lower middle-market direct lending,” said Tom Quimby and Jon Schroeder, managing partners at Tree Line. “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.”
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The fund will focus on direct lending to US lower middle-market companies, a strategy Tree Line has pursued since 2014.
Probitas Partners served as placement agent, while Paul Hastings acted as legal counsel to the fund.
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