Tree Line Capital Partners just closed its fourth main fund, Tree Line Direct Lending IV, LP, pulling in a total of 1.1 billion. Thats the biggest raise theyve pulled off since they started back in 2014. It really shows investors trust their approach and believe in private credit, especially in the lower middle market.
This fund didnt just meet its goal it blew past it. Tree Line aimed for 550 million in equity, but they landed 724 million, plus another 355 million in leverage commitments. Both long-time backers and new investors showed up in force.
Why This Funding MattersTree Lines flagship fundraise occurs in an era where lower middle-market companies, firms with annual earnings before interest, taxes, depreciation, and amortization EBITDA in the 5-30 million range, are beginning to rely more on direct lenders for bespoke financing solutions.
