PRIVATE CREDIT
Willow Tree Credit Partners Closes $730m Continuation Vehicle Led by HarbourVest
The middle market credit firm gives existing limited partners in its late 2020/early 2021 vintage fund the option to realise liquidity or roll exposure into the new vehicle.
Willow Tree Credit Partners LP, a middle market private credit firm, has announced the successful closing of Willow Tree Fund II-CV, LP and its parallel vehicles, a private credit continuation vehicle complex with assets representing an aggregate transaction value of approximately $730 million. The transaction was led by HarbourVest Partners, with participation from a syndicate of institutional investors and Willow Tree. The continuation vehicle was established to acquire a diversified portfolio of approximately 130 securities, primarily first-lien loans to sponsor-backed and family-owned businesses, from Willow Tree Fund II LP and its parallel funds, a late 2020/early 2021 vintage.
Liquidity option for existing limited partners
The transaction allows Willow Tree to continue managing the underlying portfolio while giving existing limited partners the option to realise liquidity or maintain exposure through the continuation vehicle. Tim Lower, Founder and Chief Executive of Willow Tree, said: "We believe this continuation vehicle reflects the strength and consistency of the portfolio we've built in Fund II and our commitment to delivering solutions that serve our limited partners at every stage of a fund's life. Continuation vehicles are becoming an increasingly important tool across private markets." He added that the firm was "grateful for their partnership and conviction" from HarbourVest.
HarbourVest cites platform strength
Sean Gillespie, Principal at HarbourVest Partners, said: "They have built an exceptional platform and delivered consistently strong returns for their investors. We believe this transaction showcases our ability to lead and structure credit secondaries solutions for leading GPs, while gaining exposure to a high-quality, diversified portfolio of senior loans." Evercore served as financial adviser on the transaction. Morgan Lewis served as legal counsel to Willow Tree and Kirkland & Ellis served as legal counsel to HarbourVest. Willow Tree was founded in 2017 by Tim Lower and is headquartered in New York, with satellite offices in Miami and Chicago, focusing on senior secured, floating rate loans to businesses with EBITDA of approximately $5 million to $75 million. HarbourVest has more than $160 billion in assets under management as of 31 March 2026.