Willow Tree Credit Partners closes second CLO with $502.3m

Willow Tree Credit Partners has announced the closing of its second collateralised loan obligation (CLO) at $502.3m (£406.97m).

The Willow Tree CLO II closed within two months of Willow Tree’s first CLO, towards the end of last year. Both CLOs focus on middle market direct lending in the US.

The CLO will be managed by Willow Tree and all of the equity interests will be retained by its second managed fund complex.

Read more: Moody’s: Middle-market CLO issuance on the rise

“The issuance of two middle market CLOs late in 2024 represents a key milestone in the expansion of our platform,” said Jim Roche, Willow Tree’s chief credit officer.

“We are grateful for the support of all the existing and new investors that have made this possible.”

GreensLedge Capital Markets served as the sole placement and structuring agent, while Dechert provided legal representation for Willow Tree.

“We extend thanks as well to GreensLedge and Dechert for all their endeavours toward this accomplishment,” added Roche.

Read more: More European private credit CLOs expected in 2025

“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 in 2017, Willow Tree has completed more than 100 transactions through its managed funds and accounts, by focusing on the acquisition and growth of middle market companies in the US.

Read more: Crestline Investors closes $1bn direct lending CLO