#United States #New York #private credit #Willow Tree #HarbourVest

Willow Tree Credit Partners Closes Private Credit Continuation Vehicle

On August 6, 2026, Willow Tree Credit Partners LP, a prominent name in the middle market private credit sector, announced the completion of a significant financial transaction. The firm successfully closed its private credit continuation vehicle, known as Willow Tree Fund II-CV, LP, along with its parallel entities, which collectively represent an impressive transaction value of approximately $730 million.

The transaction was spearheaded by HarbourVest Partners, a distinguished entity in the investment landscape, and involved a syndicate of institutional investors. This private credit continuation vehicle has been particularly established to acquire a diversified portfolio that consists of roughly 130 securities. These include primarily first-lien loans and investments in sponsor-backed companies drawn from the foundational assets of Willow Tree Fund II LP and its associated funds, which originated in late 2020 to early 2021.

This strategic move not only allows Willow Tree to maintain management of the underlying portfolio but also provides the opportunity for existing limited partners to choose between realizing liquidity or continuing their exposure through the newly created continuation vehicle.

A Strategic Step for Investors
Tim Lower, Founder and CEO of Willow Tree, emphasized the importance of this continuation vehicle, stating that it reflects the robustness and dependability of the portfolio built under Fund II. He reiterated the firm’s commitment to offering solutions that cater to their limited partners at every stage of a fund's lifecycle, noting that continuation vehicles are increasingly crucial tools within private markets. Lower stated, “This structure demonstrates how they can benefit existing investors, new capital partners, and managers while preserving high-quality assets.”

HarbourVest's involvement in this deal underscores the strength and credibility of Willow Tree's platform. Sean Gillespie, a Principal at HarbourVest, enthusiastically expressed his excitement about collaborating with Tim Lower and the Willow Tree team, noting the platform's exceptional track record of delivering strong returns for investors. He further accentuated that this transaction underscores their capability to lead and structure credit secondaries solutions for top-tier general partners while gaining exposure to a high-quality and diversified portfolio of senior loans.

Support from Leading Advisors
The transaction was supported by major financial advisory firms, with Evercore serving as the financial advisor guiding Willow Tree through the process. Legal counsel for Willow Tree was represented by Morgan Lewis, while Kirkland & Ellis provided legal support to HarbourVest. This collaboration among industry leaders reflects a well-structured partnership aimed at driving successful outcomes in the ever-evolving private credit market.

About Willow Tree and HarbourVest
Willow Tree Credit Partners, established in 2017 by Tim Lower, is recognized as a private credit alternatives firm headquartered in New York, with additional offices in Miami and Chicago. The firm specializes in providing senior secured, floating-rate middle-market loans to businesses backed by financial sponsors and family-owned enterprises, focusing on bespoke capital solutions for firms with EBITDA in the range of approximately $5 to $75 million.

On the other hand, HarbourVest is an independent, global private markets firm with a notable track of 44 years of experience, boasting over $160 billion in assets under management as of March 31, 2026. HarbourVest offers clients access to an array of investment avenues, including primary funds, secondary transactions, direct co-investments, along with private credit and real assets. Their extensive global network and team of more than 1,200 professionals across Asia, Europe, and the Americas solidify their reputation as a formidable leader in the investment sector.

This development in the private credit sector signals a continued evolution of financial strategies, emphasizing both liquidity and portfolio management for existing investors within the context of a strong market outlook.