Tree Line Raises $1.1 Billion for Fourth Flagship Fund

The private credit firm will use the capital to continue lending to lower middle-market companies in North America.

Jan. 28, 2026 at 4:39pm by Ben Kaplan

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Tree Line Capital Partners, a private credit asset management firm, has closed its fourth flagship fund with $1.1 billion in total capital commitments. The fund, called Tree Line Direct Lending IV, LP, exceeded its $550 million equity target and will support the firm's core investment strategy of lending to U.S. lower middle-market companies.

Why it matters

The successful fundraise underscores the growing demand for lower middle-market direct lending, which Tree Line believes offers compelling credit attributes compared to larger market segments. The firm's ability to raise such a substantial amount of capital will allow it to continue providing financing solutions to smaller businesses that may have difficulty accessing traditional bank lending.

The details

The $1.1 billion fund includes $724 million in equity commitments and $355 million in leverage commitments. It drew support from a diverse group of limited partners across North America, Europe, and Asia, including both existing and new investors, particularly from the U.S. pension community. Tree Line's managing partners, Tom Quimby and Jon Schroeder, believe the firm's strong brand, track record, and strategy position it well to address the continued demand in the lower middle-market.

  • Tree Line Capital Partners closed its fourth flagship fund on January 28, 2026.

The players

Tree Line Capital Partners

A private credit asset management firm focused on direct lending to the lower middle-market, with $5.0 billion in AUM.

Tom Quimby

Managing Partner at Tree Line Capital Partners.

Jon Schroeder

Managing Partner at Tree Line Capital Partners.

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What they’re saying

“The successful close of Tree Line Direct Lending IV underscores the strength and consistency of Tree Line's brand, track record and strategy. The combination of long-term and new limited partners coming into this fund highlights the growing support for lower middle-market direct lending. 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.”

— Tom Quimby and Jon Schroeder, Managing Partners, Tree Line Capital Partners (BusinessWire)

What’s next

Tree Line Capital Partners plans to continue its core investment strategy of providing first lien term loans and equity co-investments to lower middle-market borrowers with between $5M-$30M of EBITDA in North America.

The takeaway

Tree Line's ability to raise $1.1 billion for its fourth flagship fund demonstrates the growing demand for direct lending to smaller businesses that may have difficulty accessing traditional bank financing. The firm's focus on the lower middle-market, combined with its strong track record and relationships in the private equity community, position it well to continue supporting the financing needs of this important segment of the economy.