Key Takeaways
- • PGIM, the asset management arm of Prudential Financial, and LGT Capital Partners acted as co-lead investors in a $680 million private credit continuation vehicle managed by Tree Line Capital Partners.
- • The continuation vehicle acquired a diversified portfolio of senior secured, first-lien loans to more than 60 US lower middle market companies.
- • The transaction provides liquidity to existing investors in several Tree Line direct lending funds.
- • Morgan Lewis advised PGIM and LGT Capital Partners on the transaction, with a team led by partner Ted Craig.
Summary
Morgan Lewis advised PGIM, the asset management business of Prudential Financial, Inc., and LGT Capital Partners as co-lead investors in a $680 million private credit continuation vehicle managed by Tree Line Capital Partners, according to a Morgan Lewis press release dated November 6, 2026. Tree Line is a San Francisco-based direct lender focused on the US lower middle market.
The continuation vehicle acquired a diversified portfolio of senior secured, first-lien loans to more than 60 US lower middle market companies. The transaction provides liquidity to existing investors in several Tree Line direct lending funds, offering them an exit route without requiring the underlying loans to be sold into the open market.
The release positions the deal as evidence of the growing importance of continuation vehicles as a liquidity solution within the evolving private credit secondaries market. As private credit fund structures mature, such vehicles allow managers to extend holding periods for high-quality loan portfolios while giving existing limited partners the option to realize liquidity.
The Morgan Lewis team advising PGIM and LGT Capital Partners was led by partner Ted Craig, with partners Mark Opitz, Davis Truslow, Dan Nelson, Meghan McCarthy, and Marion Barish, and associates David Ambler, Paige Brown, Thomas Crociata, Thomas Turgeon, and Ian Tomesch. The release did not disclose pricing terms or the specific companies in the loan portfolio.
The continuation vehicle acquired a diversified portfolio of senior secured, first-lien loans to more than 60 US lower middle market companies. The transaction provides liquidity to existing investors in several Tree Line direct lending funds, offering them an exit route without requiring the underlying loans to be sold into the open market.
The release positions the deal as evidence of the growing importance of continuation vehicles as a liquidity solution within the evolving private credit secondaries market. As private credit fund structures mature, such vehicles allow managers to extend holding periods for high-quality loan portfolios while giving existing limited partners the option to realize liquidity.
The Morgan Lewis team advising PGIM and LGT Capital Partners was led by partner Ted Craig, with partners Mark Opitz, Davis Truslow, Dan Nelson, Meghan McCarthy, and Marion Barish, and associates David Ambler, Paige Brown, Thomas Crociata, Thomas Turgeon, and Ian Tomesch. The release did not disclose pricing terms or the specific companies in the loan portfolio.
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