Private credit firm Willow Tree Credit Partners is exploring options including the sale of a minority stake, according to people with knowledge of the matter.
Willow Tree is working with an adviser to solicit interest in the stake, said the people, who requested anonymity to discuss confidential information. No final decision has been made, they said.
A Willow Tree representative declined to comment.
The New York-based firm, which has about $5 billion in assets under management, was founded in 2017 by Tim Lower and Jim Roche. The firm focuses on senior secured, floating rate loans to middle-market businesses that generally have earnings before interest, taxes, depreciation and amortization of between $5 million and $75 million.
While the alternative asset management industry is undergoing a period of consolidation, some firms have turned to minority stake transactions to obtain liquidity for firm founders or as part of broader strategic partnerships.
Mizuho Financial Group in September said it purchased a minority stake in Golub Capital’s management companies as part of a strategic partnership, while in January, Sixth Street said it would manage $13 billion of capital for Northwestern Mutual in a transaction that gave the insurer a minority equity stake in the firm.
Last month, AXA IM Prime said that through its GP stakes strategy, it completed the purchase of a minority stake in Monroe Capital alongside Wendel Group’s purchase of a majority stake in the private credit firm.
