Tree Line Capital Secures $680 Million Continuation Vehicle

PGIM and LGT Capital Partners backed a new fund to hold loans from over 60 lower middle-market businesses.

Updated on Oct. 28, 2026 in Business Strategy

Isometric editorial illustration of industrial steel beams and concrete pillars arranged in a geometric grid, representing private credit secondary structures. — Tree Line Capital Partners has launched a $680 million continuation vehicle, supported by PGIM and LGT Capital Partners, to manage a portfolio of private credit assets. AI Illustration. Upload story photo >

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Tree Line Capital Partners has launched a $680 million continuation vehicle supported by PGIM and LGT Capital Partners. This fund acquired a portfolio consisting of senior secured, first-lien loans tied to more than 60 U.S. lower middle-market companies.

Why it matters

This transaction allows existing investors to access liquidity while keeping the underlying loan assets under the management of Tree Line Capital Partners. It reflects a growing trend in secondary market activity as firms seek new ways to manage private credit investments.

The vehicle includes senior secured, first-lien loans for more than 60 U.S. lower middle-market businesses. Evercore reported that $121 billion in total secondary transaction volume occurred during the first half of 2026.

The players

Tree Line Capital Partners

This firm manages the continuation vehicle and oversees the portfolio of senior secured loans.

PGIM

This global investment manager is backing the continuation vehicle as part of a $1 billion private credit secondary strategy.

LGT Capital Partners

This investment firm acted as the co-lead investor for the $680 million transaction.

Campbell Lutyens

This firm served as the financial adviser throughout the secondary transaction process.

Morgan, Lewis & Bockius

This global law firm provided legal counsel to PGIM for the recent deal.

The details

Campbell Lutyens acted as the financial adviser for the deal, while Morgan, Lewis & Bockius provided legal counsel to PGIM. The move is part of a broader push by PGIM to allocate $1 billion into private credit secondaries over the next two years.

October 28, 2026: The $680 million vehicle deal was formally announced.
First half of 2026: The market saw $121 billion in secondary transaction volume.
2009: LGT Capital Partners began its active credit secondaries investment strategy.

Market Landscape

This deal follows the record-setting pace of the $121 billion of secondary transaction volume recorded by Evercore in H1 2026. It underscores the ongoing industry push to provide liquidity for private credit assets amid broader market expansion.

This move enables institutional investors to manage their liquidity needs without forcing the sale of underlying middle-market company loans. It highlights the increasingly sophisticated financial structures used to keep capital active in the private credit sector.

The takeaway

The rise of continuation vehicles provides a vital liquidity tool for investors looking to hold long-term private credit assets. Market participants should expect this growth to continue as firms seek to bypass the current investor liquidity squeeze.