Willow Tree has closed a $730 million private credit continuation vehicle led by HarbourVest.
The vehicle holds approximately 130 securities, primarily first-lien loans to sponsor-backed companies. Existing limited partners were given the option to take liquidity or to roll their interests into the new structure.
Continuation vehicles began in private equity and have moved steadily into credit. They allow a manager to hold assets beyond an original fund term while offering investors who want an exit a priced route out.
The governance question is well rehearsed: the manager sits on both sides of a transaction in which it sets the terms. Third-party lead investors, independent valuation and a genuine election for existing holders are what make the structure defensible.
For family offices holding credit fund interests approaching term, these transactions are becoming a routine liquidity event rather than an exception, and warrant the same diligence as a new commitment.
Secondaries and liquidity solutions form one of the private investment workshop tracks at UKFOS Oxford 2026.
UKFOS Editorial · 25 AUGUST 2026