Meeting the Growing Need for Tech Lending
Companies’ transition to SaaS and the resultant growth in tech-focused private equity has created a need for lenders with a demonstrated track record in the sector.
Tree Line has maintained a dedicated focus on technology borrowers with flexibility to structure EBITDA-based and ARR-based loans.
Tree Line’s Edge in Tech Lending
Since inception, Tree Line has exclusively targeted lower middle market borrowers and private equity firms.
Our long-term relationship approach has resulted in the majority of our transactions coming from sponsors or borrowers with whom we’ve worked before. We seek to establish lending partnerships capable of providing significant post-close support, which has helped us close over $400M in tech lending commitments. This approach combined with our experience in lower middle market tech lending uniquely positions us as a go-to provider for sponsors seeking $10M+ ARR loans.
> $475M
Tech Lending Commitments
41
Transactions
90 %+
Agent or Lead Lender
ARR & Tech Lending Criteria
First Lien & Last Out
Loan Structure
$10M – $30M
Loan Sizes
$10M+
Annual Recurring Revenue
90% gross / 100%+ net
Customer Retention
< 40%
Loan to Value
1.0x – 2.25x
ARR Leverage
Key Business Criteria
Market leader with limited competitors
Significant diversity among customer base
Support of experienced equity partner
Adequate liquidity if not profitable
Select Transaction Examples
May 2021
Agent & Sole Lender
First Lien Term Loan & Revolver
A Portfolio Company of
March 2021
Sole Last Out Lender
ARR-Based Unitranche Last-Out Term Loan
A Portfolio Company of
February 2021
Sole Last Out Lender
ARR-Based Unitranche Last-Out Term Loan
A Portfolio Company of
December 2020
Lead Arranger
Revolver and Unitranche Last-Out Term Loan
A Portfolio Company of
March 2020
Agent & Lead Arranger
Unitranche Last-Out Term Loan & Equity Co-Investment
A Portfolio Company of
June 2019
Agent & Lead Arranger
First Lien Term Loan
A Portfolio Company of
April 2019
Agent & Sole Lender
First Lien Term Loan & Revolver
A Portfolio Company of
April 2019
Agent & Sole Lender
First Lien Term Loan & Revolver
A Portfolio Company of
September 2017
Agent & Sole Lender
Unitranche Last-Out Term Loan
A Portfolio Company of
