The Cliffwater Corporate Lending Fund, which manages approximately USD 33 billion in assets, is a fund with periodic redemption terms. If redemption requests reach 5%, it must return 5% of the fund's value to investors on a quarterly basis. If redemption requests exceed 5%, Cliffwater has the authority to redeem up to 7% of the fund’s shares. According to media reports, the firm's flagship private credit fund may face redemption requests exceeding 7%.
According to media reports citing informed sources, Cliffwater LLC's flagship private credit fund may face redemption requests exceeding 7%.
The Cliffwater Corporate Lending Fund, which manages approximately $33 billion in assets, is a periodic redemption fund. If redemption requests reach 5%, it must return 5% to investors on a quarterly basis. If redemption requests exceed 5%, Cliffwater has the authority to redeem up to 7% of the fund’s shares.
Informed sources indicated that the company has not yet decided whether to cap the redemption ratio at 5% or 7%. The fund’s redemption window will close on Tuesday.
Founded by Stephen Nesbitt, Cliffwater is the latest firm in the $1.8 trillion private credit market to experience investor withdrawals due to concerns over loan quality and exposure to software companies potentially disrupted by artificial intelligence.
Recently, Blackstone and Blackrock have been forced to impose redemption restrictions, signaling an emerging liquidity crisis in the private credit markets of the UK and the US.
