Cliffwater’s $33B Private Credit Fund to See 7%-Plus Redemptions

Group 1 - Cliffwater LLC is experiencing redemption requests exceeding 7% from its flagship private credit fund, indicating investor concerns [1][3] - The Cliffwater Corporate Lending Fund, valued at $33 billion, is structured as an interval fund, allowing repurchase of up to 5% of shares quarterly, with discretion to repurchase up to 7% if requests exceed that threshold [2][3] - The firm is facing challenges in the $1.8 trillion private credit market, with investor exodus driven by concerns over loan quality and exposure to software companies vulnerable to AI advancements [3][4] Group 2 - BlackRock Inc. recently capped withdrawals from its HPS Corporate Lending Fund at 5% after facing nearly double that amount in redemption requests, marking a significant instance of limiting redemptions in the private credit sector [4] - In contrast, Blackstone Inc. allowed a record 7.9% redemption from its BCRED fund, utilizing $150 million from senior leaders and $250 million from the firm to manage outflows [5] - Cliffwater has defended the quality of its underlying assets, asserting that market sentiment rather than fundamentals is driving the selloff, and the fund received an A credit grade from S&P Global Ratings for its diversification and asset quality [6]