Cliffwater is facing redemption requests of more than 7% from investors in its flagship private credit vehicle, the Cliffwater Corporate Lending Fund, according to a report by Bloomberg citing people familiar with the matter.
The $33bn fund is structured as an interval vehicle, requiring it to repurchase up to 5% of its outstanding shares each quarter when redemption requests reach that level. The firm has discretion to increase that threshold to as much as 7% if demand for withdrawals exceeds the base limit.
The current tender window is set to close on Tuesday, with the firm reportedly yet to determine whether it will cap repurchases at 5% or allow redemptions up to 7%.
Cliffwater has pushed back against recent concerns about asset quality in the sector, arguing that recent selling pressure in private credit funds reflects investor sentiment rather than deterioration in underlying fundamentals.
In November, the Cliffwater Corporate Lending Fund received an A credit rating from S&P Global Ratings, which cited the fund’s diversification, relatively low leverage, and strong asset quality.
