Cliffwater Caps Redemptions at 5% Amid Investor Requests to Withdraw 16%
Cliffwater LLC's flagship private credit fund, the Cliffwater Corporate Lending Fund, has limited redemptions to 5% in Q3 after investors requested withdrawals of approximately 16%. In a letter seen by Bloomberg, the firm stated it will fulfill about one-third of these requests. CEO Stephen Nesbitt emphasized that the company remains committed to acting in shareholders' best interests and noted that those who have sought cash since Q1 have received around 78% of their capital back. This is not the first time Cliffwater has faced increased redemption demands; investors requested redemptions of about 17% in Q2, with only a portion fulfilled. The fund maintains sufficient liquidity to meet its quarterly cap for over a year without selling assets. Nesbitt expressed optimism regarding private credit's resilience amid broader industry trends where funds are limiting withdrawals due to concerns around asset quality and valuations. Blackstone’s Blackstone Private Credit Fund (BCRED) also capped redemptions at 5% after investors submitted $4.3 billion in repurchase requests for the third quarter, with some of that demand stemming from prior quarters.
Tickers: $BX
Topics: Investor Redemptions Liquidity Management Private Credit