Cliffwater private credit fund caps Q3 redemptions at 5%

  • Cliffwater Corporate Lending Fund limited third-quarter redemptions after investors requested approximately 16% of shares.
  • 5% was the fund’s quarterly withdrawal cap, satisfying approximately one-third of requests.
  • Investors sought 17% of shares in Q2 and 14% in Q1, according to shareholder letters.

Cliffwater Corporate Lending Fund will fulfill approximately one-third of investor redemption requests after shareholders sought to redeem approximately 16% of shares in the third quarter. The fund capped withdrawals at 5%, continuing a pattern of limits as private credit managers face concerns over asset quality and valuations, particularly in software lending. Chief Executive Officer Stephen Nesbitt said investors requesting cash since the first quarter have received approximately 78% of their capital and described the firm as optimistic about private credit’s resilience. Blackstone’s $77.2 billion private credit fund also capped withdrawals at 5% after receiving $4.3 billion of third-quarter repurchase requests.

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