Private credit remains under pressure, with $33 billion fund redemption requests potentially exceeding 7%

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According to media reports citing sources familiar with the matter, Cliffwater LLC’s flagship private credit fund may face redemption requests exceeding 7%.

The Cliffwater Corporate Lending Fund manages approximately $33 billion in assets. It is a closed-end fund with quarterly redemption rights, allowing investors to redeem 5% of their shares if redemption requests reach 5%. If redemption requests exceed 5%, Cliffwater has the right to redeem up to 7% of the fund’s shares.

Sources said the company has not yet decided whether to limit the redemption to 5% or 7%. The fund’s redemption window will close on Tuesday.

Founded by Stephen Nesbitt, Cliffwater is the latest among the $1.8 trillion private credit market to face investor withdrawals due to concerns over loan quality and exposure to software companies potentially disrupted by artificial intelligence.

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