News
Interval Funds · Liquidity · Private Credit · Redemptions
The $31.5 billion Cliffwater Corporate Lending Fund (CCLFX), an interval fund known for rapid growth and 9.5% annualized returns, recently capped investor redemptions at 7% in Q1 2026, despite requests totaling 14% of shares.
This marks a record for the fund, leaving half of investors unable to exit. While CEO Stephen Nesbitt asserts strong performance and liquidity, the fund's ability to meet redemptions heavily relies on new capital inflows, with an expected $3 billion in Q1 covering the capped repurchases.
Cash on hand is only 2.58% of NAV. Although historical asset turnover could theoretically cover a 7% redemption, this rate is vulnerable to a tightening credit market.
Furthermore, the fund's borrowings increased 45% in six months, outpacing its 18.5% asset growth, raising concerns about effective leverage and potential regulatory limits if new money slows down.
Cliffwater Fund Caps Redemptions; Inflows Critical Now(current)