News
Alternative Assets · Fund Withdrawals · Liquidity Risk · Private Credit
Morgan Stanley and Cliffwater capped withdrawals from their multibillion-dollar private credit funds after investors sought to redeem vastly more than the vehicles allow, following BlackRock's similar move last week, as reported by Bloomberg, highlighting growing concerns over loan quality, particularly in software companies.
These actions represent among the starkest examples yet of private credit funds grappling with a wave of redemption requests. While most funds initially aimed to meet investor demands for cash, the decision by BlackRock to limit withdrawals set a precedent that other managers, including Morgan Stanley and Cliffwater, have since followed.
The underlying concern driving these redemption requests is the perceived quality of the loans held by these funds, with a specific focus on exposures to software companies.
Morgan Stanley, Cliffwater Cap Private Credit Fund Withdrawals(current)
