Credit Funds Cap Payouts as Redemption Surge Hits Private Markets

Cliffwater has capped payouts at its credit fund as redemption requests surge, joining Morgan Stanley's private loan fund in limiting investor withdrawals. The moves come as investors increasingly seek to exit private credit positions amid changing market conditions.

Private credit markets have experienced unprecedented growth in recent years, with funds raising hundreds of billions in capital. However, the typically illiquid nature of these investments means funds can struggle when multiple investors simultaneously request their money back.