Cliffwater's flagship private credit fund has received redemption requests totaling 17% of its assets as investors seek to pull money from the $31 billion fund aimed at retail investors. The fund is now limiting withdrawals in response to the surge.

This move signals growing pressure on private credit funds amid rising investor concerns. The redemption requests represent a significant outflow from a major player in the sector, highlighting the challenges facing private credit vehicles that cater to retail investors.

The fund's decision to restrict withdrawals comes as retail investors increasingly seek liquidity in uncertain market conditions. This development underscores the strain on private credit funds that have expanded rapidly in recent years, with 17% redemption requests representing a notable vote of confidence loss.