Cliffwater's corporate lending interval fund is restricting redemptions after investors sought to cash out nearly 14% of shares outstanding this quarter, up sharply from 5.3% in the previous period. The Marina del Rey-based asset manager plans to cover only about half of the repurchase requests, maintaining its normal practice for closed-end funds.

This move reflects growing pressure in private credit markets as investors seek liquidity. The 7% share reduction represents a significant shift in investor sentiment, with redemption requests more than doubling compared to the prior quarter. Cliffwater's decision to limit redemptions follows a pattern seen across private credit vehicles facing heightened withdrawal demands.

The asset manager notified shareholders of the redemption limitations in a letter reviewed by WSJ Pro. This approach allows Cliffwater to maintain portfolio stability while managing investor outflows during a period of market uncertainty.