Cliffwater's $33 billion private credit fund to see over 7% redemptions, Bloomberg News reports

March 10 (Reuters) - Cliffwater LLC will likely face redemption requests in excess of 7% from its flagship private credit fund, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Cliffwater Corporate Lending Fund, with about $33 billion in assets under management, is an interval fund, and must pay back investors 5% quarterly if requests meet that level, the report added.

The firm hasn't yet decided whether to limit redemptions at the 5% or 7% mark, according to the report.

Reuters could not independently verify the report. A spokesperson for Cliffwater did not immediately respond to our request for comment.

Private credit has seen a wave of investor withdrawals this year as concerns mount over deteriorating credit quality, particularly in loans to software companies that may face disruption from artificial intelligence.

Some analysts say the fears are overblown, arguing that credit fundamentals remain stable, but investors have remained wary.