Cliffwater warns investors private credit fund returns will be lower in Q1

NEW YORK, April 1 (Reuters) - Private asset manager Cliffwater told investors on Wednesday that first-quarter returns for some private credit funds were eroded by higher debt costs, as the industry grapples with questions over lending standards and valuations.

In a note emailed to investors and seen by Reuters, Cliffwater said it expected higher interest rates on new private loans in the near future. Some private credit funds are starting to report their quarterly performance.

A representative for Cliffwater declined to comment.