Morgan Stanley, Cliffwater LLC Limit Withdrawals from Multibillion-Dollar Private Credit Funds
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Morgan Stanley, Cliffwater Cap Withdrawals as Private Credit Funds Face Redemption Surge
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CNBC TV18•12-03-2026, 09:15
Morgan Stanley, Cliffwater Cap Withdrawals as Private Credit Funds Face Redemption Surge
•Morgan Stanley and Cliffwater LLC have capped withdrawals from their multibillion-dollar private credit funds.
•This action follows investor attempts to redeem significantly more than the funds permitted, signaling a surge in redemption demands.
•Cliffwater's $33 billion fund restricted redemptions to 7%, while Morgan Stanley's $8 billion fund returned less than half of demands, limiting to 5%.
•The moves highlight mounting worries about the quality of private credit loans, especially to software firms, and the market's capacity to handle a rush for exits.
•BlackRock Inc. also restricted withdrawals, and JPMorgan Chase & Co. is limiting lending to private credit funds due to lowered asset values.
