Cliffwater

In this edition of “Views from Cliffwater,” we look at how private debt weathered previous periods of market stress, why direct lending continues to be preferred by borrowers compared to public financing options, and protections that can be found in private debt transactions. #privatedebt #alternatives #privatemarkets

Fee compression still appears far away for most investors in private debt--our survey of 68 firms managing over $1.3 trillion in direct lending assets found that there has been no year-over-year fee compression. The exceptions are the largest institutional investors and vehicles that can access fee-free or low fee co-investments on a broad scale. View Cliffwater’s updated study to see how components of fees and expenses in private debt funds compare to prior years’ levels.?#privatedebt #directlending

Asset allocators have updated their 10-year return and risk assumptions for 2025, with private debt and private equity continuing to be favored. See how expectations compare to that of other major asset classes. #assetallocation #privatedebt #privateequity

We are proud to be recognized by Private Debt Investor as LP/Investor of the Year, Americas for the second consecutive year. We look forward to continuing to evolve how our partners and investors access private markets. #privatedebt #PDI

Payment-in-kind (PIK) income has become a lightning rod of debate in direct lending. It is important to remember that not all PIK income is created equal. While it can offer borrowers flexibility and potentially enhance lender returns, it may also introduce additional credit risk and uncertainty in cash flow realization. In “PIK and Choose: The Pros and Cons of Deferred Income in Direct Lending,” we dissect the advantages and drawbacks of PIK to better understand its implications for direct lending portfolios. #privatedebt #directlending

Stephen Nesbitt, CEO & CIO, shares his asset allocation update for Q1 2025 with a focus on the valuation of US stocks relative to global stocks. #assetallocation

Stephen Nesbitt, CEO & CIO, Caitlin (Kammerait) Nemeth, Managing Director, and Samir Patel, Managing Director, share their outlook for private debt in 2025 and discuss trends to watch for in the upcoming year. #privatedebt #alternatives

“Direct Lending’s Wall of Worry” explores the gap between perception and reality in direct lending, demonstrating how disciplined underwriting and resilient performance stand in stark contrast?to sensationalized press headlines. Read now. #privatedebt

Stephen Nesbitt, CEO, and Fran Beyers, Head of Capital Markets, provide an update on the private debt market, detail two new subindices focused on lower middle market and upper middle market lending, and share their outlook for 2025 in the Cliffwater Direct Lending (CDLI) Q3 2024 Update. #privatedebt #alternatives

We are pleased to announce that Blake Nesbitt, Senior Managing Director and Co-Head of Asset Management, has been selected as one of Private Debt Investor's Rising Stars of Private Debt. Blake has been instrumental in growing Cliffwater’s leading interval fund platform and expanding our private credit team to over 40 investment professionals. Congratulations, Blake! #privatedebt?