Investors are pulling out of big funds on Wall Street, causing firms to make tough decisions about their future profits. One fund, managed by Cliffwater, recently told clients that 14% of investors want to cash out this quarter. The $33 billion fund will pay out half of the requests, leaving the remaining amount locked up for at least another quarter.
This trend is forcing funds to re-evaluate their strategies and potentially affect their ability to grow in the future. As investors become increasingly risk-averse, it’s becoming more challenging for private-credit engines like Cliffwater to sustain massive growth on Wall Street.
Source: https://www.wsj.com/finance/investing/an-exodus-of-money-endangers-wall-streets-private-credit-craze-d0fbb8af