Cliffwater Corporate Lending Fund capped quarterly redemptions at 5% after investors asked to withdraw roughly 17% of shares from the $31 billion private credit fund.

The move means investors will receive only a partial exit. The Wall Street Journal reported that redemption requests rose from about 14% in the first quarter to roughly 17% in the second quarter, while Cliffwater lowered the repurchase cap from 7% to 5%.

The fund, which trades under the ticker CCLFX, is one of the largest retail focused private credit interval funds. Unlike traditional mutual funds or ETFs, interval funds provide liquidity through scheduled repurchase windows rather than daily redemptions.

In the first quarter, investors sought to redeem about 13.95% of the fund’s NAV, according to S&P Global Ratings. Cliffwater met redemptions up to 7% of NAV, above the 5% level it was required to offer.

This quarter, demand climbed to about 17%, but the fund limited repurchases to 5%. With NAV around $31.3 billion, that implies roughly $1.6 billion in shares will be repurchased.

In practical terms, investors who asked to exit will get only part of their money back. If redemption requests totaled 17% and the fund honors 5% on a pro rata basis, investors would receive less than 30 cents for every dollar they requested.

S&P revised its outlook on Cliffwater Corporate Lending Fund to negative from stable in March while affirming its A rating.

The ratings agency cited elevated redemption requests and liquidity pressure, while noting that the fund had close to 25% of its exposure in software companies. That sector has drawn more scrutiny as private credit investors assess risks from slower growth, defaults, and AI related disruption.

The Financial Times reported that Cliffwater limited withdrawals to preserve liquidity and avoid forced asset sales. That matters because private credit loans are not easy to sell quickly without discounts, especially if other funds are facing similar pressure.