Episode summary
Private Credit Storm Lashes Father-Son Duo at Helm of Cliffwater | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 35 min · Hosts: Carol Massar, Tim Stenovec · Guests: Ellen DiMauro, Olivia Fishlow, Ray Takeyh, Wilbur Ross, Emily Green
Summary
The episode opens with Bloomberg’s Big Take on Cliffwater, the father-and-son private credit firm that grew rapidly by buying slices of loans originated by other managers rather than making the loans itself. Reporters said that model helped Cliffwater become a hyperdiversified, $33 billion giant, but it also left the firm exposed when investors began rushing to redeem money from private credit funds. The central concern is not only loan losses, but a feedback loop in which redemptions force sales, markdowns, and more redemptions.
The discussion argued that the pressure is being driven by broader private-credit anxiety, especially around software exposure, which the reporters said is the single largest sector in the asset class at about 20%. They said Cliffwater is drawing attention because of its scale and its unusual “fund of private credit funds” structure, which ties it to more than 50 direct lenders and many of the industry’s biggest names. The reporters said Cliffwater still has liquidity to handle elevated withdrawals for at least a year, but they are watching redemption levels and liquidity closely.
The rest of the program shifted to the war in Iran and what it could mean for markets, energy, and geopolitics. One guest argued the conflict may eventually produce a weaker but more militant Iran, while another said the U.S. is signaling strength that could deter future conflicts. The show later touched on OpenAI’s push to refocus on business and coding tools, and on how AI and higher rates are shaping investor strategy.
Key takeaways
- Cliffwater’s $33 billion Corporate Lending Fund is under scrutiny because its fund-of-funds structure links it to more than 50 direct lenders and many underlying loans.
- The reporters said software is about 20% of private credit exposure, making the sector a major source of investor nerves.
- The episode said Cliffwater can handle max redemptions for at least a year without extreme asset sales, but elevated withdrawals remain the key risk.
- One reporter argued the current stress reflects broader private-credit contagion rather than a single-firm problem.
- A later segment said the Iran conflict could leave the Islamic Republic weaker in capability but more militant in doctrine.
- Another guest said investors should expect AI, geopolitics, and higher rates to keep favoring long-term diversification over fast trading calls.
Notable quotes
“It worked out for a while and it made uh the founders incredibly wealthy”
“What they do is essentially partner with other direct lenders and take a slice of each of those loans”
“we saw record redemptions um from the fund this quarter”
“software is the single largest sector exposure in private credit. It's about 20%”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news.
This is Bloomberg Business Week Daily, reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenc on Bloomberg Radio.
Let's get to the Father and Son team who rode Private Credit on the way up and who risk falling hard on the way down. It's an exclusive. It's Bloomberg's Big Take today.
You can read the story and more from Bloomberg The Big Take on the Bloomberg Terminal and at Bloomberg.com/bigtake.
Yeah, it's a great story. Two reporters among the team reporting it out. Bloomberg News leverage finance reporter Ellen Demorro and Olivia Fishlo.
They are both here in studio. It is a great story as we continue to kind of track the concerns uh when it comes to private credit and I want to start with you Ellen. Talk to us about Cliff Water, who they are, what's been their approach and why we're talking about them, why you guys did a deep dive.
Yeah. Um so Cliffwater is a sort of pioneer in private credit really. They started out as a consultant to allocators like pension funds.
Um, and then they created their own asset management business which has grown exponentially over the last 10 or so years. What they do is essentially partner with other direct lenders and take a slice of each of those loans and that's allowed them to grow very quickly and become hyperdiversified compared to other platforms that are just single manager.
It worked out for a while and it made uh the founders incredibly wealthy. Uh Olivia, come on in here because then redemptions started.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- private credit
- interval funds
- liquidity and redemptions
- cliffwater corporate lending fund
- leveraged finance
Companies and tickers mentioned
- Cliffwater LLC
- Cliffwater Corporate Lending Fund
- Ellevest
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
