TPG (NASDAQ: TPG), a global alternative asset management firm, and Temasek, a global investment company headquartered in Singapore, announced a definitive agreement to make a “substantial minority investment in Cliffwater LLC, an independent alternative investment adviser and fund manager.”
TPG’s investment will be made “through TPG Growth, its growth equity platform.”
TPG and Temasek join existing investor TA Associates, a global private equity firm “that first invested in Cliffwater in 2023.”
Following the transaction, Cliffwater’s management team “will retain majority control of the Firm and continue to lead the business.”
Terms of the transaction were “not disclosed.”
Founded in 2004 as an alternatives focused advisory firm, Cliffwater has expanded into a market participant focused on “providing private markets funds to wealth management investors.”
The firm manages a suite of “private credit and private equity interval funds, including the Cliffwater Corporate Lending Fund (CCLFX), the Cliffwater Enhanced Lending Fund (CELFX) and the recently launched Cascade Private Capital Fund (CPEFX), which offers access to a broad range of private equity strategies.”
Cliffwater also provides advisory and consulting services to “support asset allocation, portfolio construction, manager selection and portfolio monitoring.”
Stephen Nesbitt, Founder and Chief Executive Officer of Cliffwater
“The continued support of TA and new investment from TPG and Temasek mark an exciting milestone in Cliffwater’s journey as a fund manager and allocator. Their partnership reflects the strength of our platform and ability to deliver innovative, differentiated solutions to our institutional, high-net-worth and retail investors. We’re excited to continue expanding our reach and delivering value for our clients and investors.”
Cliffwater has seen momentum in recent years, with “approximately $36 billion in assets under management (AUM) and $80 billion in assets under advisement (AUA) currently.”
The firm’s flagship fund, the Cliffwater Corporate Lending Fund (CCLFX), is the “largest private credit interval fund in the U.S., managing $27.9 billion in net assets as of March 31, 2025.”
Peter McGoohan, Partner at TPG said:
“Individual investors continue to seek exposure to private markets as a way to diversify their portfolios and access some of the most dynamic corners of the economy. Cliffwater is an early mover, trusted partner, and proven innovator, with one of the longest and strongest track records in the fast-growing retail segment. The Firm is exceptionally well positioned for the opportunity ahead, and we’re excited to partner with the Cliffwater team, TA and Temasek to support and grow the platform.”
The transaction is expected to close in “the second quarter of 2025, subject to customary closing conditions.”
Moelis & Company LLC acted “as exclusive financial advisor to Cliffwater, and Kirkland & Ellis LLP provided legal counsel.”
J.P. Morgan Securities LLC and Ardea Partners LP acted “as financial advisors to TPG, and Davis Polk provided legal counsel. Goodwin Proctor LLP provided legal counsel to TA.”