Cliffwater Enhanced Lending Fund (CELFX) has recently achieved a significant milestone with the closing of a new credit facility, marking a key development in its investment strategy. This agreement allows CELFX to access up to $1.175 billion in borrowed funds, with an option to extend this amount further if needed. This strategic move is set to enhance the fund’s ability to grow and manage its assets effectively. As of mid-2024, CELFX has demonstrated impressive growth and continues to focus on delivering strong returns for its investors. This new facility, led by PNC Bank and Barings, is a testament to CELFX’s commitment to maintaining financial flexibility and supporting its ongoing expansion.
Here’s a detailed explanation with key points:
- New Credit Agreement:
- CELFX has secured a new credit facility allowing it to borrow up to $1.175 billion.
- The facility includes an option to increase the total borrowing capacity to $2 billion.
- The agreement will remain in effect until July 19, 2029.
- PNC Bank is leading the deal, with Barings also playing a significant role.
- Purpose of the Credit Facility:
- The borrowed funds will support CELFX’s continued growth and asset management.
- As of June 30, 2024, CELFX’s net assets have grown to approximately $3.4 billion from $2.5 billion at the end of 2023.
- Statements from CELFX Management:
- Stephen Nesbitt (Portfolio Manager): Expressed enthusiasm about the new facility, highlighting its role in enhancing the fund’s financial flexibility and long-term investor value.
- Daniel Lepore (Managing Director): Emphasized the immediate benefits of the facility, including strong liquidity and a pathway for future growth, and thanked the lenders for their support.
- Legal Note:
- The announcement does not constitute an offer to sell or buy any securities and is not applicable in jurisdictions where such offers are illegal.
- About CELFX:
- Launch Date: July 1, 2021.
- Type: Interval fund registered under U.S. law.
- Investment Focus: Invests in private loans and specialized financial strategies for high income and capital growth.
- Performance: As of mid-2024, CELFX has a net asset value of $3.4 billion and has delivered a strong annualized return of 13.16% since inception.
- Management: Managed by Cliffwater LLC.
In summary, Cliffwater Enhanced Lending Fund (CELFX) has secured a new credit facility, allowing it to borrow up to $1.175 billion, with an option to increase to $2 billion. This facility, led by PNC Bank and Barings, is effective until July 19, 2029, and aims to enhance CELFX’s asset management and expansion capabilities. By mid-2024, the fund’s net assets grew to $3.4 billion from $2.5 billion at the end of 2023, demonstrating strong performance and investor confidence. Fund managers Stephen Nesbitt and Daniel Lepore are optimistic about this facility, emphasizing its role in maintaining financial flexibility and supporting growth. This move underscores CELFX’s commitment to delivering high returns and effective investment solutions.
About Cliffwater LLC
- Cliffwater LLC is an independent alternative investment adviser and fund manager.
- Founded in 2004, with offices in Los Angeles, Chicago, New York, and Newport Beach.
- Manages approximately $28 billion in assets and advises on around $83 billion
Specialization:
- Renowned leader in private debt.
- Research featured in “The Journal of Alternative Investments.”
Leadership:
- Stephen Nesbitt, Founder and CEO, recognized as one of the “30 Most Influential People in Private Debt” by Private Debt Investor in 2018.
- Author of “Private Debt: Opportunities in Corporate Direct Lending” (Wiley Finance, 2019) and its second edition, “Private Debt: Yield, Safety and the Emergence of Alternative Lending” (Wiley Finance, 2023).
Research and Indices:
- Developed four key indices:
- Cliffwater Direct Lending Index (CDLI): Measures unlevered, gross of fees performance for U.S. middle market corporate loans.
- Cliffwater Direct Lending Index: Senior-Only (CDLI-S): Focuses on senior loans within the CDLI.
- Cliffwater Direct Lending Index: Venture-Only (CDLI-V): Includes only venture-backed loans within the CDLI.
- Cliffwater BDC Index (CWBDC): Tracks performance of exchange-traded Business Development Companies (BDCs).
Regulatory Status:
- Registered investment adviser with the Securities and Exchange Commission (SEC).
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