Alternative asset manager TPG and Temasek, a Singaporean state-owned investment firm, announced an agreement to make a “substantial” minority investment in Cliffwater LLC, a major operator of interval funds.
TPG’s investment will be made through TPG Growth, its growth equity platform. TPG and Temasek join TPG and Temasek join existing investor TA Associates, a 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 now operates three private credit and private equity interval funds, including the Cliffwater Corporate Lending Fund (CCLFX), which has almost $28 billion in assets making it the single largest fund of its type. It also operates the Cliffwater Enhanced Lending Fund (CELFX) with $5.3 billion in assets and the recently launched the Cascade Private Capital Fund (CPEFX), which offers access to a broad range of private equity strategies and has $2.6 billion in assets. Cliffwater also provides advisory and consulting services to support asset allocation, portfolio construction, manager selection and portfolio monitoring.
Interval funds continue to emerge as a popular option for retail investors and financial advisors to tap private markets. According to consulting firm XA Investments, which tracks the industry, there were 257 total funds (124 interval funds and 133 tender offer funds) with a combined $172 billion in assets at the end of 2024, with about 60% of assets in interval funds. In addition, about 50 new funds in those two wrappers were in the pipeline at the start of 2025. (The firm also recently launched the XAI Interval Fund Index (INTVL) to track the total returns of a basket of 77 existing funds with a combined $103 billion in total net assets. It has a January 2023 base date with two years of historical performance.)
“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,” Cliffwater CEO Stephen Nesbitt said in a statement. “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.”
For TPG, it represents another step toward the private wealth market. Last year, the firm had announced it was working to launch its first semiliquid private equity fund in 2025. The product will include climate themes, similar to strategies in its TPG Rise Climate impact investing franchise.
“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,” TPG Partner Peter McGoohan said in a statement. “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.”
“Since our investment in 2023, Cliffwater has consistently outperformed expectations, delivering meaningful growth and deepening its relationships in the high-net-worth channel,” TA Managing Director Todd Crockett said in a statement. “With its clear vision, innovative approach and strong leadership, the Firm has positioned itself at the forefront of a market still in the early innings of expansion. It has been a privilege to support Cliffwater through this transformational period, and we are proud to continue the journey alongside TPG, Temasek and Cliffwater’s exceptional leadership team.”
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.