TPG and Temasek have reached a definitive agreement to acquire a minority stake in Cliffwater, an independent adviser and fund manager specialising in alternative investments.
Financial details regarding the transaction were not made public.
TPG’s investment will be facilitated through TPG Growth, the firm’s growth equity platform.
This move sees TPG and Temasek joining existing investor TA Associates, a private equity firm that made its initial investment in Cliffwater earlier this year.
Cliffwater’s management team will retain majority control of the firm and continue to manage its operations.
TPG partner Peter McGoohan 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.”
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By GlobalDataFounded in 2004, Cliffwater has evolved from an advisory firm to a provider of private market funds for wealth management clients.
The firm manages a variety of private credit and private equity interval funds, including the Cliffwater Corporate Lending Fund (CCLFX), the Cliffwater Enhanced Lending Fund (CELFX), and the newly launched Cascade Private Capital Fund (CPEFX).
Additionally, Cliffwater provides advisory services for asset allocation, portfolio construction, manager selection, and portfolio monitoring.
Cliffwater currently has around $36bn in assets under management (AUM) and $80bn in assets under advisement (AUA). CCLFX reported $27.9bn in net assets as of 31 March 2025.
Cliffwater founder and CEO Stephen Nesbitt said: “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.”
The transaction is slated for completion in the second quarter of 2025, contingent on standard closing conditions.
Moelis & Company was the exclusive financial advisor to Cliffwater, while Kirkland & Ellis offered legal support.
J.P. Morgan Securities and Ardea Partners were financial advisors to TPG, with Davis Polk offering legal counsel. TA Associates was represented by Goodwin Proctor.
In December 2024, Temasek launched a new private credit platform to expand its credit and hybrid solutions portfolio and leverage global private credit opportunities.
