Overview
Cliffwater LLC is an alternatives-focused investment advisory firm based in Marina del Rey, California. The firm manages and advises on approximately $15 billion in alternative investment assets, with a client base that includes some of the largest institutional investors in the United States.
Cliffwater’s exclusive focus on alternative investments distinguishes it from generalist investment consultants. The firm provides research, due diligence, and portfolio construction services across private equity, private credit, hedge funds, and real estate. This specialization enables deeper manager coverage and more nuanced evaluation of alternative investment strategies than generalist consulting firms typically provide.
In addition to its advisory business, Cliffwater manages direct investment vehicles, most notably in the private credit space. The Cliffwater Corporate Lending Fund is one of the largest interval funds focused on private credit. This dual-platform approach gives the firm both advisory influence and direct asset management capabilities.
How to Approach
GPs should approach Cliffwater through its alternatives research team, which evaluates managers across private equity, credit, and hedge fund strategies. Cliffwater’s recommendations carry significant weight with its institutional client base, which includes some of the largest capital allocators in the US.
The firm’s due diligence process is thorough and research-driven, with an emphasis on quantitative performance analysis, strategy evaluation, and operational assessment. GPs should be prepared to provide detailed track record data and to engage in substantive discussions about their investment process and competitive advantages. A positive evaluation from Cliffwater can open doors to multiple large institutional investors simultaneously.
Frequently Asked Questions
What is Cliffwater's primary focus?
Cliffwater focuses exclusively on alternative investments, providing research, due diligence, and portfolio construction services across private equity, private credit, hedge funds, and real estate. Unlike generalist investment consultants that cover both traditional and alternative assets, Cliffwater's exclusive alternatives focus allows for deeper expertise and more extensive manager coverage in each alternative asset class.
Does Cliffwater manage capital directly?
Yes. Cliffwater operates both an advisory business and direct investment management business. The firm manages the Cliffwater Corporate Lending Fund and other vehicles that invest directly in private credit and alternative strategies. This combination of advisory and investment management gives Cliffwater both gatekeeper influence and direct capital allocation capabilities.
What types of institutional investors does Cliffwater work with?
Cliffwater works with large institutional investors including public pension funds, sovereign wealth funds, endowments, and foundations. The firm's client base includes several of the largest US public pension systems. Cliffwater's engagements range from full alternatives program advisory to specific manager due diligence assignments.
