Temasek and TPG to Acquire Minority Stake in Cliffwater

TPG, a leading global alternative asset management firm BASED IN San Francisco, and Temasek, a global investment company headquartered in Singapore, have decided to make a 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 (TA), a leading 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.

The terms of the transaction, which is expected to close in the second quarter of 2025, subject to customary closing conditions, was not disclosed.

Founded in 2004 as an alternatives focused advisory firm, Cliffwater has expanded into a market leader in providing private markets funds to wealth management investors.

The firm manages a suite of innovative 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.

Cliffwater’s founder and CEO Stephen Nesbitt said that the continued support of TA and new investment from TPG and Temasek mark an exciting milestone in their 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,” Nesbitt said.

Investors seeking Diversified Portfolios

Cliffwater has seen strong 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 CCLFX is the largest private credit interval fund in the US, managing $27.9 billion in net assets as of 31 March 2025.

Peter McGoohan, Partner at TPG said that individual investors continued 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 are excited to partner with the Cliffwater team, TA and Temasek to support and grow the platform,” McGoohan added.

TA’s Managing Director Todd Crockett said that since their investment in Cliffwater in 2023, the latter has consistently outperformed expectations, delivering meaningful growth and deepening its relationships in the high-net-worth channel.

He added: “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.”