C liffwa te r wa s fo rm e d a s a lim ite d lia b ility c o m p a n y in D e la wa re o n Ju n e 14, 2004. C liffwa te r
p ro v id e s in v e s tm e n t a d v is o ry s e rv ic e s to a v a rie ty o f c lie n ts , in c lu d in g in s titu tio n s (s u c h a s
e n d o wm e n ts , fo u n d a tio n s , re tire m e n t s y s te m s , fin a n c ia l in s titu tio n s a n d p o o le d in v e s tm e n t
v e h ic le s ) a n d h ig h n e t wo rth in d iv id u a ls . C liffwa te r a s s is ts c lie n ts g lo b a lly in th e ir a llo c a tio n s to
a lte rn a tiv e in v e s tm e n ts , in c lu d in g p riv a te e q u ity , p riv a te d e b t, h e d g e fu n d s , re a l e s ta te , re a l
a s s e ts , a n d liq u id a lte rn a tiv e in v e s tm e n ts . C liffwa te r wo rk s with c lie n ts o n th e ir a lte rn a tiv e
in v e s tm e n t p o rtfo lio s in a n o n -d is c re tio n a ry o r d is c re tio n a ry c a p a c ity . C liffwa te r m a y a ls o
p ro v id e in v e s tm e n t a d v ic e fo r s o m e c lie n ts o n a b ro a d ra n g e o f tra d itio n a l s tra te g ie s , p rim a rily
in c o n n e c tio n with its a lte rn a tiv e in v e s tm e n t s e rv ic e s .
C liffwa te r a d v is e s c lie n ts o n th e s e le c tio n o f in v e s tm e n ts in c o m m in g le d fu n d s , in c lu d in g c o -
in v e s tm e n ts with th o s e v e h ic le s , a n d s e p a ra te a c c o u n ts th a t a re m a n a g e d b y o th e r in v e s tm e n t
m a n a g e rs . T h e s e v e h ic le s in tu rn in v e s t in a v a rie ty o f s e c u ritie s (in c lu d in g U .S . a n d n o n -U .S .
e q u ity , fix e d in c o m e , a n d d e riv a tiv e s ) a n d /o r o th e r in v e s tm e n ts . C liffwa te r a ls o a d v is e s c lie n ts
re g a rd in g o th e r ty p e s o f in v e s tm e n ts , in c lu d in g m id d le m a rk e t le n d in g , p riv a te e q u ity a n d re a l
a s s e ts in v e s tm e n ts .
C liffwa te r ta ilo rs its a d v is o ry s e rv ic e s to th e in d iv id u a l n e e d s o f its c lie n ts b a s e d o n e a c h c lie n t’s
s p e c ific c irc u m s ta n c e s a n d th e s e rv ic e s th e c lie n t d e s ire s . F o r e x a m p le , s o m e c lie n ts m a y s e le c t
C liffwa te r’s n o n -d is c re tio n a ry a d v is o ry s e rv ic e s , wh e re a s o th e r c lie n ts m a y c h o o s e
d is c re tio n a ry a d v is o ry s e rv ic e s . In a d d itio n , s o m e c lie n ts m a y re ta in C liffwa te r to p ro v id e
a d v is o ry s e rv ic e s fo r a ll o f th e ir a lte rn a tiv e in v e s tm e n ts , wh e re a s o th e r c lie n ts m a y re ta in
C liffwa te r fo r o n e a lte rn a tiv e a s s e t c a te g o ry (e .g ., p riv a te e q u ity fu n d s ). F in a lly , s o m e c lie n ts m a y
wa n t a fu ll ra n g e o f a d v is o ry s e rv ic e s in c lu d in g s tra te g y , e d u c a tio n a n d re s e a rc h , p o rtfo lio
c o n s tru c tio n , in v e s tm e n t re c o m m e n d a tio n s , a n d m o n ito rin g a n d re p o rtin g , wh e re a s o th e r
c lie n ts m a y wa n t a s u b s e t o f th e s e s e rv ic e s .
C liffwa te r is th e in v e s tm e n t a d v is e r to C liffwa te r C o rp o ra te L e n d in g F u n d (“C C L F ”), C liffwa te r
E n h a n c e d L e n d in g F u n d (“C E L F ”), a n d C a s c a d e P riv a te C re d it F u n d (“C P C F ”), a n d to g e th e r with
C C L F a n d C E L F , th e “C liffwa te r F u n d s ”. T h e C liffwa te r F u n d s a re a ll c lo s e d -e n d m a n a g e m e n t
in v e s tm e n t c o m p a n ie s s tru c tu re d a s a n in te rv a l fu n d s a n d re g is te re d u n d e r th e In v e s tm e n t
C o m p a n y A c t o f 1940, a s a m e n d e d (th e “In v e s tm e n t C o m p a n y A c t”).
C liffwa te r is in d ire c tly c o n tro lle d b y S te p h e n L . N e s b itt, C h ie f E x e c u tiv e O ffic e r, a n d in d ire c tly
m a jo rity -o wn e d b y M r. N e s b itt a n d c e rta in a c tiv e e m p lo y e e s . C e rta in e n titie s a s s o c ia te d with T A
A s s o c ia te s a ls o in d ire c tly o wn n o n -c o n tro llin g in te re s ts in C liffwa te r.
C liffwa te r p e rfo rm s its in v e s tm e n t a d v is o ry s e rv ic e s fo r m u ltip le c lie n ts a n d a c ts in a m a n n e r
c o n s is te n t with its fid u c ia ry o b lig a tio n to tre a t a ll c lie n ts in a fa ir a n d e q u ita b le m a n n e r wh e n
p ro v id in g in v e s tm e n t a d v ic e . A c tio n s ta k e n in th e p e rfo rm a n c e o f C liffwa te r’s in v e s tm e n t
a d v is o ry s e rv ic e s fo r o n e c lie n t m a y d iffe r fro m th e tim in g o r n a tu re o f a n a c tio n ta k e n fo r a n o th e r
c lie n t d e p e n d in g o n th e c lie n t’s in v e s tm e n t o b je c tiv e s a n d g u id e lin e s , le g a l s tru c tu re
re q u ire m e n ts , c u rre n t p o rtfo lio a n d liq u id ity n e e d s , re a d in e s s fo r in v e s tm e n t a n d tim in g o f
in v e s tm e n t o p p o rtu n itie s . T h e re fo re , in v e s tm e n t re s u lts m a y v a ry a m o n g c lie n ts .
Non-Discretionary Advisory Services
In n o n -d is c re tio n a ry a d v is o ry a s s ig n m e n ts , C liffwa te r s e e k s to h e lp c lie n ts im p le m e n t a n
in v e s tm e n t p o rtfo lio th a t m e e ts in d u s try b e s t p ra c tic e s , to p ro v id e c lie n ts with a c c e s s to to p -tie r
in v e s tm e n t o p p o rtu n itie s , a n d to g iv e c lie n ts th e in fo rm a tio n n e c e s s a ry to m a k e in fo rm e d
in v e s tm e n t d e c is io n s . W o rk m a y in c lu d e id e n tify in g p o te n tia l in v e s tm e n t o p p o rtu n itie s ,
p e rfo rm in g d u e d ilig e n c e o n in v e s tm e n t o p p o rtu n itie s , p ro v id in g a d v ic e re la tin g to a s s e t
P a g e 2 o f 14
a llo c a tio n a n d in v e s tm e n t s e le c tio n , g a in in g a c c e s s to in v e s tm e n t o
p p o rtu n itie s , a n d p ro v id in g
o n g o in g m o n ito rin g o f in v e s tm e n t p o rtfo lio s . C lie n t a s s ig n m e n ts a re p e rfo rm e d a c c o rd in g to a
d e fin e d s c o p e o f s e rv ic e s in c lie n t c o n tra c ts .
Discretionary Advisory Services
C liffwa te r m a n a g e s d is c re tio n a ry in v e s tm e n t p o rtfo lio s fo r wh ic h it s e e k s to s e le c t to p -tie r
in v e s tm e n t o p p o rtu n itie s a n d to p ro v id e in v e s tm e n t m a n a g e m e n t a n d a d m in is tra tiv e s e rv ic e s to
im p le m e n t th e d e s ire d in v e s tm e n t p o rtfo lio fo r th e c lie n t. W o rk m a y in c lu d e id e n tify in g p o te n tia l
in v e s tm e n t o p p o rtu n itie s , p e rfo rm in g d u e d ilig e n c e o n in v e s tm e n t o p p o rtu n itie s , p ro v id in g
a d v ic e re la tin g to a s s e t a llo c a tio n , s e le c tin g a p p ro p ria te in v e s tm e n ts , g a in in g a c c e s s to
in v e s tm e n t o p p o rtu n itie s , a n d p ro v id in g o n g o in g m o n ito rin g o f in v e s tm e n t p o rtfo lio s . C lie n t
a s s ig n m e n ts a re p e rfo rm e d a c c o rd in g to a d e fin e d s c o p e o f s e rv ic e s in c lie n t c o n tra c ts a n d
c lie n t-s p e c ific in v e s tm e n t g u id e lin e s . C liffwa te r d o e s n o t p a rtic ip a te in wra p fe e p ro g ra m s .
C liffwa te r c lie n t in v e s te d a s s e ts u n d e r a d v is e m e n t a s o f D e c e m b e r 31, 20231 a re a p p ro x im a te ly:
N o n -d is c re tio n a ry a d v is o ry s e rv ic e s2: $ 76,900,983,786
D is c re tio n a ry a d v is o ry s e rv ic e s3: $ 21,151,510,597
1 Includes assets of Cliffwater clients as of the date hereof. Some information regarding private assets under
advisement is provided as of September 30, 2023 because some year-end numbers are not available as of the date
of this brochure. All other information relating to assets under advisement is provided as of December 31, 2023.
2 Includes non-discretionary client invested assets where Cliffwater provides a variety of advisory services including
asset allocation, investment recommendations, and portfolio monitoring. For the avoidance of doubt, Cliffwater does
not consider such assets to be under management because Cliffwater does not have trading authority over these
assets, and therefore such assets are not included in regulatory assets under management in Cliffwater’s Form
ADV Part 1. Assets of clients for which Cliffwater is not responsible for ongoing reporting and monitoring are
excluded since information about their assets is not available to Cliffwater.
3 Includes discretionary client invested assets but excludes unfunded commitments which are included in regulatory
assets under management in Cliffwater’s Form ADV Part 1.
C liffwa te r m a y b e e n g a g e d b y c e rta in c lie n ts to c o n d u c t d u e d ilig e n c e o n s p e c ifie d in v e s tm e n t
o p p o rtu n itie s . In th e s e in s ta n c e s , C liffwa te r p ro v id e s in v e s tm e n t a n d /o r o p e ra tio n s d u e
d ilig e n c e re p o rts a n d , in c o n n e c tio n with th e s e s e rv ic e s , m a y p ro v id e a d d itio n a l p ro p rie ta ry a n d
to p ic a l re s e a rc h re p o rts .
C liffwa te r p u b lis h e s th re e in d ic e s , th e C liffwa te r B D C In d e x (th e “C W B D C ”), th e C liffwa te r D ire c t
L e n d in g In d e x (th e “C D L I”), th e C D L I: S e n io r- O n ly (th e “C D L I-S ”) a n d , th e C D L I V e n tu re O n ly
(th e “C D L I-V ”). T h e C W B D C m e a s u re s th e p e rfo rm a n c e o f le n d in g -o rie n te d , e x c h a n g e -tra d e d
b u s in e s s d e v e lo p m e n t c o m p a n ie s (“B D C s ”), s u b je c t to c e rta in e lig ib ility c rite ria re g a rd in g
p o rtfo lio c o m p o s itio n , m a rk e t c a p ita liz a tio n , a n d d iv id e n d h is to ry . T h e C W B D C is a
c a p ita liz a tio n -we ig h te d in d e x th a t is c a lc u la te d o n a d a ily b a s is u s in g p u b lic ly -a v a ila b le c lo s in g
s h a re p ric e s a n d re p o rte d d iv id e n d p a y o u ts . T h e C D L I s e e k s to m e a s u re th e u n le v e re d , g ro s s o f
fe e p e rfo rm a n c e o f U .S . m id d le m a rk e t c o rp o ra te lo a n s , a s re p re s e n te d b y th e a s s e t-we ig h te d
p e rfo rm a n c e o f th e u n d e rly in g a s s e ts o f B D C s , in c lu d in g b o th e x c h a n g e -tra d e d a n d u n lis te d
B D C s , s u b je c t to c e rta in e lig ib ility re q u ire m e n ts . T h e C D L I-S fo llo ws th e s a m e c o n s tru c tio n
m e th o d o lo g y a s C D L I b u t o n ly in c lu d e s lo a n s h e ld b y B D C s th a t h a v e a n in v e s tm e n t s ty le th a t
C liffwa te r h a s d e te rm in e d fo c u s e s o n s e n io r s e c u re d lo a n s . T h e C D L I-V fo llo ws th e s a m e
c o n s tru c tio n m e th o d o lo g y a s C D L I b y t o n ly in c lu d e s lo a n s h e ld b y B D C s th a t h a v e a n
in v e s tm e n t s ty le th a t C liffwa te r h a s d e te rm in e d fo c u s e s o n v e n tu re lo a n s . In c o n n e c tio n with th e
p u b lic a tio n o f th e s e in d ic e s , C liffwa te r o p e ra te s
www.B D C s .c o m a n d
www.C liffwa te rD ire c tL e n d in g In d e x .c o m. C liffwa te r a llo ws th ird p a rtie s to s u b s c rib e , fo r a fe e , to
th e d a ta th a t m a k e s u p th e C D L I. T h e in fo rm a tio n o n th e s e we b s ite s , in c lu d in g in fo rm a tio n
re g a rd in g th e in d ic e s , is in te n d e d fo r in fo rm a tio n a l p u rp o s e s o n ly a n d s h o u ld n o t b e c o n s tru e d
a s a n o ffe rin g o f a d v is o ry s e rv ic e s .
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