Investors in Private Credit Funds Advised by Financial Advisors May Have Recovery Options: Contact KlaymanToskes for a Free, Confidential Consultation
April 3, 2026 / New York, NY / National investment loss and securities law firm KlaymanToskes is investigating potential claims on behalf of investors in the private credit market, including investors in private credit funds and other private credit-related investment products.
Investors who were recommended private credit investments by their financial advisor or brokerage firm, and who now have concerns regarding liquidity, valuation, suitability, or redemption restrictions, are encouraged to contact KlaymanToskes at (888) 997-9956 for a free and confidential consultation to discuss their legal rights and potential recovery options.
Several private credit vehicles have faced elevated redemption requests in recent months amid broader credit market uncertainty and concerns regarding the valuation and liquidity of private loans. Recent reports indicate that investors in the $33+ billion Cliffwater Corporate Lending Fund (CCLFX) sought to redeem nearly 14% of shares outstanding during the most recent quarterly redemption window. Under the fund’s structure, Cliffwater is generally required to repurchase at least 5% of shares per quarter, with discretion to increase repurchases to up to 7% when redemption requests exceed that level.
The fund reportedly repurchased 7% of shares outstanding, resulting in repurchases being conducted on a pro rata basis and leaving some investors unable to fully exit their positions. Reports have also indicated that Cliffwater, LLC explored selling portions of its private credit loan portfolio in the secondary market, including assets with a reported net asset value of approximately $1 billion, as part of efforts to manage liquidity within the fund.
KlaymanToskes is investigating whether financial advisors and brokerage firms conducted proper due diligence before recommending private credit investments and whether investors were adequately informed about the material risks, including liquidity restrictions, valuation uncertainty, limited redemption rights, and the potential for losses.
“Private credit has been marketed to many retail investors as a stable, yield-generating alternative to traditional fixed income,” said Lawrence L. Klayman, Esq. of KlaymanToskes. “However, the illiquid nature of these investments and the restrictions on redemptions can create significant challenges that may not have been fully disclosed or properly assessed for suitability.”
Investors who suffered losses in private credit funds recommended by their financial advisor or brokerage firm are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $600 million in Securities Litigation and FINRA Arbitration matters. KlaymanToskes has office locations in California, Florida, Nebraska, New York, and Puerto Rico.
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Contact
Lawrence L. Klayman, Esq.
KlaymanToskes, PLLC
+1 888-997-9956
investigations@klaymantoskes.com
