Cliffwater LLC, an investment advisory company, provides alternative investments consulting and advisory services. The company assists clients globally in their allocations to hedge funds, private equity, and real assets. It publishes long term return and risk forecasts for alternative and traditional asset classes, and provides clients a methodology and source for asset allocation studies. The company engages in sourcing top-tier hedge funds, performing due diligence, gaining access for clients, and providing ongoing risk management of hedge fund portfolios. It serves institutional investors, including endowments, foundations, retirement systems, and financial institutions.
Direct lending is receiving significant institutional interest due to its attractive potential return and moderate risk. Though illiquid, direct lending portfolios provide immediate cash flow with little or none of the J-curve effects associated with private equity. Cliffwater Direct Lending Index (“CDLI”) was introduced as a research tool to advance the study of direct lending as an asset class and as a benchmark to evaluate the performance of direct lending managers.
- Index Base Date: September 30, 2004
- Index Launch Date: September 30, 2015
- Data Universe: All underlying assets held by private and public BDCs that satisfy certain eligibility requirements
- Index Reporting Cycle: All index returns and characteristics are reported with a 2.5 month lag to allow sufficient time for release of SEC filings
- BDC Eligibility: SEC regulated as a BDC under the Investment Company Act of 1940; at least 75 percent of total assets represented by direct loans as of the calendar quarter-end
- Weighting: Asset-weighted by reported ‘fair value’.
- Rebalancing: As of calendar quarter-end
Key Features and Coverage on RIMES
For this data source, RIMES hosts the Cliffwater Direct Lending Index. Some of the data items available include:
- Annualized Return
- Cumulative Return
- Current Yield
- Gross Yield (on direct lending assets)
- Historical Returns
- Net Realized and Unrealized Gains
- Return to Risk
- Risk adjusted Return
- Total Return
- Yield to Maturity