Investors are fleeing this $__ billion fund as it limits ________ for shareholders. They also believe its net asset value is _____ and the fund is too _____

• A. Cliffwater Corporate Lending Fund, 21, redemptions, inflated, opaque
• B. Cliffwater Corporate Lending Fund, 30, redemptions, inflated, opaque
• C. Cliffwater Corporate Lending Fund, 42, redemptions, inflated, transparent
• D. Cliffwater Corporate Lending Fund, 42, redemptions, inflated, opaque

Answer: (D)

Liquidity, valuation, and transparency shape how investors react to what a fund can or cannot do. When a fund limits redemptions, investors lose the ability to access cash quickly, which makes the fund feel riskier and pushes them to exit. If the NAV is believed to be inflated, that signals that the assets are marked up beyond what they could fetch in a real sale, magnifying concern about the fund’s true value. Add opacity—when information isn’t clear or readily verifiable—then investors have even less confidence in what they’re holding, amplifying outflows.

The best fit describes a large fund—about $42 billion—that imposes redemption limits, is thought to have an inflated NAV, and is viewed as opaque. The combination aligns with why investors would flee: restricted liquidity, questionable valuations, and poor transparency.