Morgan Stanley Direct Lending Fund Q3 net investment income per share rises
MSDL•Morgan Stanley Direct Lending Fund’s Q3 net investment income per share rose to $0.48 from $0.45. It declared a regular dividend of $0.45 per share and a supplemental dividend of $0.015 per share, and plans to reduce management and incentive fees beginning in January 2027.
1. Income and expenses
The company said total investment income declined because of positions placed on non-accrual and lower non-recurring revenue. Net expenses fell primarily due to lower incentive fees earned, partially offset by higher interest and other financing expenses.
2. Losses and dividends
The company reported $38.2 million in realized losses and $29.4 million in unrealized depreciation. It declared a regular dividend of $0.45 per share and a supplemental dividend of $0.015 per share; the supplemental dividend will equal 50% of excess net investment income per share above the regular dividend.
3. Fee changes
Beginning in January 2027, the company plans to reduce its base management fee to 0.75% and its incentive fee to 15%.
