Morgan Stanley Limits Withdrawals on $8B Private Income Fund After $169M Requests
Morgan Stanley limited withdrawals from its $8 billion North Haven Private Income Fund by returning roughly $169 million of investor tender requests after reaching its 5% quarterly redemption cap. The firm said capping redemptions will prevent forced asset sales during market dislocations and help preserve long-term risk-adjusted returns.
1. Redemption Cap on North Haven Fund
Morgan Stanley limited withdrawals from the $8 billion North Haven Private Income Fund by imposing a 5% quarterly redemption cap after returning about $169 million of investor tender requests.
2. Rationale for Withdrawal Limits
Management cited the need to avoid forced asset sales during market dislocations and to preserve long-term risk-adjusted returns for investors.
3. Industry-Wide Private Credit Stress
Similar funds at Cliffwater, BlackRock, Blackstone and JPMorgan also faced elevated redemption requests and loan markdowns, underscoring private credit liquidity strains.
4. Stock Market Reaction
Morgan Stanley shares fell over 4% intraday as investor concerns spread to financial and alternative asset manager stocks.