Morgan Stanley private credit fund redemptions remain elevated in third quarter
MS•Investor outflows ease as backlog is worked through
Wealthy investors have pulled money from non-traded private credit funds in recent months over concerns about lending standards and whether software companies, a key borrower base for direct lenders, can withstand disruption from artificial intelligence.
Redemption pressure, however, may be starting to ease as asset managers work through a backlog of unfulfilled withdrawal requests.
The fund said nearly two-thirds of repurchase requests for the latest quarter came from investors who were not allowed to fully cash out in the prior two repurchase offers.
"We believe the composition and stabilization of request activity may indicate the durability of the company’s investor base. Upon completion of this quarter’s repurchases, investors who sought full tender of their units during the prior two repurchase offers will have received more than 80% of their requested tendered amount," the fund said in an investor update.
The hit to PIF's net asset value is expected to be roughly $101 million after accounting for new subscriptions and dividend reinvestments.
Meanwhile, a smaller Morgan Stanley fund, North Haven Private Income Fund A (PIF A), logged about 6.8% in redemption requests, compared with 7.2% in the prior quarter.
Data from major private credit vehicles run by Apollo APO.N, Ares ARES.N and Blue Owl OWL.N is expected to be unveiled in the coming weeks.
Redemptions stay elevated in Morgan Stanley private credit fund
Sept. 18 (Reuters) - Withdrawal requests at a Morgan Stanley MS.N private credit fund remained elevated in the third-quarter repurchase offer, according to a regulatory filing on Friday, as the investment vehicle works through its redemption queue.
