Morgan Stanley’s private credit fund continued to witness elevated withdrawal requests in the third-quarter repurchase offer, stated a regulatory filing from the Wall Street giant, as the venture’s investment vehicle tries to address the high redemption queue from the investors.
Investors in Morgan Stanley’s North Haven Private Income Fund (PIF) sought to withdraw 11.4% of shares in the latest tender offer, a slight dip from the 11.6% in the prior quarter.
“The fund will repurchase 5% of shares, the customary threshold for such vehicles,” the filing stated further.
However, Morgan Stanley is not witnessing the phenomenon alone, as wealthy investors in general have pulled money from non-traded private credit funds in recent months over concerns regarding lending standards and whether software companies, a key borrower base for direct lenders, can withstand disruption from the AI.
Other industry giants like Apollo, Ares, and Blue Owl have also felt the pain and are likely to release similar data in the coming weeks.
Redemption pressure, however, may be starting to ease as asset managers work through a backlog of unfulfilled withdrawal requests.
As per the fund’s filing, nearly two-th...