Morgan Stanley has again capped investor withdrawals from its $7bn flagship private credit vehicle after redemption requests exceeded the fund’s quarterly limit, according to a report by Reuters citing a regulatory filing.
North Haven Private Income Fund (PIF) said it would fulfil 43% of second-quarter redemption requests after investors sought to redeem 11.6% of outstanding units. Around half of requests reportedly came from investors who had been unable to fully exit during the previous quarter, when redemption demand reached 10.9%.
In a letter to investors, Morgan Stanley Investment Management said the composition of requests and signs of stabilisation versus the first quarter may indicate resilience in its investor base. As of 31 May, PIF was invested across 301 borrowers spanning 45 industries, with software accounting for 22.7% of exposure.
After accounting for subscriptions and dividend reinvestment, PIF said the net impact on net asset value was approximately $102m, equivalent to 3.2% of its 31 March NAV. A smaller affiliated vehicle, North Haven Private Income Fund A, received redemption requests equivalent to 7.2% of assets and will meet requests up to its standard 5% threshold.
