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Morgan Stanley

Morgan Stanley Direct Lending Fund Reports Second Quarter Financial Results

Strategic Insights

— 2 min read

Morgan Stanley Direct Lending Fund (MSDL), a non-diversified specialty finance company, announced its financial results for the second quarter ended June 30, 2025. The company reported a decrease in total investment income to $99.5 million, compared to $101.5 million for the quarter ended March 31, 2025. This decrease was primarily driven by lower base rates and lower repayment related income as compared to the prior period.

Key Takeaways:

  • Total investment income for the quarter ended June 30, 2025 was $99.5 million, a decrease of $2 million from the quarter ended March 31, 2025.
  • Net expenses for the quarter ended June 30, 2025 were $55.9 million, an increase of $0.7 million from the quarter ended March 31, 2025.
  • Net investment income for the quarter ended June 30, 2025 was $43.7 million, or $0.50 per share, compared to $46.2 million, or $0.52 per share, for the quarter ended March 31, 2025.
  • The company's investment portfolio had a fair value of approximately $3.8 billion as of June 30, 2025, with an average investment size of $17.7 million.
  • The composition of the company's investments was 34% in healthcare, 23% in technology, and 15% in financial services.
  • The company had total principal debt outstanding of $2.0542 billion as of June 30, 2025, with a combined weighted average interest rate of 6.02%.
  • The company had $1.1130 million of availability under its credit facilities and $75.8 million in unrestricted cash and short-term liquid investments as of June 30, 2025.
  • The company authorized an amended and restated share repurchase program with a maximum size of $100 million on February 27, 2025.
  • The company entered into equity distribution agreements on March 28, 2025, with an aggregate offering price of up to $300 million.

Statistics:

  • Total investments at fair value: $3,785,496
  • Cash and cash equivalents: $52,216
  • Investments in unaffiliated money market funds: $27,410
  • Net expense ratio: 1.45%
  • Net investment income ratio: 4.53%
  • Net asset value per share: $20.59
  • Total debt: $2.0542 billion
  • Combined weighted average interest rate on debt outstanding: 6.02%
  • Total principal debt outstanding: $2.0542 billion
  • Availability under credit facilities: $1.1130 million
  • Unrestricted cash and short-term liquid investments: $75.8 million

Sources:

  • Morgan Stanley Direct Lending Fund (MSDL) press release dated August 7, 2025
  • Morgan Stanley Direct Lending Fund (MSDL) Form 8-K dated August 7, 2025
  • Morgan Stanley Direct Lending Fund (MSDL) financial statements for the second quarter ended June 30, 2025.

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