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Morgan Stanley

Morgan Stanley Direct Lending Fund Reports Second Quarter Financial Results

Strategic Insights

— 1 min read

Morgan Stanley Direct Lending Fund, a business development company externally managed by MS Capital Partners Adviser Inc., announced its financial results for the second quarter ended June 30, 2025. The Company's financial performance was generally in line with expectations, despite a decrease in net investment income due to lower base rates and repayment-related income. The Company's investment portfolio had a fair value of approximately $3.8 billion as of June 30, 2025, comprising 214 portfolio companies across 34 industries.

Key Takeaways:

  • The Company reported net investment income of $43.7 million, or $0.50 per share, for the quarter ended June 30, 2025, a decrease from the quarter ended March 31, 2025, primarily due to lower base rates and repayment-related income.
  • The Company's investment portfolio had a fair value of approximately $3.8 billion as of June 30, 2025, comprising 214 portfolio companies across 34 industries.
  • The composition of the Company's investments was 96.4% First Lien Debt, 1.9% Second Lien Debt, 0.3% Other Debt Investments, and 1.4% Equity as of June 30, 2025.
  • The Company repurchased 1,057,127 shares at an average price of $18.92 per share during the three months ended June 30, 2025.
  • The Company successfully priced its inaugural CLO with approximately $400 million of aggregate principal amount and an efficient cost of funding on August 6, 2025.

Statistics:

  • Net investment income per share: $0.50 (Q2 2025) vs. $0.52 (Q1 2025)
  • Net asset value per share: $20.59 (JUNE 30, 2025) vs. $20.65 (MARCH 31, 2025)
  • Debt to equity ratio: 1.15x (JUNE 30, 2025) vs. 1.11x (MARCH 31, 2025)
  • Fair value of investment portfolio: $3.8 billion (JUNE 30, 2025) vs. $3.7 billion (MARCH 31, 2025)
  • New investment commitments: $149.1 million (Q2 2025) vs. $233.4 million (Q1 2025)
  • Investment fundings: $204.0 million (Q2 2025) vs. $205.6 million (Q1 2025)
  • Number of new investment commitments: 9 (Q2 2025) vs. 9 (Q1 2025)
  • Total weighted average yield of investments: 10.1% (JUNE 30, 2025) vs. 10.2% (MARCH 31, 2025)

Sources:

  • Morgan Stanley Direct Lending Fund (NYSE: MSDL)
  • MS Capital Partners Adviser Inc.
  • BNP (Bank of New York Mellon)
  • Truist (formerly BB&T)
  • Bloomberg Finance L.P.

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