Morgan Stanley is curbing redemptions at its nearly $7 billion private credit fund again in the third quarter, as investors requested more than twice the amount the fund was willing to repurchase.
The North Haven Private Income Fund capped withdrawals at 5% after investors asked to pull 11.4% of shares, largely unchanged from the three months prior, according to a shareholder letter Friday.
The fund said completed repurchases across three periods through September will total about $479 million. Nearly two-thirds of the requests came from investors whose previous withdrawal requests had been limited in the prior two repurchase offers, according to the letter.
While redemption requests at major funds have largely declined in the most recent quarter, they remain elevated as investors persist with efforts to pull cash from the $1.8 trillion market. That’s led Morgan Stanley to join many of its peers, including Blackstone Inc. and BlackRock Inc., in continuing to limit the amount of money investors can get out.
Managers are still working through a backlog of about $15 billion of withdrawal requests after a record rush for the exits in the past year, following concerns around underwriting standards and lenders’ exposure to vintage software investments.
A smaller Morgan Stanley fund with less than $1 billion in total investments also curbed redemptions after receiving requests to redeem around 7% of shares.
Written by: Olivia Fishlow @Bloomberg
The post “Morgan Stanley Caps Private Credit Exits Again as 11% Want Out” first appeared on Bloomberg