Morgan Stanley Direct Lending Fund reported its financial results for the quarter ending June 30, 2025, revealing a total investment income of $99.5 million, a decrease from $104.2 million in the same period last year. For the six months ending June 30, 2025, total investment income was $201.0 million, down from $203.3 million in the prior year. The fund's net investment income after taxes for the quarter was $43.7 million, compared to $56.1 million in the previous year, while for the six months, it was $89.9 million, down from $110.8 million. The net increase in net assets resulting from operations was $36.1 million for the quarter and $65.8 million for the six months, both lower than the previous year's figures.
The fund's total assets as of June 30, 2025, stood at $3.92 billion, slightly up from $3.91 billion at the end of 2024. The total investments at fair value were reported at $3.79 billion, a marginal decrease from $3.79 billion at the end of the previous fiscal year. The fund's liabilities increased to $2.13 billion from $2.07 billion, primarily due to higher debt levels, which rose to $2.05 billion from $1.97 billion. The net asset value per share decreased to $20.59 from $20.81, reflecting the overall decline in net assets.
In terms of operational developments, the fund's investment portfolio included 214 portfolio companies, with 18 new investment commitments made during the quarter. The weighted average yield on debt investments decreased to 10.1% from 11.6% year-over-year, attributed to declining base rates and repricing of existing loans. The fund maintained a strong focus on senior secured term loans, with 99.6% of performing debt bearing a floating rate.
Strategically, the fund has been active in managing its capital structure, including a recent share repurchase plan that allows for the repurchase of up to $100 million of its common stock. The fund also declared a distribution of $0.50 per share, payable on or around October 24, 2025. Looking ahead, the fund anticipates continued investment activity, supported by its available liquidity of approximately $75.8 million in cash and cash equivalents, alongside $1.1 billion in unused borrowing capacity under its credit facilities. The management remains optimistic about navigating market conditions and achieving its investment objectives.
About Morgan Stanley Direct Lending Fund
Morgan Stanley Direct Lending Fund is a non-diversified, externally managed company focused on providing senior secured loans and debt financing to U.S. middle-market companies. It targets private equity-backed firms with strong cash flow, leading market positions, and high barriers to entry. The fund seeks attractive risk-adjusted returns through disciplined credit analysis, active portfolio management, and leveraging Morgan Stanley’s extensive relationships and resources.
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