Morgan Stanley told investors in a Friday letter that the North Haven Private Income Fund restricted quarterly withdrawals after redemption requests arrived at more than double the fund's repurchase limit. The cap for the period was set at 5%.
Shareholders submitted requests equal to 11.4% of outstanding shares, roughly in line with the previous three months. According to the fund, repurchases covering three periods through September are poised to total roughly $479 million. Around two-thirds of the current requests originate from investors whose earlier submissions were only partially satisfied in the prior two buyback windows.
Across major private credit funds, redemption requests have eased lately, but they are still running high as investors keep trying to withdraw money from the $1.8 trillion asset class. Managers industrywide are working through an estimated $15 billion queue built up after last year's record wave of exits tied to worries over underwriting standards and exposure to older software deals. Morgan Stanley is one of several big players, alongside Blackstone Inc. and BlackRock Inc., that continue to restrict how much investors can take out.
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Morgan Stanley also curbed withdrawals at a smaller vehicle with under $1 billion in total investments after investors asked to pull roughly 7% of the shares. If you hold private credit exposure, expect longer lines and tighter gates while funds clear backlogs and manage repurchase windows.
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