Updated
Updated · Bloomberg · Jun 24
Morgan Stanley Caps $7 Billion Credit Fund Withdrawals at 5% After 11.6% Exit Requests
Updated
Updated · Bloomberg · Jun 24

Morgan Stanley Caps $7 Billion Credit Fund Withdrawals at 5% After 11.6% Exit Requests

3 articles · Updated · Bloomberg · Jun 24

Summary

  • Morgan Stanley’s North Haven Private Income Fund will honor only 5% of withdrawals in the second quarter, meeting less than half of investors’ 11.6% redemption requests.
  • The gate tightened from an already elevated first quarter, when investors sought to redeem 10.9% of shares, showing exit pressure continued to build.
  • The $7 billion fund sits in a private credit market where withdrawal requests have broadly risen this quarter after many managers blocked full exits in the prior period.
  • That pattern underscores persistent liquidity strain across the $1.8 trillion private credit sector as investors keep trying to pull cash from less-liquid vehicles.

Insights

As private credit funds halt withdrawals, was the promise of easy cash from illiquid assets always a fantasy?
With billions trapped in private credit, are withdrawal gates a protective feature or a bug threatening the financial system?
Is AI's disruption of software debt the first domino to fall in the opaque, $2 trillion private credit market?