Morgan Stanley Limits Private Credit Fund Withdrawals for Third Quarter

Morgan Stanley limited withdrawals from its North Haven Private Income Fund for the third consecutive quarter, capping third-quarter redemptions at 5% of shares. This action followed investor requests totaling 11.4% of the fund's shares. Total repurchases across the three periods ending in September reached approximately $479 million.

Nearly two-thirds of the most recent redemption requests came from investors who had already faced limits during the previous two quarters. The firm also restricted withdrawals from a second, smaller credit fund with under $1 billion in investments after redemption requests reached 7% of shares.

These restrictions reflect a broader trend within the $1.8 trillion private credit market, which currently manages a $15 billion backlog of redemption requests. Other major asset managers, including Blackstone and BlackRock, have similarly restricted withdrawals from private credit vehicles. Investors have cited concerns over underwriting standards and exposure to older software investments as drivers for their requests.