Morgan Stanley Caps Redemptions at 5% for $7B Private Credit Fund as Withdrawal Requests Reach Double the Limit

Morgan Stanley (MS) again limited redemptions on its roughly $7 billion North Haven Private Income Fund in the third quarter after investor withdrawal requests exceeded the amount the fund was willing to repurchase by more than twofold. The fund capped redemptions at 5% while investors sought to redeem 11.4% of shares, roughly flat from the prior three-month period, Bloomberg reported. The fund said it completed about $479 million in repurchases over the three quarters through September, with nearly two-thirds of requests coming from investors already restricted in the prior two rounds. The move aligns Morgan Stanley with peers Blackstone (BX) and BlackRock (BLK), which have also kept redemption caps in place. Fund managers are still processing roughly $1.5 billion in pending withdrawal requests, following a record wave of pullouts over the past year tied to concerns about lending standards and exposure to early-stage software investments. Separately, another Morgan Stanley fund with under $1 billion in total assets also limited redemptions after receiving requests covering about 7% of its shares.