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Morgan Stanley Fund Blocks Investor Cash
19 Sep
Summary
- Morgan Stanley's private credit fund is restricting withdrawals.
- Investors requested double the amount the fund could repurchase.
- Redemptions were capped at 5% for the third quarter.
Morgan Stanley has again imposed restrictions on redemptions for its substantial private credit fund. The North Haven Private Income Fund, valued at nearly $7 billion, is limiting the amount of money investors can withdraw during the third quarter.
This decision comes as a result of significant demand from investors seeking to repurchase their holdings. These requests surpassed double the amount the fund was prepared to offer for buybacks, highlighting investor concerns or liquidity needs.
Ultimately, the fund has capped withdrawals at 5%. This measure was implemented after investors specifically asked to pull 11.4% of the fund's assets, indicating a substantial gap between investor desires and the fund's current liquidity.
