Morgan Stanley Sets Redemption Limit for Private Credit Fund at 5%

On June 24, Morgan Stanley (MS.N) announced that its $7 billion private credit fund has set a redemption limit for investors at 5%, allowing only less than half of the redemption requests submitted by investors for the second quarter to be fulfilled. In a letter sent on Tuesday, the North Haven Private Income Fund stated that investors applied to redeem 11.6% of their holdings in the second quarter, up from 10.9% in the first quarter. In the approximately $1.8 trillion private credit market, overall redemption requests have generally increased this quarter as many funds had previously restricted full exits in the prior quarter. The fund noted in its letter that more than half of the redemption requests in the second quarter came from investors who had been unable to fully redeem their funds in the previous three months.