Morgan Stanley Direct Lending Fund

MSDL

Market cap $1.52B

Overview Fund Activity

17.45 USD

-0.01

0.06%

At close Updated Sep 17, 4:00 PM EDT

Pre-market

After hours

17.70

+0.25

1.43%

1 day

-0.06%

5 days

-1.41%

1 month

-2.08%

3 months

-9.54%

6 months

-14.92%

Year to date

-16.55%

1 year

-12.49%

5 years

-15.46%

10 years

-15.46%

About: Morgan Stanley Direct Lending Fund is a fund whose investment objective is to achieve attractive risk-adjusted returns via current income and to a lesser extent, capital appreciation by investing predominantly in directly originated senior secured term loans issued by U.S. middle-market companies backed by private equity sponsors. It invests predominantly in directly originated senior secured term loans including first lien senior secured term loans including unitranche loans and second lien senior secured term loans, with the balance of the investments expected to be in higher-yielding assets such as mezzanine debt, unsecured debt, equity investments and other opportunistic asset purchases.

Financials Asset Management

0

Funds holding %

of 7,463 funds

0

Analysts bullish %

of 3 analysts

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

118% more first-time investments, than exits

New positions opened: 24 | Existing positions closed: 11

100% more funds holding in top 10

Funds holding in top 10: 1 [Q1] → 2 (+1) [Q2]

92% more repeat investments, than reductions

Existing positions increased: 48 | Existing positions reduced: 25

14% more funds holding

Funds holding: 95 [Q1] → 108 (+13) [Q2]

2.55% more ownership

Funds ownership: 29.03% [Q1] → 31.58% (+2.55%) [Q2]

1% more capital invested

Capital invested by funds: $513M [Q1] → $520M (+$6.87M) [Q2]

21% less call options, than puts

Call options by funds: $1.7M | Put options by funds: $2.15M

See Fund Rankings

Research analyst outlook

3 Wall Street Analysts provided 1 year price targets over the past 3 months

Low target

$17

3% downside

Avg. target

$19

9% upside

High target

$21

20% upside

3 analyst ratings

1 positive

33%

2 neutral

67%

0 negative

0%

RBC Capital Kenneth S. Lee	$19	Outperform Maintained	10 Sep 2025
Wells Fargo Finian O'Shea	$17	Equal-Weight Maintained	14 Aug 2025
UBS Doug Harter	$21	Neutral Maintained	16 Jul 2025

See Analyst Rankings

Financial journalist opinion

Based on 8 articles about MSDL published over the past 30 days

Are You Falling For These 3 BDC Dividend Myths

BDCs have two issues: 1) almost no margin of safety for dividend coverage, and 2) depressed earnings outlook. For many players it is just a matter of several quarters before they become forced to cut dividends. Yet, there are many arguments, which negate such a view. Unfortunately, many of them ar myths.

Are You Falling For These 3 BDC Dividend Myths

5 BDCs That Deliver Double-Digit Yields (Up To 12.6%)

Wall Street suits tend to avoid business development companies (BDCs). That's a mistake.

5 BDCs That Deliver Double-Digit Yields (Up To 12.6%)

The Worst Setup For BDCs In Years

BDCs have outperformed over the past half-decade. However, macro and sector conditions are shifting rapidly. This could be the toughest environment BDCs have faced in years.

The Worst Setup For BDCs In Years

CEFs Are Becoming Less Appealing For Income Investors

The investment case for closed-end funds (CEFs) is weak now due to tight discounts, high leverage costs, and expensive underlying assets. Most CEFs do not deliver sustainable alpha, and lower-fee actively managed ETFs now offer similar exposures with better economics. We have reduced our CEF allocation, favoring alternatives like BDCs, select ETFs, preferreds, and bonds for better value and risk/reward.

CEFs Are Becoming Less Appealing For Income Investors

Buy The Dip: 8-11% Blue Chip Yields Getting Way Too Cheap

Wall Street is asleep on two monster yields that could fuel early retirement. These blue-chip payouts are too cheap to last. Here's why I'm adding them to my portfolio before the market wakes up.

Buy The Dip: 8-11% Blue Chip Yields Getting Way Too Cheap

Morgan Stanley Direct Lending: Consistent Performer With A Rockbottom Valuation

We take a look at the Q2 results of BDC MSDL, which trades at an 11.3% dividend yield and a 14% discount. MSDL allocates primarily to less-cyclical sectors such as Software, Insurance and Commercial Services. Total NAV return clocked in at 2.2%, below the median but above the average in the sector.

Morgan Stanley Direct Lending: Consistent Performer With A Rockbottom Valuation

Morgan Stanley Direct Lending Is A Buy At A 14% Discount To NAV And 11.34% Dividend Yield

MSDL offers a compelling 11.34% dividend yield and trades at a 14% discount to NAV, presenting an attractive entry point. The portfolio is 96.4% first lien, 99.6% floating rate loans, and focused on U.S. middle market companies, avoiding cyclical sectors. Risks include potential dividend cuts if rates fall, but even a reduced payout would yield 9% at current prices, with a continued NAV discount.

Morgan Stanley Direct Lending Is A Buy At A 14% Discount To NAV And 11.34% Dividend Yield

Morgan Stanley Direct Lending: 0.86x P/NAV, 11.6% Yield, But How Safe Is The Dividend?

MSDL faces mounting headwinds, with recent earnings showing declining net investment income and increased non-accruals, raising concerns about credit quality and dividend safety. Despite an attractive valuation and strong balance sheet, MSDL's short track record and tightening dividend coverage make me cautious about near-term prospects. Dividend coverage is now at 100%, and with economic uncertainty and lower base rates ahead, I see a 50/50 chance of a dividend cut within 4-6 months.

Morgan Stanley Direct Lending: 0.86x P/NAV, 11.6% Yield, But How Safe Is The Dividend?

Attention High-Yield Investors: More BDC Dividend Cuts Are Likely Coming

The BDC sector faces mounting risks from a weakening economy, high consumer debt, and the potential for further dividend cuts as interest rates decline. Recent dividend cuts by several BDCs highlight the sector's vulnerability, despite some names maintaining resilience and attractive valuations. Spillover income offers only limited protection; tight dividend coverage and rising non-accruals signal caution for income-focused investors.

Attention High-Yield Investors: More BDC Dividend Cuts Are Likely Coming

It's All Downhill For Most BDCs, Here Is My Approach

Q2 earnings confirmed my call for a market rotation in BDCs; quality bias and selectivity remain critical for outperformance. Structural headwinds—spread compression, falling base rates, and thin dividend coverage—signal elevated risk of further dividend cuts across the sector. Current sector repricing is insufficient for broad new BDC allocations; most remain unattractive except for select names with strong fundamentals.

It's All Downhill For Most BDCs, Here Is My Approach

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