Morgan Stanley Direct Lending FundMSDL
MSDL
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.
0
Funds holding %
of 7,429 funds
–
Analysts bullish %
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]
100% more repeat investments, than reductions
Existing positions increased: 48 | Existing positions reduced: 24
13% more funds holding
Funds holding: 95 [Q1] → 107 (+12) [Q2]
2.52% more ownership
Funds ownership: 29.03% [Q1] → 31.55% (+2.52%) [Q2]
1% more capital invested
Capital invested by funds: $513M [Q1] → $519M (+$6.46M) [Q2]
11% less call options, than puts
Call options by funds: $1.48M | Put options by funds: $1.66M
Research analyst outlook
2 Wall Street Analysts provided 1 year price targets over the past 3 months
Low target
$17
4%
downside
Avg. target
$19
8%
upside
High target
$21
19%
upside
2 analyst ratings
0 positive
0%
2 neutral
100%
0 negative
0%
Wells Fargo Finian O'Shea | 4%downside $17 | Equal-Weight Maintained | 14 Aug 2025 |
UBS Doug Harter | 19%upside $21 | Neutral Maintained | 16 Jul 2025 |
Financial journalist opinion
Based on 9 articles about MSDL published over the past 30 days
Positive
Seeking Alpha
4 days ago
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.
Negative
Seeking Alpha
1 week ago
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.
Negative
Seeking Alpha
1 week ago
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.
Neutral
Seeking Alpha
2 weeks ago
Morgan Stanley Direct Lending: This BDC Continues To Disappoint (Rating Downgrade)
MSDL's Q2 earnings disappointed, with declining NAV, weak dividend coverage, and rising non-accruals signaling fundamental portfolio issues. Despite a tempting 11% yield and deep discount to NAV, I see the discount as a reflection of ongoing risks, not a buying opportunity. Management struggles to deploy capital into new investments, and net investment income barely covers the dividend, leaving little margin for error.
Positive
Seeking Alpha
2 weeks ago
Morgan Stanley Direct Lending: Bad Q2 Results, And It's Just Getting Started
MSDL remains a high-quality BDC with stable portfolio values and low non-accruals, but recent earnings highlight growing risks. Dividend coverage is now razor-thin, with NII per share barely matching payouts and no margin of safety left. Spread compression and unresolved refinancing risks threaten future earnings, especially if base rates are cut as expected.
Positive
Seeking Alpha
2 weeks ago
Putting Morgan Stanley Direct Lending's 11%+ Dividend Payout Under The Microscope
MSDL offers a compelling 11%+ dividend yield and trades at a significant discount to NAV, despite strong underwriting and portfolio quality. However, dividend coverage is tight at 1.0x, and the company is facing several growing risks that could force it to cut its dividend. We take a look at the good and the bad at MSDL after its Q2 results and earnings call and share our view on the sustainability of the dividend.
Neutral
Seeking Alpha
2 weeks ago
Morgan Stanley Direct Lending Fund (MSDL) Q2 2025 Earnings Call Transcript
Morgan Stanley Direct Lending Fund (NYSE:MSDL ) Q2 2025 Earnings Conference Call August 8, 2025 10:00 AM ET Company Participants Ashwin Krishnan - Corporate Participant David Pessah - Chief Financial Officer David Miller - Corporate Participant Michael Occi - CEO & Director Sanna Johnson - Corporate Participant Conference Call Participants Cory Johnson - UBS Investment Bank, Research Division Heli Sheth - Raymond James & Associates, Inc., Research Division Melissa Wedel - JPMorgan Chase & Co, Research Division Paul Conrad Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Operator Welcome to Morgan Stanley Direct Lending Second Quarter 2025 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.
Negative
Zacks Investment Research
2 weeks ago
Morgan Stanley Direct Lending Fund (MSDL) Q2 Earnings and Revenues Lag Estimates
Morgan Stanley Direct Lending Fund (MSDL) came out with quarterly earnings of $0.5 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.63 per share a year ago.
Neutral
Business Wire
2 weeks ago
Morgan Stanley Direct Lending Fund Announces June 30, 2025 Financial Results and Declares Third Quarter 2025 Regular Dividend of $0.50 per Share
NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”), a business development company externally managed by MS Capital Partners Adviser Inc. (the “Adviser”), today announced its financial results for the second quarter ended June 30, 2025. QUARTERLY HIGHLIGHTS Net investment income of $43.7 million, or $0.50 per share, as compared to $46.2 million, or $0.52 per share, for the quarter ended March 31, 2025; Net asset value of $20.59 per share, as com.
Positive
Seeking Alpha
1 month ago
8%-Yielding Portfolio: Building The Near-Perfect Dividend Snowball
We discuss the secrets to building a near-perfect dividend snowball. We discuss many of the best dividend machines for building a dividend snowball portfolio. We share a model portfolio that yields 8% and should not only provide sustainable income, but also grow its dividends over time.
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