Private Credit Portfolio Analysis | Morgan Stanley Direct Lending Fund Reports Q3 2024 Results
- Editor
- Nov 12, 2024
- 2 min read
What's New:
Morgan Stanley Direct Lending Fund's Q3 2024 report shows significant portfolio growth and increased investment activity. The fund's total assets rose to $3.79 billion as of September 30, 2024, up from $3.31 billion at the end of 2023. This growth was primarily driven by a substantial increase in investments owned at fair value, which reached $3.64 billion, compared to $3.19 billion at year-end 2023.
Portfolio Dynamics:
Investment portfolio grew by 14% to $3.64 billion from $3.19 billion at year-end 2023.
Cash and cash equivalents increased to $90.43 million from $69.71 million at the end of 2023.
Dividend and interest receivable rose slightly to $31.79 million from $28.88 million at year-end.
Investment Activity :
Payments for purchase of investments totaled $1.04 billion in the first nine months of 2024.
Proceeds from disposition of investments amounted to $612.16 million during the same period.
Net investment activity resulted in a $425.81 million increase in investments for the nine-month period.
Capital Structure:
Long-term debt increased to $1.84 billion from $1.50 billion at the end of 2023.
Total liabilities grew to $1.94 billion from $1.59 billion at year-end 2023.
Stockholders' equity rose to $1.85 billion from $1.72 billion at the end of 2023.
Performance Profile:
Net income for the nine months ended September 30, 2024, was $163.94 million.
Net Asset Value (NAV) per share increased to $20.83 from $20.67 at year-end 2023.
Dividend payments totaled $115.64 million for the first nine months of 2024.
Risk & Quality:
Realized losses on investments were $16.48 million for the nine-month period.
Unrealized losses on investments amounted to $10.92 million during the same period.
Interest paid net was $86.87 million for the first nine months of 2024.
The Wrap: Morgan Stanley Direct Lending Fund demonstrated robust growth in Q3 2024, with significant increases in total assets and investments. The fund's portfolio expansion was supported by increased long-term debt and equity. While the fund reported substantial investment income, it also faced realized and unrealized losses on investments. The increase in NAV per share suggests overall positive performance, despite the challenging investment environment.
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