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 7,419 funds
0
Analysts bullish %
of 5 analysts
Fund manager confidence
Based on 2024 Q4 regulatory disclosures by fund managers ($100M+ AUM)
775% more repeat investments, than reductions
Existing positions increased: 35 | Existing positions reduced: 4
457% more first-time investments, than exits
New positions opened: 39 | Existing positions closed: 7
56% more funds holding
Funds holding: 52 [Q3] → 81 (+29) [Q4]
29% more capital invested
Capital invested by funds: $334M [Q3] → $430M (+$96.1M) [Q4]
4.49% more ownership
Funds ownership: 18.9% [Q3] → 23.38% (+4.49%) [Q4]
0% more funds holding in top 10
Funds holding in top 10: 1 [Q3] → 1 (+0) [Q4]
86% less call options, than puts
Call options by funds: $343K | Put options by funds: $2.37M
Research analyst outlook
5 Wall Street Analysts provided 1 year price targets over the past 3 months
Low target
$19.50
1%
upside
Avg. target
$20
5%
upside
High target
$22
14%
upside
5 analyst ratings
1 positive
20%
4 neutral
80%
0 negative
0%
JP Morgan Melissa Wedel 39% 1-year accuracy 7 / 18 met price target | 1%upside $19.50 | Neutral Maintained | 24 Apr 2025 |
UBS Doug Harter 100% 1-year accuracy 1 / 1 met price target | 6%upside $21 | Neutral Maintained | 17 Apr 2025 |
Keefe, Bruyette & Woods Ryan Lynch 33% 1-year accuracy 1 / 3 met price target | 3%upside $20 | Market Perform Maintained | 8 Apr 2025 |
RBC Capital Kenneth Lee 11% 1-year accuracy 6 / 54 met price target | 14%upside $22 | Outperform Reiterated | 4 Mar 2025 |
Wells Fargo Finian O'Shea 50% 1-year accuracy 22 / 44 met price target | 3%upside $20 | Equal-Weight Maintained | 3 Mar 2025 |
Financial journalist opinion
Based on 16 articles about MSDL published over the past 30 days
Neutral
Seeking Alpha
23 hours ago
Investing In BDCs For Durable Income Amidst The Looming Recession
Rising non-accrual base is the BDC Achilles heel. The current economic conditions drive up the probability of that risk. Hence, the BDC income and NAV durability have become extremely important topics.
Negative
Seeking Alpha
3 days ago
The Dark Side Of BDC Investing
3 hidden risks that could cause your BDC income to get slashed overnight. Why top names may face sharp declines ahead. The only BDCs we are still buying at High Yield Investor are not the ones you may think.
Positive
Seeking Alpha
4 days ago
High-Yield Investors Rejoice: 2 Growth-Oriented BDCs Attractive On The Price Drop
Market volatility offers dividend investors a chance to buy high-quality BDCs like Blackstone Secured Lending and Morgan Stanley Direct Lending at attractive prices. Despite recession fears, BXSL and MSDL's strong fundamentals, low non-performing loans, and robust liquidity make them appealing investment opportunities. BXSL's $28 price and MSDL's discount to NAV present attractive entry points, backed by well-known asset managers and growth-focused strategies.
Positive
Seeking Alpha
5 days ago
Morgan Stanley Direct Lending Fund: Bet On Defensive Portfolio
Morgan Stanley Direct Lending Fund is a defensive BDC focusing on U.S.-based middle-market businesses with stable cash flows, low CAPEX, and diversified structures, mitigating operating risks. The portfolio's non-cyclical exposure and 96.5% first-lien debt investments ensure stability and priority in repayment, crucial during economic uncertainty. Despite trade war risks, MSDL's attractive valuation at ~0.92x Price-to-Book Value and solid income potential with a 10.5% regular DPS yield make it a compelling buy.
Negative
Seeking Alpha
5 days ago
BDC Weekly Review: Consequences Of The Trade War For BDCs
We take a look at the action in business development companies through the second week of April and highlight some of the key themes we are watching. BDCs experienced a 3% decline this week, with volatility at its highest since COVID; traded volumes matched COVID levels. The trade war and market meltdown are causing growth slowdowns and inflation, potentially leading to Fed rate cuts.
Positive
Seeking Alpha
6 days ago
Morgan Stanley Direct Lending: 10% Yield And 114% Dividend Coverage Make It A Buy
Morgan Stanley Direct Lending offers a high yield backed by a conservatively managed portfolio, primarily composed of first-lien secured debt. MSDL benefits from Morgan Stanley's extensive sponsor relationships and charges a below-industry-standard management fee, enhancing its appeal for value and income investors. At a 7% discount to NAV, MSDL presents an attractive investment opportunity, offering a mix of high income and value in a volatile market.
Negative
Seeking Alpha
1 week ago
BDC Weekly Review: BDCs Plunge On Macro Fears
We take a look at the action in business development companies through the first week of April and highlight some of the key themes we are watching. BDCs faced significant losses, with average returns around -9% on the week with valuations dropping below historical averages. Valuation uncertainty is high due to quarterly NAV declarations and systemic/idiosyncratic factors; estimated NAV drops are 2-3% from Q4 levels.
Positive
Seeking Alpha
1 week ago
A Big BDC Catalyst That Can Change The Game Dramatically
BDCs have been pushed into the (on average) ~19% discount territory. In my view, steep discounts are justified for the majority of the BDCs. Yet, for some (high-quality ones) the market has gone too far.
Negative
Seeking Alpha
1 week ago
BDCs Are In Trouble, But In These Two I'm Increasing My Stakes
BDCs have performed worse than the S&P 500. It is logical since private credit is per definition a high-risk asset class. All in all, many BDCs are in trouble.
Negative
Seeking Alpha
2 weeks ago
Very Bad News For BDCs: How To Play President Trump's Tariff Volatility
The business development company, or BDC, sector's strong run appears to be coming to an end. The dividend party may be over, and I share one sector favorite whose dividend may surprisingly be in trouble. I also share one BDC, whose dividend remains relatively safe and its stock trades at a compelling valuation.
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