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MSDL

Morgan Stanley Direct Lending Fund

MSDL

Morgan Stanley Direct Lending Fund • NYSE
$17.29 ▲ 1.11% (+0.19)
Market Cap $1.50 B
52w High $21.75
52w Low $15.70
Dividend Yield 2.00%
P/E 10.48
Volume 333.68K
Outstanding Shares 86.81M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $64.684M ▼ $2.778M ▲ $27.601M ▼ 42.671% ▼ $0.32 ▼ $28.003M ▼
Q2-2025 $73.044M ▲ $2.041M ▲ $36.096M ▲ 49.417% ▲ $0.41 ▲ $36.296M ▲
Q1-2025 $65.439M ▼ $963K ▲ $29.67M ▼ 45.34% ▼ $0.34 ▼ $30.297M ▼
Q4-2024 $84.034M ▼ $-1.808M ▲ $51.629M ▼ 61.438% ▼ $0.58 ▼ $52.629M ▼
Q3-2024 $85.001M $-1.859M $53.206M 62.595% $0.6 $53.707M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $65.472M ▼ $3.932B ▲ $2.161B ▲ $1.772B ▼
Q2-2025 $75.806M ▲ $3.922B ▲ $2.132B ▲ $1.79B ▼
Q1-2025 $65.58M ▼ $3.912B ▲ $2.094B ▲ $1.818B ▼
Q4-2024 $70.372M ▼ $3.912B ▲ $2.07B ▲ $1.842B ▼
Q3-2024 $90.428M $3.793B $1.94B $1.854B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $27.601M ▼ $34.405M ▼ $-12.756M ▼ $-25.825M ▲ $13.256M ▲ $34.405M ▼
Q2-2025 $36.096M ▲ $40.806M ▲ $1.66M ▲ $-32.314M ▲ $-17.184M ▼ $40.806M ▲
Q1-2025 $29.67M ▼ $34.104M ▲ $0 $-37.062M ▼ $-2.972M ▲ $34.104M ▲
Q4-2024 $51.629M ▼ $-96.183M ▲ $0 $78.115M ▼ $-18.056M ▼ $-96.183M ▲
Q3-2024 $53.206M $-117.032M $0 $112.494M $-4.538M $-117.032M

Five-Year Company Overview

Income Statement

Income Statement Earnings have scaled up meaningfully over the past few years from a very small base, which suggests the lending book has grown and matured. Profitability appears solid for a direct lender, with net income staying healthy even as revenues have recently eased a bit from their peak. The pattern is one of rapid growth, followed by a more level, “consolidation” year where profit per share dipped slightly but remained strong. As a fairly new public vehicle, the history is still short, so it’s hard to judge how the fund behaves across a full credit cycle, but early signs point to a profitable, disciplined approach rather than a volume-at-any-cost strategy.

Balance Sheet

Balance Sheet The balance sheet has expanded steadily, with total assets and shareholder equity both growing over time. Debt levels have also risen, which is expected for a leveraged lending vehicle, but equity has kept pace, indicating a measured use of borrowing rather than an overly aggressive stance. Cash on hand is intentionally low relative to assets, reflecting that capital is mostly put to work in loans rather than sitting idle. Overall, the structure looks like a typical direct lending portfolio: sizeable leverage, diversified loans, and a capital base that has been built up gradually rather than in one spike.

Cash Flow

Cash Flow Cash flow from operations was positive for several years and then turned negative most recently, even though reported earnings remained strong. For a direct lender, this often signals heavy new investment activity—funding new loans and growing the portfolio—rather than underlying weakness. Free cash flow moves in lockstep with operating cash flow here, since there is essentially no traditional capital spending. The key interpretation is that the fund appears to be in a deployment and growth phase, where cash is flowing out to build future income streams; the quality of those loans will be what matters over time.

Competitive Edge

Competitive Edge MSDL’s main edge comes from its deep integration with the broader Morgan Stanley platform. That connection provides access to a wide and often proprietary pipeline of middle‑market lending opportunities, especially to private‑equity‑backed companies. The fund focuses on senior, secured loans and more defensive sectors, aiming to protect capital while still earning attractive yields. Its private credit team has long experience in structuring and monitoring complex loans, and the Morgan Stanley name can be a draw for both sponsors and borrowers. The main risk is that the direct lending space is crowded, so maintaining pricing power and credit discipline as competition intensifies will be critical.

Innovation and R&D

Innovation and R&D Innovation here is more about platform and process than classic “R&D.” MSDL appears to benefit from Morgan Stanley’s broader investments in technology, data, and risk systems, even though the fund itself does not highlight any single, standout proprietary tool. Its edge lies in a rigorous, institutional investment process, flexible loan structures tailored to sponsors, and the ability to move quickly and with certainty on deals. Looking ahead, potential innovation areas include deeper use of analytics in underwriting, expansion into new sectors or regions via the global platform, and more investor‑friendly, “evergreen” structures. For now, the story is one of strong institutional backing rather than cutting‑edge fintech differentiation.

Summary

MSDL looks like a scaled, profitable direct lending platform wrapped in a relatively new public vehicle, backed by one of the largest global financial institutions. Earnings have grown substantially from a small base and remain healthy, supported by a steadily expanding balance sheet and active deployment of capital. The short public history and recent negative operating cash flow point to a business still in an aggressive growth and portfolio‑building phase, which brings both opportunity and execution risk. Its competitive strength rests on Morgan Stanley’s network, sponsor relationships, underwriting discipline, and brand, rather than on a unique technology play. Over time, the key things to watch will be credit performance through weaker markets, how prudently leverage is managed, and whether the platform can keep finding attractive loans without sacrificing standards in a crowded private credit landscape.

NEWS

November 6, 2025 · 4:15 PM UTC

Morgan Stanley Direct Lending Fund Announces September 30, 2025 Financial Results and Declares Fourth Quarter 2025 Regular Dividend of $0.50 per Share

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October 6, 2025 · 4:10 PM UTC

Morgan Stanley Direct Lending Fund Announces Third Quarter 2025 Earnings Release and Conference Call

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