Morgan Stanley Direct Lending Fund (MSDL) Stock Overview
A business development company. More details
| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
MSDL Community Fair Values
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Analyst Price Targets
Morgan Stanley Direct Lending Fund Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$15.37 |
| 52 Week High | US$19.94 |
| 52 Week Low | US$13.66 |
| Beta | 0.62 |
| 1 Month Change | 1.12% |
| 3 Month Change | 6.74% |
| 1 Year Change | -20.53% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -25.53% |
Recent News & Updates
Seeking Alpha • Jun 15
Morgan Stanley Direct Lending: Time To Click 'Risk-Off' Button (Rating Downgrade)
Summary I'm assigning a hold to Morgan Stanley Direct Lending, reflecting a balanced risk/reward profile after recent price appreciation. MSDL's fundamentals remain solid with a 21% NAV discount, low non-accruals, and below-average PIK, but sector-relative valuation is no longer compelling. Key concerns include high debt-to-equity, limited NII growth prospects, and significant SaaS portfolio exposure that could pressure future performance. I favor high-quality, internally managed BDCs or externally managed peers with superior defensive attributes and margin of safety, such as KBDC. Read the full article on Seeking Alpha
New Narrative • Mar 30
Rebound In Sponsor Deals And Accretive Buybacks Will Support This Lender’s Earnings Stability
Catalysts About Morgan Stanley Direct Lending Fund Morgan Stanley Direct Lending Fund provides primarily first lien loans to private, sponsor backed middle market companies across diversified sectors. What are the underlying business or industry changes driving this perspective?Recent updates
Seeking Alpha • Jun 15
Morgan Stanley Direct Lending: Time To Click 'Risk-Off' Button (Rating Downgrade)
Summary I'm assigning a hold to Morgan Stanley Direct Lending, reflecting a balanced risk/reward profile after recent price appreciation. MSDL's fundamentals remain solid with a 21% NAV discount, low non-accruals, and below-average PIK, but sector-relative valuation is no longer compelling. Key concerns include high debt-to-equity, limited NII growth prospects, and significant SaaS portfolio exposure that could pressure future performance. I favor high-quality, internally managed BDCs or externally managed peers with superior defensive attributes and margin of safety, such as KBDC. Read the full article on Seeking AlphaNew Narrative • Mar 30
Rebound In Sponsor Deals And Accretive Buybacks Will Support This Lender’s Earnings Stability
Catalysts About Morgan Stanley Direct Lending Fund Morgan Stanley Direct Lending Fund provides primarily first lien loans to private, sponsor backed middle market companies across diversified sectors. What are the underlying business or industry changes driving this perspective?Seeking Alpha • Apr 18
Morgan Stanley Direct Lending: 10% Yield And 114% Dividend Coverage Make It A Buy
Summary 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. Read the full article on Seeking AlphaSeeking Alpha • Mar 13
Morgan Stanley Direct Lending Fund: Attractive Entry Point For This High-Performing BDC
Summary MSDL retains its impressive portfolio quality with low non-accruals and net realized losses. MSDL trades at a 9.9% dividend yield, with a well-diversified portfolio and stable NAV. Management expects increased LBO volumes and new lending opportunities, which should support fee levels and present new lending opportunities. On a 3-year valuation-adjusted total NAV return, MSDL looks attractive, prompting us to increase our allocation. Read the full article on Seeking AlphaSeeking Alpha • Mar 06
MSDL: Buy This 10% Yield For Troubled Times
Summary Morgan Stanley Direct Lending Fund offers a 10% dividend yield and a low-risk business model, making it an attractive income investment in volatile markets. MSDL's Q4 2024 report showed a slight decline in net investment income due to lower interest rates and reduced fee waivers, but overall stability. The fund's portfolio quality remains high, with most loans in low-risk categories, and it trades at an attractive valuation of 0.97x net asset value. Despite potential interest rate risks, MSDL's strong brand, excellent dividend yield, and stable NAV make it a compelling choice for income investors. Read the full article on Seeking AlphaSeeking Alpha • Feb 02
Morgan Stanley Direct Lending Will Shine In Our 'Higher For Longer' Rate Outlook
Summary The Morgan Stanley Direct Lending Fund (MSDL) offers high yields by providing privately negotiated loans to middle-market companies, focusing on senior secured debt. MSDL has shown strong performance and volatility, making it suitable for aggressive income investors seeking high dividends, with a current yield near 10%. The fund's diversified portfolio across non-cyclical sectors and investment-grade credit rating make it a compelling option, despite inherent risks. I recommend a buy rating for MSDL, advising aggressive investors to consider up to a 2% allocation while pairing it with other quality BDCs. Read the full article on Seeking AlphaSeeking Alpha • Jan 16
Morgan Stanley Direct Lending: Dividend Powerhouse Thriving In A High Rate World
Summary Morgan Stanley Direct Lending offers a well-constructed portfolio of first-lien senior secured loans, with 95% geared towards non-cyclical industries, helping to ensure stability in a volatile market. MSDL's conservative management strategy, low non-accrual investments, and robust 132% dividend coverage make it an attractive choice for income-focused investors, yielding 9.5%. Trading near NAV, MSDL has potential for NAV/share accretion through retained capital, making it a compelling investment in a higher-for-longer interest rate environment. Read the full article on Seeking AlphaSeeking Alpha • Dec 31
Morgan Stanley Direct Lending: Growing And Diversifying Its Portfolio
Summary MSDL's portfolio is growing and diversifying with an increase in investee companies. The outlook is also bright, with a more vibrant deal environment expected in 2025. MSDL stands to benefit asymmetrically from falling rates, as yields are expected to remain more resilient, whereas interest costs are likely to fall in tandem with 2025's rate cuts. MSDL's valuations are at a premium relative to its historical 1-yr fwd P/Es, the broader BDC sector and on a P/NAV basis, reducing the margin of safety for buys. MSDL buyers are holding monthly support vs S&P500 after underperforming the broader market in H2 2024. I anticipate a period of consolidation before more sustained moves upward. A continued increase in MSDL's unsecured debt mix is a risk factor to monitor, as the higher cost of funding from unsecured debt may partially offset the fall in broader interest rates. Read the full article on Seeking AlphaSeeking Alpha • Dec 11
Morgan Stanley Direct Lending: A Low-Risk 10% Yield
Summary Morgan Stanley Direct Lending Fund offers a 10% dividend yield, strong brand backing, and growth potential, making it an appealing choice for income investors. The fund's low-risk portfolio, with 96% in senior secured debt, and diversified borrower base reduce overall investment risk. Despite interest rate declines, MSDL's portfolio growth and low leverage levels have maintained stable net investment income per share. Trading at book value with a well-covered dividend and occasional buybacks, MSDL presents a fair valuation and appealing risk-reward profile. Read the full article on Seeking AlphaSeeking Alpha • Nov 10
Morgan Stanley Direct Lending: Rapidly Expanding Portfolio Supports High Yield
Summary Morgan Stanley Direct Lending (MSDL) offers a strong dividend yield of 7.4%, fully covered by net investment income, ensuring reliable income generation for investors. The portfolio is diversified across 200 companies with a focus on floating rate, senior secured first lien investments, minimizing risk. MSDL's non-accrual rate is impressively low at 0.2%, indicating strong borrower resilience and effective management. Trading at a discount to NAV, MSDL presents an attractive entry point with potential upside, supported by robust financial health and growth prospects. Read the full article on Seeking AlphaSeeking Alpha • Oct 28
Morgan Stanley Direct Lending: 10% Yield, 126% Dividend Coverage And Discount To Book
Summary Morgan Stanley Direct Lending offers a 10% dividend yield, supported by a diversified portfolio of first lien senior secured loans in non-cyclical industries. MSDL's favorable cost structure, conservative leverage, and strong balance sheet position it to benefit from growing private credit demand. Trading at a 5% discount to NAV, MSDL provides strong dividend coverage and increasing NAV per share, making it appealing for income-focused investors. Read the full article on Seeking AlphaSeeking Alpha • Oct 08
Morgan Stanley Direct Lending: Likely To Become A Major Player Amongst Its Peers
Summary Morgan Stanley Direct Lending Fund shows strong fundamentals and growth, with solid dividend coverage and a healthy portfolio, despite its short track record. MSDL's investment-grade credit ratings and manageable debt positions them well for future growth, but high exposure to floating rate loans poses risks. Trading at a slight discount to NAV, MSDL offers a compelling buy opportunity for income-oriented investors, though upside is limited due to potential rate declines. I rate MSDL a hold due to limited upside, high floating rate loan exposure, and the potential for tighter financials moving forward. Read the full article on Seeking AlphaSeeking Alpha • Sep 26
Morgan Stanley Direct Lending Fund: Solid Yield Enhancer At Limited Risk
Summary April this year, I wrote a bullish piece on MSDL. Since then the total return performance has landed at negative 5%. This is mostly explained by the end of the post-IPO lock-up period, not underlying fundamentals. Looking at Q2, 2024 earnings, we will see a continued stability with many data points being clearly better than for most of other BDCs. In this article I explain why I remain bullish on MSDL. Read the full article on Seeking AlphaSeeking Alpha • Sep 04
MSDL: Attractive Entry Point On Lock-Up Expiry In This 11.6% Yielding BDC
Summary MSDL delivered a strong Q2 with a 3.2% total NAV return and a rise in both NAV and NII. The stock trades at an 11.6% yield and a slight discount to book. The valuation rose post-IPO but dipped after the first lock-up expiry; another potential entry point may arise in October. MSDL's stable returns, low non-accruals, and realized losses make it a higher quality BDC. Read the full article on Seeking AlphaSeeking Alpha • Aug 05
Morgan Stanley Direct Lending: Brand Name BDC Yields 10% With Defensive Portfolio
Summary BDCs are attractive to income investors due to high distribution requirements. Morgan Stanley Direct Lending Fund recently did an IPO and offers a 9.9% market yield. MSDL has a defensive portfolio, strong financial position, and potential for growth, but faces risks from economic slowdown and market competition. Read the full article on Seeking AlphaSeeking Alpha • Jul 02
Morgan Stanley Direct Lending: Well Supported Dividend And Low Non-Accruals
Summary Morgan Stanley Direct Lending is a new business development company with solid potential as a long-term holding. Net investment income per share covers the distribution by a comfortable margin. Non-accruals are relatively low, sitting at 0.4% at cost. The current dividend sits at 9.2% and there is potential for growth if the portfolio continues to grow. Lower interest rates may have an effect on NII per share, but this can be offset through a higher volume of potential borrowers. Read the full article on Seeking AlphaSeeking Alpha • May 24
Morgan Stanley Direct Lending: Great Momentum After Q1, Still A Buy
Summary Morgan Stanley Direct Lending Fund has outperformed the overall BDC market by 330 basis points since the publication of my article in early April. MSDL's Q1 2024 earnings report shows a slight decrease at both top-line and net investment income level. Yet, if we analyze the situation a bit deeper, we will notice that a strong underlying growth momentum. In this article, I explain why after Q1, 2024 results, MSDL remains one of my favorite BDC picks. Read the full article on Seeking AlphaSeeking Alpha • Apr 01
MSDL: A New Player In The BDC Town That Is Worth Buying
Summary Morgan Stanley Direct Lending Fund, which entered the public market space in January this year, has registered strong total returns above the index. Currently, MSDL trades a slight premium over its NAV, which theoretically leads to an unfavorable entry point. Yet, looking at the underlying fundamentals, it is clear that the premium is fully justified, and that MSDL embodies all of the necessary characteristics to keep delivering strong results. In this article, I elaborate on the key aspects of MSDL and articulate why this BDC is a buy for me. Read the full article on Seeking AlphaSeeking Alpha • Mar 19
MSDL: Morgan Stanley Brings Its Expertise To BDC World
Summary Morgan Stanley launches a Business Development Company to attract retail investor funds and expand into smaller firms. The Morgan Stanley Direct Lending Fund primarily invests in riskier bonds issued by middle-market companies or private equity firms. The fund focuses on companies with strong management teams, primary financial backers, and industry diversification to mitigate risk. Being a new BDC, it gets Hold rating even though the managing firm has 100 year of experience in the lending business. Read the full article on Seeking AlphaShareholder Returns
| MSDL | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -1.2% | 1.1% | 1.4% |
| 1Y | -20.5% | 11.7% | 25.7% |
Return vs Industry: MSDL underperformed the US Capital Markets industry which returned 11.5% over the past year.
Return vs Market: MSDL underperformed the US Market which returned 25.1% over the past year.
Price Volatility
| MSDL volatility | |
|---|---|
| MSDL Average Weekly Movement | 3.1% |
| Capital Markets Industry Average Movement | 3.7% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: MSDL has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: MSDL's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2019 | n/a | Michael Occi | n/a |
Morgan Stanley Direct Lending Fund is a business development company. The fund chiefly invests in riskier bonds, issued by middle-market companies or by private equity firms looking to finance their acquisitions.
Morgan Stanley Direct Lending Fund Fundamentals Summary
| MSDL fundamental statistics | |
|---|---|
| Market cap | US$1.30b |
| Earnings (TTM) | US$87.91m |
| Revenue (TTM) | US$384.89m |
14.8x
P/E Ratio3.4x
P/S RatioIs MSDL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MSDL income statement (TTM) | |
|---|---|
| Revenue | US$384.89m |
| Cost of Revenue | US$0 |
| Gross Profit | US$384.89m |
| Other Expenses | US$296.98m |
| Earnings | US$87.91m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.04 |
| Gross Margin | 100.00% |
| Net Profit Margin | 22.84% |
| Debt/Equity Ratio | 121.4% |
How did MSDL perform over the long term?
See historical performance and comparisonDividends
11.7%
Current Dividend Yield192%
Payout RatioDoes MSDL pay a reliable dividends?
See MSDL dividend history and benchmarks| Morgan Stanley Direct Lending Fund dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2026 |
| Dividend Pay Date | Jul 24 2026 |
| Days until Ex dividend | 10 days |
| Days until Dividend pay date | 34 days |
Does MSDL pay a reliable dividends?
See MSDL dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/20 09:48 |
| End of Day Share Price | 2026/06/18 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Morgan Stanley Direct Lending Fund is covered by 9 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Richard Shane | J.P. Morgan |
| Melissa Wedel | J.P. Morgan |
| Paul Johnson | Keefe, Bruyette, & Woods |