Morgan Stanley's North Haven Private Income Fund (PIF) has launched a debt offering to raise $350 million. The fund, with approximately $7 billion in gross assets, aims to use the proceeds from this bond sale to diversify its funding sources. This move comes as PIF, along with other private credit funds, has been facing increased investor redemption requests.
In the second quarter, PIF capped investor withdrawals at 5% of its shares after receiving requests to redeem 11.6%, allowing less than half of what investors sought to pull out. This followed a first quarter where 10.9% of shares were requested for redemption. The fund stated that of the latest requests, about half came from investors who had been unable to fully cash out earlier. This is the second time in three quarters that the fund, which holds an investment-grade rating, has implemented such a cap, having first done so in late 2025.
PIF's actions reflect a broader trend in the $1.8 trillion private credit market, where major funds, including those run by Apollo, Blackstone, and BlackRock, have also limited investor withdrawals due to mounting concerns over lending standards and market volatility. Morgan Stanley indicated that PIF was invested in 301 borrowers across 45 industries as of May 31, with approximately 22.7% exposure to the software industry. The fund’s management believes the stabilization in the level of request activity compared to the first quarter might indicate durability in its investor base, even as analysts predict continued elevated redemptions for non-traded BDCs.
