Investors sought to withdraw 11.4% of shares from Morgan Stanley’s North Haven Private Income Fund (PIF) in Q3—slightly down from 11.6% in Q2—reflecting ongoing redemption pressure across non-traded private credit vehicles.
Key Takeaways:
- Cap Enforced: PIF will honor the customary 5% quarterly repurchase cap, resulting in an estimated net asset value (NAV) impact of ~$101 million after factoring in new subscriptions and reinvested dividends.
- Backlog Clearing: Nearly two-thirds of requests came from previous unfulfilled tenders; upon completion, investors seeking full exits over the past two quarters will have received >80% of requested funds.
- Sister Fund Data: North Haven Private Income Fund A (PIF A) logged 6.8% in withdrawal requests (vs. 7.2% in Q2) and will also repurchase the 5% maximum.
- Industry Context: Elevated withdrawals across private credit stem from investor concerns over lending standards and software borrower vulnerability to AI disruptions.
While withdrawal queues remain tight, backlogs are steadily stabilizing across major direct lending platforms! 📊💵