Morgan Stanley Direct Lending Fund (MSDL)

Morgan Stanley Direct Lending Fund (MSDL) is an externally managed business development company advised by an affiliate of Morgan Stanley Investment Management. It seeks to generate current income and, to a lesser extent, capital appreciation by lending to private companies.

The fund focuses on senior secured loans, primarily first lien, made directly to U.S. middle-market companies, many of which are owned by private equity sponsors. Its loans typically carry floating interest rates, and the portfolio is diversified across industries such as software, health care, business services and other sectors with stable cash flows.

The fund was formed in 2019 and listed its shares on the New York Stock Exchange in 2024. As a business development company that is taxed as a regulated investment company, it distributes most of its taxable income to shareholders.