Morgan Stanley Direct Lending Fund Cuts Quarterly Dividend 10% to $0.45
Morgan Stanley Direct Lending Fund declared a $0.45 per share quarterly dividend, down from $0.50 in the prior quarter. The dividend will be paid April 24 to shareholders of record March 31.
Morgan Stanley Direct Lending Fund (NYSE: MSDL), a business development company focused on middle-market lending, declared a quarterly dividend of $0.45 per share on February 26, 2026. The distribution marks a 10% reduction from the prior quarter's $0.50 per share payout. Read more dividend announcements.
The dividend will be paid on or around April 24, 2026 to shareholders of record as of March 31, 2026. The company's board approved the distribution as part of its regular quarterly dividend schedule.
| Dividend Details | Information |
|---|---|
| Amount | $0.45 per share |
| Record Date | March 31, 2026 |
| Payment Date | April 24, 2026 |
| Previous Dividend | $0.50 per share |
Fourth Quarter Financial Results
For the quarter ended December 31, 2025, Morgan Stanley Direct Lending Fund reported net investment income of $42.4 million, or $0.49 per share, compared to $43.7 million, or $0.50 per share, in the third quarter. Net asset value declined to $20.26 per share from $20.41 as of September 30, 2025.
The company's debt-to-equity ratio increased to 1.20 times as of December 31, 2025, up from 1.17 times at the end of the prior quarter. Total debt outstanding stood at $2.09 billion on a principal basis, while net assets totaled $1.75 billion.
During the fourth quarter, the fund made new investment commitments of $146.5 million and funded $163.8 million, while sales and repayments reached $162.6 million. The portfolio's fair value was $3.77 billion as of year-end, down slightly from $3.78 billion three months earlier.
Share Repurchase Activity
Morgan Stanley Direct Lending Fund repurchased 534,908 shares at an average price of $17.03 per share during the fourth quarter. On February 26, 2026, the board authorized a new $100 million share repurchase program over 24 months, replacing the 2025 program.
Joint Venture Launch
Following the quarter's close, the company launched Capstone Lending LLC, a joint venture with an institutional partner. Morgan Stanley Direct Lending Fund and its partner agreed to contribute up to $200 million and $50 million, respectively. Approximately 47% of each party's capital commitment was called following the initial February 2026 contribution.
The fund is externally managed by MS Capital Partners Adviser Inc., an indirect wholly owned subsidiary of Morgan Stanley. Morgan Stanley Direct Lending Fund is regulated as a business development company under the Investment Company Act of 1940.