Morgan Stanley Direct Lending Fund Q2 net investment income dips on non-accrual positions

Morgan Stanley Direct Lending Fund

06/08/2026 21:36

Overview
US specialty finance firm's Q2 net investment income per share fell slightly from prior quarter
Total investment income declined modestly, mainly due to positions placed on non-accrual
Company repurchased 831,486 shares at an average price of $15.06 per share in Q2

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
NON-ACCRUAL POSITIONS - Co said modest decline in investment income was mainly due to more portfolio positions placed on non-accrual
HIGHER EXPENSES - Net expenses rose due to increased interest, financing costs and incentive fees
CAPSTONE JV IMPACT - Capstone JV ramp-up partially offset decline in investment income

Company press release: ID:nBw8G3lLJa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.09
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Morgan Stanley Direct Lending Fund is $16.00, about 6.1% above its August 5 closing price of $15.08

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)