Morgan Stanley restricts redemptions of a private credit fund.

Morgan Stanley has restricted the redemption amount of one of its private credit funds, returning less than half of the amount investors wished to cash out. A letter to clients showed that the North Haven Private Income Fund, with a total investment of nearly $8 billion, returned about $169 million, which accounted for 46% of the redemption requests for the first quarter. Investors requested the redemption of about 11% of the fund's outstanding shares, but the fund limited the quarterly redemption amount to 5%. "The design of the fund's structure aims to balance providing investors with periodic redemption liquidity opportunities with the limited liquidity of the private credit assets in which the fund invests," Morgan Stanley stated in the letter, explaining that limiting the quarterly redemption ratio to 5% "supports portfolio optimization and aligns with the goal of maximizing long-term risk-adjusted returns for investors."