Morgan Stanley has limited redemptions at its North Haven Private Income Fund (PIF) after investors sought to withdraw nearly 11% of outstanding shares, according to a regulatory filing. The fund returned roughly $169 million, fulfilling about 45.8% of tender requests for the quarter.
| Photo Credit:
Dado Ruvic
Wall Street banking giant Morgan
Stanley has limited redemptions at one of its private
credit funds after investors sought to withdraw almost 11% of
shares outstanding, a regulatory filing showed on Wednesday.
A flurry of bad news following several credit issues in
recent months has drawn fresh scrutiny to the roughly $2
trillion private credit market, as investors question the health
of loan portfolios and the resilience of borrowers in a higher
interest rate environment.
Morgan Stanley Private Credit said in a letter to investors
that the North Haven Private Income Fund (PIF) returned roughly
$169 million or about 45.8% of investors’ tender request for the
quarter.
The Wall Street powerhouse signaled that the private credit
industry faces several challenges, including uncertainty around
an M&A recovery, speculation about credit deterioration and a
contraction in asset yields.
Morgan Stanley said the PIF was invested in 312 borrowers
across 44 industries as of January 31, and that credit
fundamentals at the fund remain broadly stable.
“As marketed and consistent with the disclosure in our
private placement memorandum, we will be fulfilling tender
requests for 5% of units outstanding, as of December 31,” the
bank’s investment management arm said in the letter.
Morgan Stanley added that limiting withdrawals will help
avoid asset sales during “periods of market dislocation” and
maximize risk-adjusted returns for investors over time.
“Dispersion between stronger and weaker credit is
increasing,” it said.
PRIVATE CREDIT FEARS GROW
Fears that AI could erode the earnings power of software
companies and weaken their ability to repay loans are rippling
through private credit, a key lender to the technology sector,
prompting investors to reassess exposure, redemption risks and
fundraising prospects, analysts have said.
Concerns have been compounded by renewed troubles at Blue
Owl over asset sales, triggering a sharp selloff in
shares of alternative asset managers with a footprint in the
private credit market.
Meanwhile, JPMorgan Chase has reduced the value of
some loans to private credit funds after reviewing the impact
of market turmoil around software companies, two people familiar
with the situation told Reuters on Wednesday.
Analysts still point to JPMorgan CEO Jamie Dimon’s warning
in October of “more cockroaches” lurking in the credit market as
a potential source of investor anxiety, even though the issues
so far do not appear to be systemic.
Earlier this month, BlackRock, the world’s largest
asset manager, disclosed that it has limited withdrawals from a
flagship debt fund after a surge in redemption requests.
Alternative asset manager Blackstone on March 2 also
disclosed that its private credit fund, known as BCRED, faced a
surge in withdrawals in the first quarter.
Published on March 12, 2026
