Morgan Stanley limits withdrawals from its $7 billion private credit fund again

Morgan Stanley announced a second consecutive quarter of redemption limits on its North Haven Private Income Fund, which holds close to $7 billion in private credit assets. Investors asked to pull 11.4% of their holdings, but the firm capped withdrawals at 5%, citing a backlog of redemption requests across the market. The fund expects to complete repurchases totaling roughly $479 million by the end of September.

Nearly two-thirds of the demand originated from clients whose prior withdrawal attempts were partially denied in earlier repurchase rounds. The move mirrors actions by peers such as Blackstone and BlackRock, which are also tightening cash-out options amid a $1.8 trillion private credit market still seeing elevated exit pressure. A smaller Morgan Stanley fund with under $1 billion in assets similarly limited redemptions after receiving requests for about 7% of its shares.