Morgan Stanley Direct Lending Fund (MSDL) — Dividend Yield, NAV & Valuation Analysis

MSDL · NASDAQ

$15.6 Stock Price
11.6% Dividend Yield
$0.9B Market Cap
$19.8 NAV
-21.2% Premium / Discount
Quarterly Dividend Freq.
$1.81 Div. per Share/yr

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Overview

Morgan Stanley Direct Lending Fund is an externally managed BDC advised by Morgan Stanley Senior Funding, Inc., providing senior secured first lien and unitranche loans to U.S. middle-market companies. MSDL leverages the global platform of Morgan Stanley Investment Management Private Credit platform and predominately originates floating-rate first lien instruments to borrowers with EBITDA between $5 million and $50 million.

Key Metrics

MetricValue
1-Year Total Return10.1%
3-Year Total Return21.4%
5-Year Total Return27.2%
Expense Ratio8.7%
Leverage Ratio1.18x
Portfolio Companies130
Total Assets$1.7B

Discount / Premium to NAV

Stock Price$15.6
NAV per Share$19.8
Premium / (Discount) to NAV-21.2%
Implied per-share NAV gap$4.2

The premium / discount to NAV compares the current stock price to the per-share net asset value of Morgan Stanley Direct Lending Fund's investment portfolio. A negative reading (a discount) means the market is pricing MSDL below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Morgan Stanley Direct Lending Fund currently trades at a -21.2% discount to NAV.

Investment Strategy

Morgan Stanley Direct Lending Fund focuses on senior secured loans, unitranche debt, mezzanine debt in the technology, healthcare, business services, industrials sectors. The company targets lower middle-market companies and maintains a portfolio of 130 investments totaling $1.7B in assets.

Management

CEO: Robert S. | Employees: 50

Suitability

MSDL is suitable for income-focused investors seeking quarterly dividend income with a 11.6% yield. The BDC's focus on senior secured loans provides defensive portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.