Morgan Stanley Direct Lending Fund (MSDL) Q3 2025 earnings summary

Executive summary

• Net investment income for Q3 2025 was $43.7 million, or $0.50 per share, unchanged from the previous quarter.

• Net asset value per share decreased to $20.41 from $20.59 sequentially.

• Board declared a regular dividend/distribution of $0.50 per share for Q4 2025, payable in January 2026.

• Closed inaugural CLO with $401 million principal at a blended cost of SOFR +1.70%.

• Portfolio consisted of 218 companies, with 99.6% of debt investments at floating rates.

Financial highlights

• Total investment income for Q3 2025 was $99.7 million, up slightly from $99.5 million in Q2 2025.

• Net realized and unrealized losses per share were $(0.18) for Q3 2025.

• Net assets totaled $1.77 billion as of September 30, 2025.

• Debt-to-equity ratio increased to 1.17x from 1.15x sequentially.

• Earnings per share were $0.32 for Q3 2025.

Outlook and guidance

• Board declared a $0.50 per share distribution payable in January 2026.

• Management expects adequate liquidity for near-term operations, with $71.7 million in unrestricted cash and $1.4 billion in available credit as of September 30, 2025.

• Forward-looking statements caution on risks and uncertainties, including market and regulatory changes.