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MSDLMorgan Stanley Direct Lending Fund
$15.38$1.3B
Overview & Verdict
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MSDL logoMorgan Stanley Direct Lending Fund(MSDL)Earnings, Financials & Key Ratios

MSDL•NYSE
$15.38
11.0× P/E·Price updated Jul 6, 2026
SectorFinancial ServicesIndustryFinancial ConglomeratesSub-IndustryPrivate credit and direct lending
AboutMorgan Stanley Direct Lending Fund is a business development and finance company, which engages in lending to middle-market companies. It invests in directly originated senior secured term loans including first lien senior secured term loans and second lien senior secured term loans. The company was founded on May 30, 2019 and is headquartered in New York, NY.Show more
  • EBITDA$258M+18.5%
  • Net Income$122M-43.4%
  • EPS (Diluted)1.40-42.4%
  • Gross Margin81.03%+28.6%
  • EBITDA Margin66.73%+1.8%
  • Operating Margin66.69%+1.7%
  • Net Margin31.55%-51.3%
  • ROE6.8%-43.8%

MSDL Price & Volume

Morgan Stanley Direct Lending Fund (MSDL) stock price & volume — 10-year historical chart

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Earnings Volatility Challenges Sustainable Dividend Yield Profile

Investment Thesis • Updated 2026Q1

VerdictNegative
Growth:Mixed
Profitability:Strained
Financial:Adequate
Cash Flow:Mixed
Primary Risk:Portfolio Valuation Volatility

Key Thesis Takeaways

  • MSDL faces significant headwinds as its net income swung to a $4.5 million loss in 2026Q1, complicating the sustainability of its 13.7% dividend yield.
  • While the fund has expanded its asset base to $3.8 billion, the concurrent rise in the debt-to-equity ratio to 1.21 suggests increasing financial risk.
  • Investors should monitor the fund's ability to stabilize its erratic operating margins, which plummeted from 71.4% in 2025Q4 to 34.9% in 2026Q1, before committing capital.

Verdict Logic

the erosion of retained earnings to a negative $62.5 million and the reliance on volatile valuation adjustments to support a 13.7% dividend yield present significant long-term capital preservation risks.

MSDL Growth Metrics

Morgan Stanley Direct Lending Fund (MSDL) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years-
5 Years75.16%
3 Years56.89%
TTM-

Profit CAGR

10 Years-
5 Years46.17%
3 Years36%
TTM-54.58%

EPS CAGR

10 Years-
5 Years46.14%
3 Years36.54%
TTM-53.79%

Return on Capital

10 Years5.05%
5 Years5.49%
3 Years6.76%
Last Year6.59%

MSDL Recent Earnings

Morgan Stanley Direct Lending Fund (MSDL) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 5/12 qtrs (50%)●Beat Revenue 1/12 qtrs (10%)
Q2 2026Latest
May 7, 2026
Metric
Actual
Est
EPS
$0.47+4.4%
$0.45
Rev
$89M-3.1%
$92M
Q1 2026
Feb 26, 2026
Metric
Actual
Est
EPS
$0.49+0.0%
$0.49
Rev
$97M-1.0%
$98M
Q4 2025
Nov 6, 2025
Metric
Actual
Est
EPS
$0.50+2.0%
$0.49
Rev
$65M-33.5%
$97M
Q3 2025
Aug 7, 2025
Metric
Actual
Est
EPS
$0.50-3.8%
$0.52
Rev
$100M-0.5%
$100M
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestMay 7, 2026
$0.47vs $0.45+4.4%
$89Mvs $92M-3.1%
Q1 2026Feb 26, 2026
$0.49vs $0.49+0.0%
$97Mvs $98M-1.0%
Q4 2025Nov 6, 2025
$0.50vs $0.49+2.0%
$65Mvs $97M-33.5%
Q3 2025Aug 7, 2025
$0.50vs $0.52-3.8%
$100Mvs $100M-0.5%
Based on last 12 quarters of dataView full earnings history →

Latest MSDL News

Recent stock market news and headlines for Morgan Stanley Direct Lending Fund (MSDL)

Business Wire·15h ago
Morgan Stanley Direct Lending Fund Announces Second Quarter 2026 Earnings Release and Conference Call

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) ("MSDL”), a business development company externally managed by MS Capital Partners Adviser Inc., today announced it will release its financial results for the second quarter ended June 30, 2026, on Thursday, August 6, 2026, after the market closes. MSDL will host a conference call at 10:00 am ET on Friday, August 7, 2026, to review its financial results and conduct a question-and-answer session. Conference Call Informati.

Business Wire·6 days ago
KBRA Assigns Rating to Morgan Stanley Direct Lending Fund's $350 Million Senior Unsecured Notes

NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns a rating of BBB to Morgan Stanley Direct Lending Fund's (NYSE: MSDL or "the company") $350 million, 6.10% senior unsecured notes due July 15, 2031. The rating Outlook is Stable. Key Credit Considerations The rating and Outlook are supported by MSDL's strong ties to the ~$1.9 trillion assets under management and/or supervision of Morgan Stanley Asset Management. The company benefits from investment banking, global capital markets, investment management, an.

Business Wire·Jun 29, 2026
Morgan Stanley Direct Lending Fund Prices Public Offering of $350.0 Million 6.100% Notes Due 2031

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”) today announced that it has priced an offering of $350.0 million aggregate principal amount of 6.100% notes due 2031 (the “Notes”). The Notes will mature on July 15, 2031 and may be redeemed in whole or in part at the Company's option at any time at par plus a “make-whole” premium, provided that the Notes may be redeemed at par one month prior to their maturity. The offering is expected to close.

Seeking Alpha·Jun 17, 2026
Morgan Stanley Direct Lending: Fat Dividend Yield And Large Discount To NAV

Morgan Stanley Direct Lending trades at a 22% discount to NAV and is paying out an 11.7% dividend yield that's fully covered by NII. MSDL faces negative net fundings, yield compression, and a shrinking portfolio, raising the risk of further dividend cuts. Short interest in MSDL has reached record highs amid negative sentiment and large redemption requests from private credit funds.

Peers Comparison

Key metrics vs top competitors for Morgan Stanley Direct Lending Fund (MSDL)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
MSDL logoMSDLMorgan Stanley Direct Lending FundCurrent
$15.38$1.3B10.9916.38%31.55%6.8%13.71%
ARCC logoARCCAres Capital Corporation
$18.56$13.33B9.9832.87%43.69%8.11%—
FSCO logoFSCOFS Credit Opportunities Corp.
$4.94$999.21M6.50-18.64%———
OBDC logoOBDCBlue Owl Capital Corporation
$10.92$5.42B8.8152.55%27.51%4.83%—
GBDC logoGBDCGolub Capital BDC, Inc.
$12.87$3.35B9.0642.5%26.91%5.24%—
TPVG logoTPVGTriplePoint Venture Growth BDC Corp.
$4.79$194.47M3.9336.55%-19.55%-3.39%—

Compare MSDL vs Peers

Morgan Stanley Direct Lending Fund (MSDL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs ARCC

Most directly comparable listed peer for MSDL.

Scale Benchmark

vs MS

Larger-name benchmark to compare MSDL against a more recognizable public peer.

Peer Set

Compare Top 5

vs ARCC, FSCO, OBDC, GBDC

MSDL SEC Filings & Documents

Morgan Stanley Direct Lending Fund (MSDL) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

May 7, 2026·SEC

Material company update

Apr 27, 2026·SEC

Material company update

Apr 6, 2026·SEC

10-K Annual Reports

3
FY 2026

Feb 26, 2026·SEC

FY 2025

Feb 27, 2025·SEC

FY 2024

Mar 1, 2024·SEC

10-Q Quarterly Reports

6
FY 2026

May 7, 2026·SEC

FY 2025

Nov 6, 2025·SEC

FY 2025

Aug 7, 2025·SEC

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MSDL Frequently Asked Questions

Morgan Stanley Direct Lending Fund (MSDL) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Morgan Stanley Direct Lending Fund's revenue?

Morgan Stanley Direct Lending Fund (MSDL) reported $299.7M in revenue for fiscal year 2025.

How fast is Morgan Stanley Direct Lending Fund growing?

Morgan Stanley Direct Lending Fund (MSDL) grew revenue by 16.4% over the past year. This is strong growth.

Is MSDL profitable?

Yes, Morgan Stanley Direct Lending Fund (MSDL) is profitable, generating $87.9M in net income for fiscal year 2025 (31.5% net margin).

Dividend & Returns
Does MSDL pay dividends?

Yes, Morgan Stanley Direct Lending Fund (MSDL) pays a dividend with a yield of 13.71%. This makes it attractive for income-focused investors.

What is MSDL's return on equity?

Morgan Stanley Direct Lending Fund (MSDL) has a return on equity (ROE) of 6.8%. This is below average, suggesting room for improvement.

What is Morgan Stanley Direct Lending Fund's free cash flow?

Morgan Stanley Direct Lending Fund (MSDL) generated $165.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in MSDL back in 2020?

Total return calculator · dividends reinvested · 6+ years of data

See returns →