Morgan Stanley private credit fund redemptions remain elevated in third quarter

Sept 18 (Reuters) — Withdrawal requests at a Morgan Stanley private credit fund remained elevated in the third-quarter repurchase offer, according to a regulatory filing on Friday, as the investment vehicle works through its redemption queue. Investors in Morgan Stanley's North Haven Private Income Fund (PIF) sought to withdraw 11.4% of shares in the latest tender offer, a slight dip from the 11.6% in the prior quarter. The fund will repurchase 5% of shares, the customary threshold for such vehicles. Wealthy investors have pulled money from non-traded private credit funds in recent months over concerns about lending standards and whether software companies, a key borrower base for direct lenders, can withstand disruption from artificial intelligence. Redemption pressure, however, may be starting to ease as asset managers work through a backlog of unfulfilled withdrawal requests. The fund said nearly two-thirds of repurchase requests for the latest quarter came from investors who were not allowed to fully cash out in the prior two repurchase offers. "We believe the composition and stabilization of request activity may indicate the durability of the company’s investor base. Upon comp