Morgan Stanley’s North Haven Private Income Fund Prorates Q2 Tender at 43% as Demand Reaches 11.6%

North Haven Private Income Fund LLC, the $7 billion private business development company managed by Morgan Stanley Private Credit, will repurchase 5% of its outstanding units in its second-quarter tender offer after investors submitted redemption requests covering approximately 11.6% of units outstanding – more than double the quarterly cap.

With requests running at roughly 2.3x the cap, the fund will fulfill approximately 43% of each investor’s request on a prorated basis. The repurchase price will be set at the fund’s net asset value per unit as of June 30, 2026. Based on the fund’s estimated NAV of approximately $3.26 billion as of May 31, a 5% repurchase would represent roughly $163 million at current valuations, pending the June 30 quarter-end close.

The fund declared two distributions on June 22, payable July 6 to unitholders of record as of June 30: a regular distribution of $0.1208 per unit and a special distribution of $0.0205 per unit. The fund did not provide an explanation for the special distribution in its filings.

North Haven Private Income Fund had investments in 301 portfolio companies across 45 industries as of May 31, with aggregate par value of approximately $7.05 billion. The portfolio is predominantly first lien – 96.8% of par value – and nearly entirely floating rate, at 99.9% of debt investments. The fund had approximately $3.17 billion of debt outstanding as of May 31, a leverage ratio of roughly 1:1 against its $3.26 billion estimated NAV. New investment commitments during May totaled approximately $24 million, all in private senior secured loans.

Software is the fund’s largest industry concentration at 22.7% of par value, followed by insurance services at 9.2% and commercial services and supplies at 8.6%. The 10 largest portfolio company positions collectively represent 13% of par value, with Integrity Marketing Acquisition LLC the largest at $113.2 million, or 1.6%.

North Haven Private Income Fund A LLC, a companion vehicle that issued an investor letter the same day, reported repurchase requests representing approximately 7.2% of units outstanding, with the fund fulfilling approximately 69.5% of each investor’s request at the 5% cap. The companion fund reported aggregate par value of approximately $749.7 million across 185 portfolio companies as of May 31.

The Q2 2026 results add Morgan Stanley Private Credit to a growing list of managers facing sustained redemption pressure this quarter. Ares Strategic Income Fund disclosed Q2 demand of 14.4% of shares outstanding – nearly three times its quarterly cap – earlier this week. Blackstone Private Credit Fund reported 10% demand in Q2 after upsizing its Q1 repurchase to 7% to avoid proration. Apollo Debt Solutions BDC disclosed Q2 demand of approximately 16.8%. Oaktree Strategic Credit Fund was a notable exception, reporting Q2 demand of 4.5% and honoring all requests in full.

North Haven Private Income Fund LLC is managed by Morgan Stanley Private Credit, a unit of Morgan Stanley. The fund has elected to be regulated as a business development company under the Investment Company Act of 1940. Units are sold to accredited investors under Regulation D.

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