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Morgan Stanley Direct Lending Fund Raises $103M for IPO

Morgan Stanley Direct Lending Fund Raises $103M for IPO

Morgan Stanley Direct Lending Fund (MSDL), a business development company managed by MS Capital Partners Adviser Inc., announced it priced its initial public offering of 5 million shares of its common stock at $20.67 per share, raising $103.35 million.

MSDL’s shares have begun trading on The New York Stock Exchange as of Wednesday. MSDL also granted the underwriters an option to purchase up to an additional 750,000 shares to cover overallotments, if any.

The shares are expected to be delivered on or about January 26, 2024.

The fund invests mostly in riskier bonds, such as those issued by middle-market corporations or private equity groups seeking to finance acquisitions. MSDL intends to use the funds to repay a portion of its debt.

Morgan Stanley, JP Morgan and Wells Fargo are among the underwriters for the offering.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.