Morgan Stanley Direct Lending Fund Announces Fee Reductions and New Supplemental Dividend Structure
Morgan Stanley Direct Lending Fund (MSDL) has announced a significant restructuring of its fee framework scheduled to take effect on January 1, 2027. The fund will reduce its management fee from 100 basis points to 75 basis points on assets and lower its incentive fee from 17.5% to 15%. In addition to the fee reductions, MSDL is introducing a new supplemental dividend policy. Under this structure, the fund will distribute 50% of excess Net Investment Income (NII) to shareholders. This move aims to enhance shareholder returns while adjusting the cost structure for investors.
Topics: direct lending fund management incentive fee reduction management fee reduction