Morgan Stanley Direct Lending Fund (NYSE: MSDL)

Morgan Stanley Direct Lending Fund is a non-diversified externally managed specialty finance company focused on lending to middle-market companies. The company has elected to be regulated as a business development company under the Investment Company Act of 1940 and intends to qualify annually as a regulated investment company for U. S. federal income tax purposes. Its investment objective is to achieve attractive risk-adjusted returns via current income and to a lesser extent capital appreciation by investing primarily in directly originated senior secured term loans issued by U. S. middle-market companies in which private equity sponsors have a controlling equity stake.

The company generates revenue primarily through interest income from its debt investments. Additional income is derived from dividends or distributions on direct equity investments, capital gains on the sale of loans and securities, and various loan origination and other fees including commitment, origination, amendment, structuring, syndication, due diligence, managerial assistance, and consulting fees.

The company operates through the following segments: Direct Lending and Opportunistic Credit.

• The Direct Lending strategy includes investments in directly originated first lien senior secured and second lien senior secured loans, mezzanine notes, unsecured debt, preferred stock, and common stock issued by U. S. middle-market companies owned by private equity firms, typically with annual EBITDA of $200 million. As of February 1, 2026, this segment managed approximately $23.0 billion in committed capital.

• The Opportunistic Credit strategy focuses on complex assets, unusual credit situations, or companies experiencing difficulties in sourcing capital, including purchases of public or private securities at deep discounts to fundamental value. Investments are made primarily in first lien senior secured and second lien senior secured loans, mezzanine notes, unsecured debt, preferred stock, and common stock issued by U. S. middle-market companies, typically with annual EBITDA ranging from $10 million to $100+ million. As of February 1, 2026, this segment managed approximately $3.2 billion in committed capital.

Morgan Stanley Direct Lending Fund operates in the middle-market direct lending industry and competes with public and private investment funds, other business development companies, commercial finance companies, private equity, mezzanine and hedge funds, issuers of collateralized loan obligations, and structured loan funds. Its competitive advantages stem from the Adviser’s longstanding relationships with middle-market private equity firms, access to Morgan Stanley’s global resources, a rigorous fundamentals-driven investment process, an experienced investment team and committee, and an efficient expense model relative to peers.

The company serves U. S. middle-market companies across 35 industries as of December 31, 2025, with portfolio companies typically backed by private equity sponsors and exhibiting strong management teams, defensible market positions, high barriers to entry, strong free cash flow, and sustainable business models. No specific customer names are disclosed in the filing.