Morgan Stanley Direct Lending Fund · NYSE:MSDL
Morgan Stanley Direct Lending Fund — Q2 2024 Earnings Presentation
17 slides from Morgan Stanley Direct Lending Fund's earnings presentation, Aug 9, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
Morgan Stanley Direct Lending Fund (NYSE:MSDL) Second Quarter 2024 Earnings Presentation
Slide 2: Disclaimer and Forward-Looking Statement
Disclaimer and Forward-Looking Statement This presentation (the “Presentation”) has been prepared by Morgan Stanley Direct Lending Fund (together with its consolidated subsidiaries, “we,” “us,” “our,” “MSDL” or the “Company”). This Presentation is not intended to be taken by, and should not be taken
Slide 3: Disclaimer and Forward-Looking Statement (Cont'd)
Disclaimer and Forward-Looking Statement (Cont’d) Information throughout the Presentation provided by sources other than the Company (including information relating to portfolio companies) has not been independently verified and, accordingly, the Company makes no representation or warranty in respec
Slide 4: Compelling Investment Proposition
Compelling Investment Proposition Differentiated Origination and Investing Model, Complemented by Morgan Stanley (1) Defensive Portfolio With Focus on Senior Secured, First Lien & Floating Rate Loans Rigorous Investment Process & Oversight Strong Financial Performance & Conservative Financing Strate
Slide 5: Morgan Stanley Direct Lending Fund Overview
Morgan Stanley Direct Lending Fund Overview MSDL KEY STATISTICS (1) 9.7% 95% 99.6% 94% 0.75%/15% Annualized Regular Non-Cyclical Fee Structure / First Lien Investments (3) Floating Rate Loans (3)(4) Dividend Yield (2) Investments (5) Net of Waiver (6) $5.7B $2.0B 10.9% 40% 0.90x Cumulative Gross Inv
Slide 6: Investment Strategy Built to Deliver Strong Risk-Adjusted Returns
Investment Strategy Built to Deliver Strong Risk-Adjusted Returns INVESTMENT CRITERIA Experienced mgmt. team with successful track records Market Segment U.S. Middle Market (1) Defensible, leading market positions Low technology or market risks Asset Focus First Lien, Floating Rate Diversifi
Slide 7: Quarterly Highlights
Quarterly Highlights • Net investment income per share of $0.63 in Q2’24, unchanged from $0.63 in Q1’24 Financial • Earnings per share was $0.66 in Q2’24, an increase from $0.59 in Q1’24 Results • Net asset value per share was $20.83 as of Q2’24, an increase from $20.67 as of Q1’24 • The Board of Di
Slide 8: Selected Financial Highlights and Portfolio Information
Selected Financial Highlights and Portfolio Information (Dollars in thousands, except per share data) Q2'23 Q3'23 Q4'23 Q1’24 Q2’24 Net investment income per share $0.67 $0.70 $0.67 $0.63 $0.63 Net realized and unrealized gain (loss) per share (1) $0.12 $0.32 $0.03 ($0.05) $0.03 IPO offering & under
Slide 9: Non-Cyclical Industries and Low Borrower Concentration
Non-Cyclical Industries and Low Borrower Concentration INDUSTRY CONCENTRATION (1) BORROWER CONCENTRATION (1)(4) Foundation Risk Partners Professional Automobile Components 1.5% Services 3.2% MRI Software 1.7% High Street Buyer 3.7% Automobiles 1.4% Patriot Growth Real Estate Management 3.1% 1.8% Bri
Slide 10: Focused on Floating Rate, First Lien Assets
Focused on Floating Rate, First Lien Assets ASSET MIX BY CAPITAL DEPLOYMENT ASSET MIX AT PERIOD END (by Gross Commitments, Dollar Amounts in Millions) (by Fair Market Value, Dollar Amounts in Millions) $674 $2,984 $3,123 $3,194 $3,293 $3,514 1% 2% 4% 2% 2% 4% 1% 3% 2% 4% 4% 100% 100% 100% 99% 94% 94
Slide 11: Credit Quality of Investments
Credit Quality of Investments • As of June 30, 2024, 98.1% of the portfolio, at fair value, had a risk rating of two or better (1) • As of June 30, 2024, certain investments in two portfolio companies remained on non-accrual status, representing $12.4 million, or approximately 0.3% of the portfolio,
Slide 12: Quarterly Operating Results
Quarterly Operating Results (Dollar in thousands, except per share data) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Investment income: Interest and dividend income $87,699 $92,682 $98,896 $97,840 $102,568 Other income 1,195 1,769 1,859 1,261 1,620 Total investment income $88,894 $94,451 $100,755 $99,101 $104,188
Slide 13: Quarterly Balance Sheet
Quarterly Balance Sheet (Dollar in thousands, except per share data) Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Assets Investments at fair value $2,983,727 $3,123,450 $3,193,561 $3,293,205 $3,514,286 Cash and cash equivalents 52,850 88,085 69,705 64,762 94,966 Interest receivable 23,522 26,178 28,884 29,341 27,5
Slide 14: NAV per Share Bridge for the Quarter Ended June 30, 2024
NAV per Share Bridge for the Quarter Ended June 30, 2024 $0.63 $0.03 $20.83 $20.67 ($0.50) Q1'24 NAV Net Investment Q2'24 Regular Realized & Unrealized Q2'24 NAV Income Dividend Gain (Loss) (1) Notes: March 31, 2024 NAV is based on ending shares outstanding as of such date. June 30, 2024, NAV is bas
Slide 15: Conservative Balance Sheet Strategy
Conservative Balance Sheet Strategy • As of June 30, 2024, the Company had total liquidity of $1,363.4 million, including unrestricted cash and cash equivalents of $93.0 million and undrawn committed debt capacity of $1,270.4 million (1)(2) Debt Commitment Principal Outstanding Available Amount Inte
Slide 16: Dividend History
Dividend History (1) $0.10 $0.10 $0.07 $0.18 $0.11 $0.56 $0.49 $0.48 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.45 $0.46 $0.47 $0.47 $0.43 $0.40 $0.29 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Regular Dividend Supplemental / Special Divid
Slide 17: Investor Relations
Investor Relations msdl@morganstanley.com
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