Morgan Stanley Direct Lending Fund · NYSE:MSDL
Morgan Stanley Direct Lending Fund — Q3 2024 Earnings Presentation
17 slides from Morgan Stanley Direct Lending Fund's earnings presentation, Nov 8, 2024
Slide 1: Morgan Stanley Direct Lending Fund Third Quarter 2024 Earnings Presentation
Morgan Stanley Direct Lending Fund (NYSE:MSDL) Third 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) 9.6%/11.5% 96% 99.6% 95% 0.75%/15% Annualized Regular / Total Non-Cyclical Fee Structure / First Lien Investments (3) Floating Rate Loans (3)(4) Dividend Yield (2) Investments (5) Net of Waiver (6) $6.2B $1.8B 10.9% 40% 0.99x Cumula
Slide 6: Investment Strategy Built to Deliver Strong Risk-Adjusted Returns
Investment Strategy Built to Deliver Strong Risk-Adjusted Returns INVESTMENT CRITERIA (3) 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 Diver
Slide 7: Quarterly Highlights
Quarterly Highlights • Net investment income per share of $0.66 in Q3’24, an increase from $0.63 in Q2’24 Financial • Earnings per share was $0.60 in Q3’24, a decrease from $0.66 in Q2’24 Results • Net asset value per share was $20.83 as of Q3’24, flat compared to Q2’24 • Q3’24 dividends per share o
Slide 8: Selected Financial Highlights and Portfolio Information
Selected Financial Highlights and Portfolio Information (Dollars in thousands, except per share data) Q3'23 Q4'23 Q1’24 Q2’24 Q3’24 Net investment income per share $0.70 $0.67 $0.63 $0.63 $0.66 Net realized and unrealized gain (loss) per share (1) $0.32 $0.03 ($0.05) $0.03 ($0.06) IPO offering & und
Slide 9: Non-Cyclical Industries and Low Borrower Concentration
Non-Cyclical Industries and Low Borrower Concentration INDUSTRY CONCENTRATION (1) BORROWER CONCENTRATION (1)(4) VRC Companies Turbo Buyer 2.0% 2.0% Others (23 Industries) 26.5% World Insurance Software GS Acquisition 1.8% 17.7% 2.1% Patriot Growth Automobile 1.7% Components 3.1% MRI Software 1.6% Au
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 $3,123 $3,194 $3,514 $3,640 $3,293 2% 4% 2% 1% 3% 2% 2% 2% <1% 4% 4% 100% $455 100% 100% <1%
Slide 11: Credit Quality of Investments
Credit Quality of Investments • As of September 30, 2024, 98.3% of the portfolio, at fair value, had a risk rating of two or better (1) • As of September 30, 2024, certain investments in two portfolio companies were on non-accrual status, representing $8.1 million, or approximately 0.2% of the portf
Slide 12: Quarterly Operating Results
Quarterly Operating Results (Dollar in thousands, except per share data) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Investment income: Interest and dividend income $92,682 $98,896 $97,840 $102,568 $107,949 Other income 1,769 1,859 1,261 1,620 1,803 Total investment income $94,451 $100,755 $99,101 $104,188 $109,7
Slide 13: Quarterly Balance Sheet
Quarterly Balance Sheet (Dollar in thousands, except per share data) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Assets Investments at fair value $3,123,450 $3,193,561 $3,293,205 $3,514,286 $3,640,324 Cash and cash equivalents 88,085 69,705 64,762 94,966 90,428 Interest receivable 26,178 28,884 29,341 27,594 31,7
Slide 14: NAV per Share Bridge for the Quarter Ended September 30, 2024
NAV per Share Bridge for the Quarter Ended September 30, 2024 $0.66 $20.83 $20.83 ($0.50) ($0.10) ($0.06) Q2'24 NAV Net Investment Q3'24 Regular Q3'24 Special Realized & Unrealized Q3'24 NAV Income Dividend Dividend Gain (Loss) (1) Notes: June 30, 2024 NAV is based on ending shares outstanding as of
Slide 15: Conservative Balance Sheet Strategy
Conservative Balance Sheet Strategy • As of September 30, 2024, the Company had total liquidity of $1,191.1 million, including unrestricted cash and cash equivalents of $88.4 million and undrawn committed debt capacity of $1,102.7 million (1)(2) Debt Commitment Principal Outstanding Available Amount
Slide 16: Dividend History
Dividend History (1) $0.07 $0.10 $0.10 $0.10 $0.18 $0.11 $0.56 $0.49 $0.48 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $0.50 $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 Q3’24 Regular Dividend Supplement
Slide 17: Investor Relations
Investor Relations msdl@morganstanley.com
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