Morgan Stanley Direct Lending Fund · NYSE:MSDL
Morgan Stanley Direct Lending Fund — Q2 2026 Earnings Presentation
18 slides from Morgan Stanley Direct Lending Fund's earnings presentation, Aug 7, 2026
Slide 1: Second Quarter 2026 Earnings Presentation
Morgan Stanley Direct Lending Fund (NYSE:MSDL) Second Quarter 2026 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 ta
Slide 3: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights Net investment income per share of $0.45 in Q2’26, as compared to $0.47 in Q1’26 FINANCIAL Earnings per share was $0.09 in Q2’26, as compared to ($0.05) in Q1’26 RESULTS NAV per share was $19.50 as of Q2’26, as compared to $19.81 in Q1’26 Q2’26 regular dividend
Slide 4: Overview of Morgan Stanley Direct Lending Fund (NYSE:MSDL)
Overview of Morgan Stanley Direct Lending Fund (NYSE:MSDL) 9.1% ANNUALIZED DIVIDEND YIELD (4) DIFFERENTIATED PLATFORM Scaled private credit business, leveraging the broader Morgan Stanley platform (1) DEFENSIVE PORTFOLIO Primarily floating rate, first lien loans to borrowers in non-cyclical industri
Slide 5: Supported by Morgan Stanley's Global Footprint
Supported by Morgan Stanley’s Global Footprint Morgan Stanley Investment Management, a Division of Morgan Stanley, Offers a Wide Range of Investment Solutions to Investors Around the World MSIM BY THE NUMBERS $2.0Tn MORGAN STANLEY MORGAN STANLEY WEALTH INSTITUTIONAL SECURITIES TOTAL AUM (1) INVESTME
Slide 6: Investment Strategy Built to Deliver Strong Risk-Adjusted Returns
Investment Strategy Built to Deliver Strong Risk-Adjusted Returns PILLARS OF OUR INVESTMENT STRATEGY LONG-TERM CREDIT PRESERVATION RISK PERFORMANCE OF CAPITAL MITIGATION FOCUSED INVESTMENT CRITERIA BORROWER CHARACTERISTICS (3) Strong management teams U.S. Sponsor-Backed Middle MARKET SEGMENT Mark
Slide 7: Morgan Stanley Direct Lending Fund Key Statistics
Morgan Stanley Direct Lending Fund Key Statistics FUND STATISTICS $7.2Bn $1.3Bn 11.5% 1.0%/17.5% 1.21x CUMULATIVE GROSS MARKET CAP (1) MORGAN STANLEY FEE STRUCTURE (3) DEBT-TO-EQUITY INVESTMENT OWNERSHIP (2) COMMITMENTS BORROWER STATISTICS $90.3MM 39% 1.8x 5.6% 2.9% MEDIAN EBITDA (4) WEIGHTED AVERAG
Slide 8: Non-Cyclical Industries and Low Borrower Concentration
Non-Cyclical Industries and Low Borrower Concentration INDUSTRY CONCENTRATION (1) BORROWER CONCENTRATION (1)(4) VRC Companies, LLC, GS AcquisitionCo, Inc., 1.9% 1.6% Foundation Risk Partners Corp., Others (26 Industries), 1.5% Software, 25.7% 21.2% World Insurance Associates, LLC, Capstone Lending,
Slide 9: Overview of Capstone Lending LLC Joint Venture
Overview of Capstone Lending LLC Joint Venture TARGET JV STRUCTURE (1) CURRENT JV OVERVIEW JV Portfolio Snapshot as of June 30, 2026 Assets at Fair Value $324.4MM JV Leverage 1.66x Weighted Average Yield (2) 8.8% 1.8x % First Lien (3) 100.0% Leverage Target # of Portfolio Companies 58 ~$700MM # of
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) $183 $149 $146 2% 3% $145 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% $95 100% 66% 11% 100% 100% 96% 96% 96% 94%
Slide 11: Selected Financial Highlights and Portfolio Information
Selected Financial Highlights and Portfolio Information (Dollars In Thousands, Except Per Share Data) Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Net Investment Income Per Share $0.50 $0.50 $0.49 $0.47 $0.45 Net Realized And Unrealized Gain (Loss) Per Share (1) ($0.09) ($0.18) ($0.16) ($0.52) ($0.36) Earnings Per
Slide 12: Credit Quality of Investments
Credit Quality of Investments As of June 30, 2026, approximately 95% of the portfolio, at fair value, had a risk rating of two or better (1) As of June 30, 2026, certain investments in seven portfolio companies (one net addition) were on non-accrual status, representing $106.5 million, or approx
Slide 13: Quarterly Operating Results
Quarterly Operating Results (Dollar In Thousands, Except Per Share Data) Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Investment Income: Interest And Dividend Income $94,446 $94,198 $90,650 $83,837 $82,742 Payment-in-kind 3,887 4,057 3,726 4,104 4,930 Other Income 1,175 1,467 2,221 1,123 1,102 Total Investment Inc
Slide 14: Quarterly Balance Sheet
Quarterly Balance Sheet (Dollar In Thousands, Except Per Share Data) Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Assets Investments At Fair Value $3,785,496 $3,775,797 $3,771,546 $3,668,950 $3,554,287 Cash And Cash Equivalents (1) 79,626 75,523 94,410 100,513 80,173 Interest And Dividend Receivable 25,299 29,894
Slide 15: NAV per Share Bridge for the Quarter Ended June 30, 2026
NAV per Share Bridge for the Quarter Ended June 30, 2026 $0.45 $19.81 $(0.45) $0.05 $19.50 $(0.36) Q1'26 NAV Net Investment Income Q2'26 Regular Dividend Realized & Unrealized Gain (Loss) Share Accretion From Q2'26 NAV Share Repurchases March 31, 2026 NAV is based on ending shares outstanding as of
Slide 16: Conservative Balance Sheet Strategy
Conservative Balance Sheet Strategy • As of June 30, 2026, the Company had total liquidity of $1,543.1 million, including unrestricted cash and cash equivalents of $71.6 million (1) and undrawn committed debt capacity of $1,471.5 million (2)(3)(9) Debt Principal Available Interest Maturity Commitmen
Slide 17: Dividend History
Dividend History (1) HISTORICAL DISTRIBUTION HISTORICAL DIVIDEND YIELD (2) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 Regular $0.45 $0.45 Regular Dividend Yield 8.9% 9.1% 2026 $0.90 2026 Special Total Dividend Yield 8.9% 9.1% Regular $0.50 $0.50 $0.50 $0.50 Regular Dividend Yield 9.6% 9.7% 9.7% 9.8% 2025 $2.00 202
Slide 18: Investor Relations
Investor Relations msdl@morganstanley.com
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