Morgan Stanley said its North Haven Private Income Fund received redemption requests amounting to about 11.6% of outstanding units during the second quarter, according to an investor update dated June 2026.
In response, the fund agreed to repurchase 5% of outstanding units on a prorated basis. Under that approach, roughly 43% of each investor's redemption request was met. The units accepted for repurchase will be bought back at a price equal to the net asset value (NAV) per unit as of June 30, 2026.
The update noted that more than half of the second quarter redemption requests originated from unitholders whose earlier redemptions were prorated in the first quarter. That recurring pattern of requests contributed to the overall volume of redemptions this quarter.
After taking into account new subscriptions and dividend reinvestments, the net effect of the redemptions on the fund's NAV is approximately $102 million. The firm said that figure represents about 3.2% of the company's NAV as of March 31, 2026.
On liquidity and leverage, the fund reported a debt-to-NAV ratio of 0.97x as of May 31, 2026. As of the same date, the company had more than $2.2 billion in undrawn debt capacity and cash to draw on. The update also highlighted that the fund holds a portfolio of more than $400 million of liquid loans, which the firm said supports its ability to deploy capital while retaining flexibility to satisfy repurchase obligations.
Context and implications
The fund's decision to limit repurchases to 5% of outstanding units and to allocate redemptions on a prorated basis is a mechanism for balancing liquidity needs with ongoing portfolio management. The specified repurchase price ties redemptions to the fund's NAV at month-end, and the disclosed liquidity metrics - including undrawn debt capacity and a pool of liquid loans - outline the resources earmarked to meet those obligations.
Investors will receive repurchase proceeds based on the NAV per unit as of June 30, 2026, and not on transaction-date valuations. The update does not provide additional detail beyond the figures disclosed for redemption volumes, NAV impact, leverage, and available liquidity.