Financial Data and Key Metrics Changes - For Q4 2024, the net asset value per share was stable at $20.81, compared to $20.83 in the previous quarter [9][31] - Net investment income for Q4 was $50.7 million or $0.57 per share, down from $58.7 million or $0.66 per share in the prior quarter [31] - Total investment income for Q4 was $103 million, a decrease from $110 million in the prior quarter [29] - The debt-to-equity ratio increased to 1.08 times from 0.99 times in the previous quarter [32] Business Line Data and Key Metrics Changes - New investment commitments in Q4 totaled approximately $188 million, resulting in net funded deployment of $144 million, an increase from $124 million in Q3 [10] - The portfolio at fair value was $3.8 billion, representing a year-over-year increase of approximately 19% [24] - The weighted average loan-to-value was approximately 40%, with a median EBITDA of approximately $86 million [26] Market Data and Key Metrics Changes - The company noted a modest pickup in LBO activity during 2024, with private credit remaining the funding source of choice for LBOs [20] - Spreads for new loans compressed in 2024 but stabilized in the second half [18] - The company observed strong borrower fundamentals and healthy fund-level credit statistics, reflecting the strength of the middle market economy [17] Company Strategy and Development Direction - The company aims to continue sourcing and underwriting lending opportunities that offer strong risk-adjusted returns [22] - The strategy includes leveraging the broader Morgan Stanley platform to enhance deal flow and selectivity [13] - The company plans to remain defensive in its investment approach, focusing on resilient sectors amidst economic uncertainties [68] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market generating attractive risk-adjusted investing opportunities due to a resilient economy and anticipated deregulation [17] - The company is closely monitoring potential impacts from government reforms, including tariffs, on its existing portfolio [21] - Management believes that the rebound in M&A activity will be gradual due to uncertainties in the legislative agenda [20] Other Important Information - The company declared a regular distribution of $0.50 per share for Q1 2025 [33] - An amended share repurchase program was authorized to repurchase up to $100 million of company shares at prices below its net asset value per share [34] Q&A Session Summary Question: Review of portfolio concentrations regarding tariffs and strategy changes for 2025 - Management clarified that there is no direct auto exposure, and the sectors with the longest investments are somewhat insulated from tariff impacts [36][38] Question: Outlook on M&A activity over the next three quarters - Management indicated that while private equity dry powder remains a tailwind, uncertainties around tariffs may slow M&A activity, expecting a more back-ended recovery in 2025 [41][44] Question: Trends in net investment income (NII) and rate cuts impact - Management noted that about two-thirds of the portfolio reset in Q4, with a lag remaining for the other third, impacting NII [51][53] Question: Repayment numbers and trends - Management stated that the repayment activity can be lumpy and does not indicate a specific trend for the future [59][60] Question: Leverage outlook for the year - Management confirmed the target leverage range of 1 to 1.25 times, emphasizing a focus on quality and capital preservation [72][76]

Financial Performance - The company's net investment income per share was $0.57 in Q4 2024, compared to $0.66 in Q3 2024[23] - Earnings per share was $0.58 in Q4 2024, compared to $0.60 in Q3 2024[23] - Net asset value per share was $20.81 as of Q4 2024, slightly down from $20.83 in Q3 2024[23] - The company declared dividends of $0.60 per share for Q4 2024, including a regular dividend of $0.50 and a special dividend of $0.10[23] Portfolio Composition and Activity - The total fair value of the portfolio was approximately $3.8 billion, invested in 208 portfolio companies across 33 industries[23] - The weighted average yield at amortized cost of debt investments was 10.4%[23] - The company committed $188.3 million to new investments during Q4 2024, resulting in a net funded portfolio increase of $143.7 million[23] - Approximately 100% of new investment commitments were in first lien senior secured loans[23] - 96.5% of the portfolio consists of first lien investments[16] - 99.6% of the portfolio consists of floating rate loans[16] Debt and Liquidity - The outstanding debt balance was $1,983.4 million, with 53% unsecured debt; the quarter-end debt-to-equity ratio was 1.08x[23] - The company had total liquidity of $1,035.2 million, including unrestricted cash and cash equivalents of $70.4 million and undrawn, committed debt capacity of $964.8 million[23]

Core Viewpoint - Morgan Stanley Direct Lending Fund reported quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.63 per share, representing a year-over-year decline from $0.67 per share [1][2] Earnings Performance - The company experienced an earnings surprise of -9.52% for the recent quarter, having previously delivered a surprise of 1.54% in the prior quarter [1][2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Revenue Analysis - For the quarter ended December 2024, the company posted revenues of $103 million, missing the Zacks Consensus Estimate by 4.82%, compared to $100.8 million in the same quarter last year [2] - The company has exceeded consensus revenue estimates three times over the last four quarters [2] Stock Performance - Morgan Stanley Direct Lending Fund shares have increased by approximately 0.4% since the beginning of the year, while the S&P 500 has gained 1.3% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates for the upcoming quarter at $0.60 and $2.37 for the current fiscal year [4][7] - The estimate revisions trend for the company is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which the company belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - For the quarter ended December 31, 2024, net investment income was $50.7 million, or $0.57 per share, down from $58.7 million, or $0.66 per share for the previous quarter[6]. - Total investment income for the quarter was $103.0 million, compared to $109.8 million for the quarter ended September 30, 2024, primarily due to lower base rates and repayment-related income[5]. - Total investment income for the year ended December 31, 2024, was $416,075, an increase of 13.0% from $367,738 in 2023[20]. - Net investment income after taxes for 2024 was $220,235, up from $198,061 in 2023, reflecting an increase of 11.1%[20]. - Earnings per share (EPS) for 2024 was $2.43, down from $3.11 in 2023, representing a decrease of 21.9%[20]. - Interest income rose to $396,421 in 2024, up 11.5% from $355,530 in 2023[20]. - Total expenses for 2024 were $209,374, an increase of 9.6% from $191,071 in 2023[20]. - Management fees increased to $35,415 in 2024, compared to $30,550 in 2023, reflecting an increase of 16.1%[20]. - The net increase in net assets resulting from operations for 2024 was $215,564, a decrease from $231,014 in 2023[20]. - The net change in unrealized appreciation on non-controlled/non-affiliated investments was $11,904 in 2024, down from $32,835 in 2023[20]. Investment Activity - New investment commitments for the quarter were $188.3 million, with fundings of $187.3 million and sales and repayments totaling $43.6 million, resulting in a net funded deployment of $143.7 million[6]. - The investment portfolio comprised 208 companies across 33 industries, with an average investment size of $18.2 million, representing 0.5% of the total portfolio on a fair value basis[9]. Debt and Leverage - Total debt outstanding as of December 31, 2024, was $1.983 billion, compared to $1.842 billion as of September 30, 2024, reflecting an increase in leverage with a debt-to-equity ratio of 1.08x[10]. - The Company executed an amendment to the Truist Credit Facility, extending the maturity to February 2030 and increasing the total commitment to $1.45 billion[15]. - As of December 31, 2024, the Company had $964.8 million of availability under its credit facilities and $70.4 million in unrestricted cash[10]. Investment Valuation - The fair value of investments as of December 31, 2024, was approximately $3.8 billion, an increase from $3.6 billion as of September 30, 2024[9]. - The total weighted average yield of investments in debt securities was 10.4% at amortized cost and 10.5% at fair value as of December 31, 2024, down from 11.0% in the previous quarter[9].

Investment Risk and Allocation - The Investment Adviser rates portfolio investments at least quarterly, with Risk Rating 1 indicating the least risk and Risk Rating 4 indicating substantial risk and potential loss of initial cost basis[74]. - Risk Rating 1 investments perform above initial underwriting expectations, while Risk Rating 4 investments are substantially below expectations and may not recoup initial cost[75]. - Morgan Stanley engages in a broad spectrum of activities, creating potential conflicts of interest in allocating investment opportunities among affiliated accounts[77]. - The Adviser has implemented allocation policies to ensure fair access to new private credit investment opportunities among affiliated accounts[82]. - Morgan Stanley may invest in companies that compete with portfolio companies, leading to conflicts in resource allocation[83]. - The Adviser has received an SEC Order allowing co-investment with affiliated accounts, subject to certain conditions[86]. - Investment opportunities may be allocated to other affiliated accounts, potentially limiting access to attractive investments for the company[87]. - The company may invest in opportunities that Morgan Stanley has declined, and vice versa, creating a dynamic investment landscape[80]. - The Adviser may receive fees for origination activities, which could influence risk-taking behavior on behalf of the company[85]. - Conflicts of interest may arise even when co-investing in the same securities, necessitating careful allocation of opportunities[86]. Financial Performance and Management Fees - The base management fee is set at an annual rate of 1.0% of average gross assets, with a waiver reducing it to 0.75% for the period from January 24, 2024, to January 24, 2025[109]. - The incentive fee structure includes a hurdle rate of 1.5% per quarter, with 100% of pre-incentive fee net investment income payable until a "catch up" of 17.5% is reached[114]. - The company anticipates generating cash from share issuance and cash flows from operations, including interest received on debt investments[92]. - The company maintained a stable net asset value (NAV) of $1.8 billion across all quarters with a leverage ratio of 1.0x[137]. - The cumulative net return for Q2 was $72.0 million after accounting for net adjusted capital returns of $18.0 million[139]. - The company experienced net realized losses of 0.25% of NAV in Q1, Q2, and Q3, impacting overall performance[137]. Share Repurchase and Dividend Policies - The company has entered into a share repurchase plan to acquire up to $100 million of its Common Stock at prices below its net asset value per share[95]. - The share repurchase plan commenced on March 26, 2024, following the end of the "restricted period" under Regulation M[99]. - The company has adopted a dividend reinvestment plan (DRIP) effective January 26, 2024, allowing stockholders to reinvest dividends in additional shares[100]. - The company must comply with asset coverage ratios and covenants when distributing to stockholders or repurchasing shares[94]. Regulatory Compliance and Risks - The investment advisory agreement was amended and restated on January 24, 2024, and requires annual approval by stockholders or the Board[107]. - The company is subject to various risks, including interest rate fluctuations and the need to raise additional capital to support growth[150]. - The company is required to adopt and implement written policies to prevent violations of federal securities laws and designate a chief compliance officer for administration[174]. - The Sarbanes-Oxley Act imposes regulatory requirements on the company, necessitating ongoing compliance monitoring and policy reviews[175]. - The company must disclose any significant changes in internal controls over financial reporting, ensuring transparency and compliance with regulatory requirements[179]. - The company is prohibited from knowingly participating in certain transactions with affiliates without prior approval from Independent Directors and, in some cases, the SEC[172]. Investment Company Status and Taxation - The company intends to qualify annually as a RIC, which typically does not incur significant entity-level income taxes due to the ability to deduct distributions made to stockholders[153]. - The company is required to distribute at least 90% of its investment company taxable income (ICTI) to maintain its status as a regulated investment company (RIC) and avoid corporate-level U.S. federal income taxes[191]. - To qualify as a RIC, the company must meet specific source-of-income and asset diversification requirements, as well as annual distribution requirements[193]. - At least 90% of the company's gross income must derive from specific sources to qualify as a RIC, including dividends and interest[197]. - Any failure to qualify as a RIC could result in the company being taxed at regular corporate rates, affecting distributions to stockholders[211]. Market and Economic Conditions - The company operates in a highly competitive market, facing challenges from public and private investment funds, BDCs, and commercial finance companies[90]. - Market interest rate increases may allow the company to invest in higher-return debt instruments, enhancing pre-incentive fee net investment income[119]. - Changes in interest rates significantly impact the company's net investment income, which is affected by the difference between investment and borrowing rates[533]. - The company acknowledges that health crises and other external events can adversely affect investments and net asset value, leading to increased market volatility[532]. - The report highlights the interconnectedness of global economies, increasing the risk of adverse impacts across regions[532]. Investment Strategies and Instruments - The company primarily makes investments in qualifying assets as defined under the 1940 Act, ensuring at least 70% of its total assets are qualifying assets[154]. - The company invests primarily in illiquid debt and equity securities, requiring fair value assessments for accurate valuations[531]. - The company may use standard hedging instruments to mitigate interest rate fluctuations, but this could limit potential benefits from lower rates[536]. - The company may invest in Passive Foreign Investment Companies (PFICs), which could affect the taxation of gains and distributions[206]. - Fluctuations in foreign currency exchange rates can impact the company's income and distribution requirements[209].

Financial Performance - Net investment income for Q3 2024 was $58.7 million, or $0.66 per share, up from $56.1 million, or $0.63 per share in Q2 2024, representing a 4.6% increase in income per share [2][6]. - Total investment income increased to $109.8 million in Q3 2024 from $104.2 million in Q2 2024, driven by capital deployment and repayment-related income [5]. - Total investment income for the three months ended September 30, 2024, was $109,752,000, an increase of 16.5% compared to $94,451,000 for the same period in 2023 [18]. - Net investment income after taxes for the nine months ended September 30, 2024, was $169,501,000, up from $142,591,000 in the prior year, reflecting an increase of 18.9% [18]. - Earnings per share (basic and diluted) for the three months ended September 30, 2024, was $0.60, a decrease of 41.2% from $1.02 in the same period last year [18]. - Net increase in net assets resulting from operations for the three months ended September 30, 2024, was $59,045,000, compared to $73,408,000 for the same period in 2023, representing a decrease of 19.6% [18]. Investment Activity - New investment commitments totaled $455.4 million with fundings of $377.0 million and sales and repayments of $252.9 million, resulting in a net funded deployment of $124.1 million [2][9]. - The fair value of the investment portfolio was approximately $3.6 billion, comprised of 200 portfolio companies across 33 industries, with an average investment size of $18.2 million [8]. Debt and Expenses - Debt-to-equity ratio increased to 0.99x as of September 30, 2024, compared to 0.90x as of June 30, 2024 [4][10]. - Total principal debt outstanding was $1.842 billion, with a combined weighted average interest rate of 6.45% for the quarter [10]. - The total expenses for Q3 2024 were $51.0 million, up from $48.1 million in Q2 2024, primarily due to higher interest and financing expenses [6]. - Total expenses for the nine months ended September 30, 2024, were $154,177,000, an increase of 9.1% from $141,271,000 in the prior year [18]. - Management fees for the three months ended September 30, 2024, were $9,100,000, an increase of 17.3% compared to $7,754,000 for the same period in 2023 [18]. Investment Income and Gains - Interest income for the three months ended September 30, 2024, was $105,129,000, up 15.5% from $90,977,000 in the same period last year [18]. - The total weighted average yield of investments in debt securities was 11.0% as of September 30, 2024, down from 11.6% in Q2 2024 [9]. - Net realized and unrealized gain (loss) for the three months ended September 30, 2024, was a loss of $5,523,000, compared to a gain of $22,834,000 in the same period last year [18]. - The net change in unrealized appreciation on investments was $5.4 million, offset by realized losses of $11.0 million [7]. - Payment-in-kind income for the nine months ended September 30, 2024, was $7,644,000, significantly higher than $2,204,000 for the same period last year, indicating a growth of 247.5% [18]. Dividends - The Company declared a regular dividend of $0.50 per share and a special dividend of $0.10 per share, both payable in January 2025 [12]. Share Information - Weighted average shares outstanding increased to 89,264,686 for the three months ended September 30, 2024, compared to 71,874,113 for the same period in 2023 [18].

Investment Performance - The company reported total investments at fair value of $3,640,324,000 as of September 30, 2024, compared to $3,193,561,000 as of December 31, 2023, reflecting an increase of approximately 14.0%[191] - First lien debt constitutes 96.0% of total investments at fair value, amounting to $3,492,302,000, up from 94.1% or $3,004,544,000 as of December 31, 2023[191] - As of September 30, 2024, equity investments accounted for 1.5% of total investments at fair value, valued at $55,139,000, compared to 1.7% or $54,538,000 as of December 31, 2023[191] - The investment portfolio at amortized cost grew from $3,158,601 as of September 30, 2023, to $3,662,618 as of September 30, 2024, representing an increase of about 15.8%[200] - The number of portfolio companies increased to 200 as of September 30, 2024, compared to 172 as of December 31, 2023[192] Revenue Generation - The company primarily generates revenue through interest income from debt investments, with a typical term of five to eight years and interest rates based on benchmarks like SOFR[189] - Total revenue is supplemented by various fees, including commitment, origination, and structuring fees, contributing to overall income generation[189] - Total investment income increased to $109,752 for the three months ended September 30, 2024, compared to $94,451 for the same period in 2023, reflecting a growth of approximately 16.4%[199] - Net investment income after taxes for the three months ended September 30, 2024, was $58,729, up from $50,574 in the same period of 2023, indicating a rise of approximately 16.3%[199] Investment Strategy - The company’s investment strategy focuses on middle-market companies with annual EBITDA between $15 million and $200 million, targeting attractive risk-adjusted returns[187] - The company plans to invest prudently in the secondary loan market during periods of market dislocation to provide better risk-adjusted returns[223] Financial Management - The company expects general and administrative expenses to remain stable or decline as a percentage of total assets during periods of asset growth[190] - The weighted average yield on debt and income-producing investments at fair value was 11.0% as of September 30, 2024, down from 12.1% as of December 31, 2023[192] - The weighted average net leverage through tranche decreased to 5.8x as of September 30, 2024, from 6.0x as of December 31, 2023[192] - The percentage of debt investments with one or more financial covenants was 65.8% as of September 30, 2024, down from 74.6% as of December 31, 2023[192] Debt and Equity Management - As of September 30, 2024, the total outstanding debt obligations amounted to $1,841,987,000, with an unused portion of $1,102,735,000[217] - The company had borrowings denominated in Euros (EUR) of 238 and Canadian dollars (CAD) of $300 as of September 30, 2024[217] - The carrying value of the 2027 Notes, 2025 Notes, and 2029 Notes as of September 30, 2024, was presented net of unamortized debt issuance costs totaling $2,657,000, $1,155,000, and $3,608,000 respectively[217] Shareholder Returns - Total distributions declared for the nine months ended September 30, 2024, amounted to $1.60 per share, totaling $1,723,988, compared to $1.67 per share for the same period in 2023[213] - A share repurchase plan was initiated on January 25, 2024, allowing for the acquisition of up to $100 million in Common Stock at prices below net asset value[215] - The company repurchased a total of 429,653 shares under the 10b5-1 Plan during the three months ended September 30, 2024[216] - A distribution of $0.50 per share was declared on November 4, 2024, payable on January 24, 2025, to shareholders of record as of December 31, 2024[217] Market Risks - The company is subject to financial market risks, including valuation risk, market risk, and interest rate risk[222] - Changes in interest rates may materially affect the company's net investment income due to the expected funding of investments with borrowings[226] - The company may face risks related to investments in the commercial services and supplies industry[229] - A downturn in the commercial services and supplies industry could significantly impact aggregate returns on investments[229] - Operating results and financial conditions of portfolio companies may be adversely affected by decreased demand due to seasonality or market forces[229] - High costs and time requirements for recruiting and training workforce could delay service provision and supply delivery[229] - Ineffective sales and marketing efforts by portfolio companies could lead to insufficient revenue generation and profitability issues[229] - Failure to repay interest or principal on debt investments may arise from portfolio companies' inability to sustain profitability[229] - Overall business, financial condition, and operational results could be materially adversely affected by these factors[229]

Morgan Stanley | Direct Lending Fund Morgan Stanley Direct Lending Fund (NYSE:MSDL) Second Quarter 2024 Earnings Presentation 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 by, any individual recipient as investment advice, a recommendation to buy, hold or s ...

Financial Data and Key Metrics Changes - Net asset value per share increased by $0.16 to $20.83 per share, with net investment income of $0.63 per share consistent with the first quarter [6][14] - Total investment income for the second quarter was $104.2 million, up from $99.1 million in the prior quarter, driven by recurring interest income [13] - Total expenses for the second quarter were $48.1 million compared to $44.5 million in the prior quarter [14] - Debt-to-equity ratio increased to 0.9 times from 0.81 times as of March 31, 2024 [15] Business Line Data and Key Metrics Changes - New investment commitments totaled approximately $673.9 million in 46 portfolio companies, with net funded deployment of $210 million compared to $97 million in the first quarter [6][13] - Portfolio at fair value was $3.5 billion, with 95% in first-lien debt and 3% in second-lien debt [11] - Weighted average loan-to-value was approximately 40%, with a weighted average EBITDA of portfolio companies at $150 million [12] Market Data and Key Metrics Changes - Gross asset yields remained elevated, and credit performance was solid, with deal flow expected to accelerate [8][9] - The capital market rebound is on track, with sponsor M&A likely to accelerate, although not in a straight line [9] Company Strategy and Development Direction - The company aims to achieve a target leverage of 1 to 1.25 in the second half of the year without stretching on credit [6] - The focus is on delivering shareholder value through a combination of low expenses and a thoughtful fee structure [7] - The company believes its differentiated origination platform enhances its ability to find attractive lending opportunities [20] Management's Comments on Operating Environment and Future Outlook - The first half of 2024 was marked by economic outperformance, with a strong risk appetite for Private Credit as an asset class [8] - Management noted that predicting repayments is challenging, but there has been an uptick in repricing and repayments [21][23] - The company remains cautious in capital deployment due to macroeconomic uncertainties [22] Other Important Information - The Board of Directors declared a regular distribution of $0.50 per share for the third quarter, with an estimated spillover net investment income of $63.5 million [17] - The company closed an offering of $350 million in unsecured notes due in 2029, with a fixed coupon of 6.15% [16] Q&A Session Summary Question: How long will it take to rotate into more unique, non-overlapping positions? - Management believes they have a unique origination platform and focuses on high-quality opportunities, regardless of overlap with other BDCs [18][20] Question: What are the expectations for repayments and refinancing in the second half? - Management finds it hard to predict repayments but notes an increase in gross originations and a cautious approach to capital deployment [21][22] Question: Thoughts on the upper middle market or middle market segments for potential originations? - Management sees opportunities across the size spectrum and emphasizes the importance of bespoke analysis for each deal [26][30]

Financial Performance - Net investment income for Q2 2024 was $56.1 million, or $0.63 per share, consistent with Q1 2024[4] - Total investment income increased to $104.2 million in Q2 2024 from $99.1 million in Q1 2024, driven by capital deployment and prepayment income[3] - Total investment income for the three months ended June 30, 2024, was $104,188,000, an increase of 17.1% from $88,894,000 for the same period in 2023[13] - Net investment income after taxes for the six months ended June 30, 2024, was $110,772,000, compared to $92,017,000 for the same period in 2023, reflecting a growth of 20.4%[13] - Total investment income for the six months ended June 30, 2024, was $203,289,000, up 17.7% from $172,533,000 for the same period in 2023[13] Asset and Debt Management - Net asset value per share rose to $20.83 as of June 30, 2024, compared to $20.67 as of March 31, 2024[2] - Total debt outstanding increased to $1.675 billion as of June 30, 2024, from $1.492 billion as of March 31, 2024[7] - The debt-to-equity ratio was 0.90x as of June 30, 2024, compared to 0.81x as of March 31, 2024[2] Investment Activity - New investment commitments reached $673.9 million in Q2 2024, significantly up from $232.1 million in Q1 2024[6] - The investment portfolio had a fair value of approximately $3.5 billion, comprising 192 portfolio companies across 34 industries[5] - The total weighted average yield of investments in debt securities was 11.6% at amortized cost as of June 30, 2024[6] Earnings and Dividends - The Company declared a regular dividend of $0.50 per share, payable on July 25, 2024[1] - Earnings per share (basic and diluted) for the three months ended June 30, 2024, was $0.66, down 16.5% from $0.79 in the prior year[13] - Net investment income per share (basic and diluted) for the three months ended June 30, 2024, was $0.63, a decrease of 5.9% from $0.67 in the same period of 2023[13] Expenses and Management Fees - Total expenses for the three months ended June 30, 2024, were $51,378,000, up 10.0% from $46,683,000 in the prior year[13] - Management fees for the three months ended June 30, 2024, were $8,639,000, an increase of 16.0% from $7,446,000 in the same period of 2023[13] Realized Gains and Net Assets - Net realized gain on non-controlled/non-affiliated investments for the three months ended June 30, 2024, was $108,000, compared to no gain in the same period of 2023[13] - The net increase in net assets resulting from operations for the three months ended June 30, 2024, was $59,045,000, compared to $56,442,000 in the prior year[13] Credit Rating - Moody's affirmed MSDL's Baa3 (stable) rating in July 2024[9]