Direct Lending: Selective Exposure

Private credit has entered a new phase. Stronger underwriting, wider spreads and greater manager differentiation are reshaping the direct lending market, creating new opportunities for institutional investors focused on income and portfolio resilience.

Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of a newly developed, 1.5 million-square-foot distribution facility in Kansas City, Missouri, for $158.5 million.

This paper argues that the "Great Grid Upgrade" will be driven not only by building new grid infrastructure but by deploying a ‘toolkit’ of commercially-proven, mature technologies that improve grid flexibility, capacity, stability, and visibility. Deploying and integrating these solutions, will better allow operators to continue to deliver affordable power reliably in a market experiencing broad-based demand growth for the first time in a generation.

A shift is occurring toward a higher nominal growth environment, evolving Fed communication strategies, and implications for both bond and equity markets. Volatility may rise as a result, we discuss how we are managing our asset allocation in this new regime.