Morgan Stanley Private Credit | Investment Strategy
 

INVESTMENT STRATEGY

Building lasting partnerships founded on trust and credibility

 

 

INVESTMENT CRITERIA

Flexibility Delivered

Our flexible capital base enables us to support a wide range of financings with a tailored approach for each investment profile.

Geography

Primarily U.S. & Canada

Transaction Types

LBOs, Acquisitions, Growth Capital, Refinancings, Recapitalizations, Complex Situations, Other

Target Companies

Sponsored, Non-Sponsored

$5M - $100M+

EBITDA1

$20M - $200M+

HOLD SIZE1

Investment Strategies

Direct Lending

Directly originated loans for North American-based, private equity sponsored middle market and lower middle-market companies.

$13.5B

COMMITTED CAPITAL2

Up to $200MM

EBITDA

7%+

TARGET ASSET YIELD

Opportunistic Credit

Flexible mandate including directly originated loans as well as secondary purchases and complex situations for North American and Western European companies.

$2.6B

COMMITTED CAPITAL2

$10M

MINIMUM EBITDA

12%+

TARGET ASSET YIELD

 

INVESTMENT PRODUCTS

Customized cash-flow solutions

Through our integrated, multi-strategy approach we have the ability to provide a full suite of investment products including revolvers, funded term loans, and delayed draw term loans across all parts of the debt capital stack.

 

Senior Debt

First Lien

Stretch Senior

Unitranche

Last Out

ARR-Based

Junior Capital

Second Lien

Mezzanine

HoldCo Notes

Equity

Preferred Equity

Equity Co-Invest

 

INDUSTRIES

Broad industry experience

Our tenured investment team has experience financing middle market businesses across a wide range of industries through multiple market cycles. In addition, we are able to leverage the deep industry resources of Morgan Stanley to our advantage.

 

 

 
 

1 For Illustrative Purposes Only. Information on this page should be viewed as a guide, each strategy may invest in assets outside of the ranges provided. There are no guarantees that the team will be able to source assets at these levels and that market conditions will not change.

2 As of August 1, 2023. Based on actual capital commitments received plus (except as specified in the following sentence) committed leverage, where applicable. A portion of available capital is comprised of business development companies sponsored by Morgan Stanley Private Credit for which available capital is calculated based on actual capital commitments received or (for non-drawdown structures) subscription amounts plus, in each case, target leverage of 1.25x as measured by debt-to-equity (“BDC Target Leverage”). BDC Target Leverage is subject to agreement of terms with financing providers, compliance with certain asset coverage ratio requirements under the Investment Company Act of 1940, as amended, and compliance with financial covenants under loan and credit agreements and accordingly, may not be achieved.