North Haven Private Income Fund will prorate shareholder repurchase requests for the third consecutive quarter after requests once again exceeded the nontraded business development company’s quarterly limit.
The Morgan Stanley private credit fund received requests representing approximately 11.4% of units outstanding as of June 30, 2026. Consistent with its tender-offer terms, the fund will repurchase 5.0% of outstanding units at its September 30 net asset value. It expects to fulfill approximately 43.8% of each investor’s request, subject to final transfer-agent processing.
Repurchase demand was relatively stable compared with the second quarter, when shareholders requested the repurchase of approximately 11.6% of outstanding units. Nearly two-thirds of the third-quarter requests came from investors whose requests had been prorated during the previous two tender offers, demonstrating how unmet liquidity demand can carry into subsequent quarters when investors resubmit their remaining shares.
North Haven said investors who requested full repurchases in each of the first three quarters of 2026 will have received more than 80% of their requested amounts after the latest tender is completed. However, that figure represents the experience of an investor who submitted a full request during all three quarterly tender windows, rather than the percentage fulfilled during the current quarter.
After accounting for new subscriptions and distribution reinvestments, the fund estimates that the repurchases will reduce its NAV by approximately $101 million, or 3.2% of its June 30 NAV. The final amount will be determined using the September 30 NAV per unit.
North Haven reported repurchasing approximately $479 million of units across the three repurchase periods ending September 30. As of July 31, the fund had more than $2 billion of cash and undrawn debt capacity, more than $350 million invested in liquid loans, and a debt-to-NAV ratio of 0.94 times.
The results illustrate an important distinction for advisors and investors: a fund may possess substantial liquidity resources while still limiting quarterly repurchases to preserve its capital structure and align shareholder liquidity with the longer-term nature of its investments. Repurchase programs provide periodic liquidity, but they should not be viewed as guaranteeing that investors can redeem all requested shares within a particular quarter.
Sources
