# Morgan Stanley Direct Lending Fund Cuts Fees

> Morgan Stanley Direct Lending Fund slashes advisory fees in 2027 to boost net income as book value drops.
- Title: Morgan Stanley Direct Lending Fund Cuts Fees · Seekingalpha
- Summary: Morgan Stanley Direct Lending Fund slashes advisory fees in 2027 to boost net income as book value drops.
- Keywords: morgan stanley direct lending fund, advisory fees, net investment income, book value, non-accruals, nav, Seekingalpha
- Source: Seekingalpha — https://seekingalpha.com/article/4965520-morgan-stanley-direct-lending-lower-fees-are-coming-as-book-value-takes-a-hit
- Published: 2026-11-10T04:55:58+00:00
- Read time: 1 min
- Topics: morgan stanley direct lending fund, advisory fees, net investment income, book value, non-accruals, nav, money, business
## Fee Cuts Starting 2027
Morgan Stanley Direct Lending Fund slashes advisory fees in 2027 to enhance net investment income and narrow the dividend coverage gap.
## Book Value Decline
MSDL's net asset value fell 3.8% to $18.76, driven by one major restructuring and rising non-accruals now at 3.4% of cost.
## Market Discount
MSDL trades at a steep 27% discount to net asset value, implying the market expects significant additional credit losses beyond current marks.
## Fair Value Estimate
I estimate fair value at 0.90, 0.95x net asset value ($17, $18/share); current price bakes in losses far exceeding present non-accruals.
## Fee Reduction Timeline
Morgan Stanley Direct Lending Fund will pay its adviser less from January 1, with third-quarter results on November 5.
## Adviser Fee Cut Impact
Lower fees aim to improve net investment income as book value takes a hit from credit losses and restructuring.
## Key takeaway

Morgan Stanley Direct Lending Fund cuts advisory fees starting January 2027 to improve net investment income amid declining book value.