Morgan Stanley is preparing to launch a new private credit vehicle to capture opportunities in a market facing heightened redemption pressure, according to a US SEC filing cited in a Bloomberg report. 

The North Haven Strategic Credit Fund will invest across a broad range of credit strategies, including direct lending, securitised debt, real estate credit, and high-yield bonds.

Structured as an interval fund, the vehicle is expected to allow redemptions of up to 5% of outstanding shares each quarter, reflecting standard liquidity constraints in private credit.

The launch comes as the $1.8tn private credit market faces its most significant liquidity squeeze to date, with retail-focused vehicles experiencing elevated redemption requests.

Managers across the industry have increasingly capped withdrawals, limiting investor exits and highlighting structural tensions between liquidity expectations and long-term investment strategies.

Despite these dynamics, Morgan Stanley is expanding its credit platform, positioning the fund to take advantage of dislocation and diversification opportunities across markets.

The move reflects continued institutional confidence in private credit, even as short-term sentiment remains cautious.

The fund’s multi-strategy approach also signals a shift towards broader credit exposure, combining private and public assets to enhance flexibility and risk management.

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