KBRA Assigns Rating to North Haven Private Income Fund LLC's $300 Million Senior Unsecured Notes Due 2030
KBRA has assigned a BBB rating with a Stable Outlook to North Haven Private Income Fund 's $300 million, 5.75% senior unsecured notes due in 2030. The rating is supported by North Haven's strong ties to Morgan Stanley Asset Management's $1.5 trillion AUM and access to capital through Morgan Stanley Wealth Management. Key factors include:
1. North Haven's $4.4 billion investment portfolio (pro-forma $5.5 billion post-merger)
2. Low leverage of 0.42x (pro-forma ~0.80x)
3. Diversified funding mix with 69% unsecured debt
4. Solid liquidity with $1.52 billion available credit and $165.9 million cash
5. operating history offset by management's long tenure in private credit
The company operates as a BDC and RIC, with MS Capital Partners Adviser Inc. as its investment adviser.
KBRA ha assegnato un rating BBB con un Outlook Stabile alle obbligazioni senior non garantite da 300 milioni di dollari, 5,75% di North Haven Private Income Fund in scadenza nel 2030. Il rating è supportato dai forti legami di North Haven con gli $1,5 trilioni di AUM di Morgan Stanley Asset Management e dall'accesso a capitale attraverso Morgan Stanley Wealth Management. I fattori chiave includono:
1. Il portafoglio di investimenti di North Haven di 4,4 miliardi di dollari (pro-forma 5,5 miliardi post-fusione)
2. Basso leverage di 0,42x (pro-forma ~0,80x)
3. Mix di finanziamento diversificato con il 69% di debito non garantito
4. Solida liquidità con 1,52 miliardi di dollari di credito disponibile e 165,9 milioni di dollari in cassa
5. Storia operativa compensata dall'esperienza pluriennale della direzione nel credito privato
L'azienda opera come BDC e RIC, con MS Capital Partners Adviser Inc. come consulente per gli investimenti.
KBRA ha asignado una con una a las notas senior no garantizadas de 300 millones de dólares, 5.75% del North Haven Private Income Fund, con vencimiento en 2030. La calificación está respaldada por los fuertes lazos de North Haven con los $1.5 trillones en AUM de Morgan Stanley Asset Management y el acceso a capital a través de Morgan Stanley Wealth Management. Los factores clave incluyen:
1. El portafolio de inversión de North Haven de 4.4 mil millones de dólares (pro-forma de 5.5 mil millones después de la fusión)
2. Baja apalancamiento de 0.42x (pro-forma ~0.80x)
3. Mezcla de financiamiento diversificada con el 69% de deuda no garantizada
4. Sólida liquidez con $1.52 mil millones de crédito disponible y $165.9 millones en efectivo
5. Historia operativa compensada por la larga trayectoria de la administración en crédito privado
La compañía opera como un BDC y un RIC, con MS Capital Partners Adviser Inc. como su asesor de inversiones.
KBRA는 North Haven Private Income Fund의 300억 달러, 5.75%의 만기 없는 선순위 노트(2030년 만료)에 BBB 등급과 안정적 전망을 부여했습니다. 이 등급은 Morgan Stanley 자산 관리의 1.5조 달러 AUM과 Morgan Stanley Wealth Management를 통한 자본 접근으로 North Haven의 강력한 유대에 의해 지원됩니다. 주요 사항은 다음과 같습니다:
1. North Haven의 44억 달러 투자 포트폴리오(합병 후 55억 달러)
2. 낮은 레버리지 0.42배 (합병 후 ~0.80배)
3. 69% 비보장 부채를 가진 다양한 자금 조달 믹스
4. 15억 2천만 달러의 신용 한도와 1억 6천 5백 90만 달러의 현금을 보유한 견조한 유동성
5. 사모 신용에서의 경영진의 장기적인 경력을 보완하는 운영 기록
회사는 BDC 및 RIC로 운영되며, MS Capital Partners Adviser Inc.가 투자 고문으로 있습니다.
KBRA a attribué une note BBB avec une perspective Stable aux obligations senior non garanties de 300 millions de dollars, 5,75% du North Haven Private Income Fund arrivant à échéance en 2030. La note est soutenue par les liens solides de North Haven avec les 1,5 trillion de dollars d'AUM de Morgan Stanley Asset Management et l'accès au capital via Morgan Stanley Wealth Management. Les facteurs clés incluent :
1. Le portefeuille d'investissement de North Haven de 4,4 milliards de dollars (pro-forma 5,5 milliards après fusion)
2. Un faible levier de 0,42x (pro-forma ~0,80x)
3. Un mix de financement diversifié avec 69% de dettes non garanties
4. Une liquidité solide avec 1,52 milliard de dollars de crédit disponible et 165,9 millions de dollars en espèces
5. Une histoire opérationnelle compensée par la longue expérience de la direction dans le crédit privé
L'entreprise opère en tant que BDC et RIC, avec MS Capital Partners Adviser Inc. comme conseiller en investissement.
KBRA hat dem North Haven Private Income Fund eine BBB-Bewertung mit einem stabilen Ausblick für die 300 Millionen US-Dollar, 5,75% Senior Unsecured Notes mit Fälligkeit im Jahr 2030 zugewiesen. Die Bewertung wird durch die starken Verbindungen von North Haven zu Morgan Stanley Asset Managements 1,5 Billionen USD AUM und den Zugang zu Kapital über Morgan Stanley Wealth Management unterstützt. Wichtige Faktoren sind:
1. Das Investitionsportfolio von North Haven in Höhe von 4,4 Milliarden US-Dollar (pro-forma 5,5 Milliarden nach der Fusion)
2. Geringe Verschuldung von 0,42x (pro-forma ~0,80x)
3. Diversifizierte Finanzierungsstruktur mit 69% ungesichertem Schulden
4. Solide Liquidität mit 1,52 Milliarden US-Dollar verfügbaren Krediten und 165,9 Millionen US-Dollar in bar
5. Betriebshistorie, die durch die langjährige Erfahrung des Managements im Private Credit ausgeglichen wird
Das Unternehmen agiert als BDC und RIC, wobei MS Capital Partners Adviser Inc. als Anlageberater fungiert.
- BBB rating assigned to $300 million senior unsecured notes
- Strong ties to Morgan Stanley's $1.5 trillion AUM
- $4.4 billion investment portfolio (pro-forma $5.5 billion post-merger)
- Low leverage of 0.42x (pro-forma ~0.80x)
- High percentage of unsecured debt at 69%
- Solid liquidity with $1.52 billion available credit and $165.9 million cash
- Only one portfolio company on non-accrual (0.1% of FV)
- operating history
- Relatively illiquid investments
- Retained earnings constraints as a RIC
- Uncertain economic environment with high base rates, inflation, and geopolitical risk
Insights
The BBB rating assigned to North Haven Private Income Fund's
Key strengths include:
- A substantial
$4.4 billion investment portfolio, expanding to$5.5 billion post-merger - Diversification across 41 industries, focusing on defensive sectors
- Low non-accrual rate of
0.1% at fair value - Conservative leverage of 0.42x, increasing to ~0.80x post-merger
- Strong liquidity position with
$1.52 billion in available credit facilities
However, investors should note the fund's operating history and exposure to economic uncertainties. The stable outlook suggests a balanced risk profile, making this an intriguing option for those seeking exposure to private credit markets with institutional backing.
North Haven's positioning within Morgan Stanley's ecosystem offers a unique value proposition for investors. The fund benefits from Morgan Stanley's
The acquisition of SL Investment Corp. further strengthens North Haven's market position. This strategic move expands the portfolio and potentially enhances returns for investors. The fund's focus on less cyclical sectors like Software (
Investors should appreciate the fund's conservative leverage target of 1.0x to 1.25x, which aligns with industry norms while maintaining flexibility. The high percentage of unsecured debt (
Key Credit Considerations
The rating and Outlook are supported by
At 2Q24, the company maintained low leverage of 0.42x, which, on a pro-forma basis, increased to ~0.80x, still appropriate in our view and below the company’s target leverage range of 1.0x and 1.25x, which is in line with peers and within regulatory asset coverage minimum of
Counterbalancing North Haven’s credit strengths are the company’s limited operating history offset by the long tenure of its management in private credit, the relatively illiquid investments, retained earnings constraints as a Regulated Investment Company (RIC), and an uncertain economic environment with high base rates, inflation, and geopolitical risk.
North Haven Private Income Fund LLC is a
Rating Sensitivities
Given the Stable Outlook, a rating upgrade is not expected in the medium term. A rating downgrade and/or Outlook change to Negative could be considered if management alters its stated company strategy by increasing its focus on riskier investments coupled with higher leverage metrics. A prolonged downturn in the
To access rating and relevant documents, click here.
Methodologies
Disclosures
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the
Doc ID: 1005991
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Analytical Contacts
Teri Seelig, Managing Director (Lead Analyst)
+1 646-731-2386
teri.seelig@kbra.com
Kevin Kent, Director
+1 301-960-7045
kevin.kent@kbra.com
Business Development Contact
Constantine Schidlovsky, Senior Director
+1 646-731-1338
constantine.schidlovsky@kbra.com
Source: Kroll Bond Rating Agency, LLC
FAQ
What rating did KBRA assign to North Haven Private Income Fund's $300 million notes?
How does North Haven's relationship with Morgan Stanley (MS) impact its rating?
What is North Haven Private Income Fund's current leverage ratio?
What are the main risks associated with North Haven Private Income Fund?
