Ashwin Krishnan
About Ashwin Krishnan
Ashwin Krishnan, age 49, was appointed Chief Investment Officer (CIO) of Morgan Stanley Direct Lending Fund (MSDL) effective on or about July 25, 2025. He has been part of Morgan Stanley’s Private Credit platform since its inception in 2009, serves on the Adviser’s Investment Committee since 2019, and previously worked in Communications Investment Banking at UBS. He holds an M.S. in Engineering from Columbia University and a B.S. in Industrial Engineering from Bangalore University, India .
MSDL’s recent operating metrics under the current leadership team include net investment income of $43.7 million ($0.50/share) in Q3 2025, NAV per share of $20.41, and debt-to-equity of 1.17x. The Company also priced and closed its inaugural $401mm CLO at a blended cost of approximately SOFR+1.70% in September 2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Morgan Stanley Investment Management (MSIM) | Head of North America Private Credit; Portfolio Manager (Opportunistic Credit); Investment Committee member of MS Capital Partners Adviser Inc. | 2019–present (IC); 2009–present (Private Credit platform); 2003–present (MSIM) | Co-leads NA private credit origination/portfolio; investment committee oversight for Direct Lending strategies |
| UBS | Communications Investment Banking | pre-2003 | Sector-focused coverage; foundational credit and capital markets experience |
Fixed Compensation
The Company discloses that none of its executive officers receive direct compensation from MSDL; compensation for finance/compliance functions is paid by the Administrator, with an allocable portion reimbursed by MSDL. The Compensation Committee does not produce an executive compensation report as executives are not paid directly by the Company .
| Component | 2025 Disclosure for CIO (Company-Paid) |
|---|---|
| Base Salary | Not paid directly by MSDL |
| Target Bonus % | Not paid directly by MSDL |
| Actual Bonus | Not paid directly by MSDL |
| Director/Committee Cash Fees | Not applicable to CIO role |
Performance Compensation
| Metric | Plan Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Company-paid PSUs/RSUs/Options | — | — | — | — | — |
| Notes | No company-paid equity awards or option grants disclosed for executive officers; executives are not directly compensated by MSDL . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership (common) | 0 shares as of Form 3 filing dated Aug 12, 2025 |
| Ownership as % of outstanding | ~0% (based on 86.8–88.5mm shares outstanding around mid-2025; CIO reported no beneficial ownership) |
| Vested vs. unvested shares | None disclosed; Form 3 indicates no securities beneficially owned |
| Options (exercisable/unexercisable) | None disclosed; Form 3 shows no derivative securities |
| Shares pledged as collateral | Not disclosed |
| Stock ownership guidelines (officers) | Not disclosed for executives of externally managed BDC |
| Hedging policy | Company’s Code of Ethics does not expressly prohibit hedging transactions by directors/officers/employees |
Employment Terms
| Term | Disclosure |
|---|---|
| Appointment & start date | Board appointed Ashwin Krishnan CIO on July 24, 2025, effective on/around July 25, 2025 |
| Role scope | CIO of MSDL and concurrent CIO roles for PIF, PIF A, LGAM, T Series, SLIF |
| Compensatory arrangement | No specific employment/compensation agreement disclosed with MSDL in the appointment 8-K |
| Related-party transactions | None involving Mr. Krishnan subject to Item 404(a) disclosed |
| Severance provisions (salary+bonus multiples) | Not disclosed |
| Change-of-control economics (single/double-trigger; acceleration) | Not disclosed |
| Non-compete / non-solicit / garden leave | Not disclosed |
| Clawbacks / tax gross-ups | Not disclosed |
| Deferred compensation / pension / SERP | Not disclosed |
Performance & Track Record
| Metric | Q2 2025 | Q3 2025 |
|---|---|---|
| Net investment income ($mm) | $43.7 | $43.7 |
| NII per share ($) | $0.50 | $0.50 |
| Earnings per share ($) | $0.41 | $0.32 |
| NAV per share ($) | $20.59 | $20.41 |
| Debt-to-equity (x) | 1.15x | 1.17x |
| Total investment income ($mm) | $99.5 | $99.7 |
| Portfolio FV ($mm) | $3,785.5 | $3,775.8 |
| CLO closing | — | ~$401mm closed at blended cost ≈ S+1.70% |
Notes:
- As of Sept 30, 2025, portfolio comprised 218 companies, 96.3% first lien debt, with 1.2% of investments at amortized cost on non-accrual; weighted average yield 9.7% (amortized cost) / 9.9% (FV) .
- Capital/liquidity included $2,078.1mm debt outstanding across facilities/notes and $71.7mm in unrestricted cash; $1,396.1mm availability on facilities .
Compensation & Governance Context (Externally Managed BDC)
- Investment Advisory Agreement: base management fee and incentive fee structure payable to MS Capital Partners Adviser Inc.; 2024 fees earned included $25.48mm base (net of waiver) and $37.43mm income-based incentive fee .
- Administration Agreement: Company reimburses Administrator’s allocable expenses for CFO/CCO functions; $215,691 incurred in 2024 .
- Compensation Committee: Independent Directors oversee, but executives receive no direct company pay, so no executive compensation report is produced .
Risk Indicators & Red Flags
- Hedging permitted: Company’s Code of Ethics does not expressly prohibit hedging, which can be viewed as a potential alignment risk if used by insiders .
- Zero direct ownership: CIO’s Form 3 reports no beneficial ownership of MSDL shares, reducing direct equity alignment and lowering near-term insider selling pressure .
- Executive transitions: CEO change in July 2025 (Levin resignation; Occi appointed CEO), with simultaneous leadership changes including CIO appointment—Company states no disagreements underpinning the resignation .
Investment Implications
- Alignment: The CIO holds no reported MSDL shares as of the initial Form 3, and executives are not paid directly by MSDL, so pay-for-performance alignment at the Company level depends on Adviser-level incentives rather than direct company equity or bonuses .
- Execution: Early tenure coincided with steady NII per share ($0.50), slightly lower NAV, disciplined leverage (1.17x), and the closing of a $401mm CLO at competitive cost—positive for funding diversification and spread capture .
- Retention risk: No disclosed employment/severance/change-of-control terms for the CIO at the Company level; as an externally managed BDC, retention hinges on the broader MSIM platform rather than Company-specific contracts .
- Trading signals: Absence of insider share ownership reduces potential insider selling pressure from the CIO; watch for future Forms 4 (purchases or RSU releases) and any policy shifts on hedging/pledging. Dividend stability ($0.50 declared for Q4 2025) and ATM capacity ($300mm) frame capital markets activity; monitor dilution vs. accretion alongside NAV trends .