Truffle Hound Capital Closes Out Its Entire Private Credit Sleeve

1 hour ago 4

Seena Hassouna, The Motley Fool

Sun, May 10, 2026 astatine 10:00 AM CDT 4 min read

On May 7, 2026, Truffle Hound Capital, LLC sold retired its full involvement successful Morgan Stanley Direct Lending Fund (NYSE:MSDL), with an estimated transaction worth of $4.95 cardinal based connected quarterly mean pricing.

Sold 320,000 shares, with an estimated commercialized worth of $4.95 cardinal based connected mean pricing for the quarter
Quarter-end presumption worth decreased by $5.27 million, reflecting some trading enactment and banal terms changes
Transaction worth represented 1.28% of the fund’s 13F assets nether management
Post-trade, the money reports zero shares and nary remaining presumption successful MSDL
The presumption had accounted for 1.4% of AUM arsenic of the anterior quarter, signaling a afloat exit from a antecedently notable holding

What happened

According to a SEC filing dated May 7, 2026, Truffle Hound Capital, LLC afloat liquidated its presumption successful Morgan Stanley Direct Lending Fund (NYSE:MSDL) by selling 320,000 shares. The estimated transaction value, based connected the mean closing terms for the archetypal 4th of 2026, was astir $4.95 million. The fund’s involvement went from 320,000 shares to zero, eliminating its vulnerability to the company.

What other to cognize

The money afloat sold retired of MSDL; the presumption was antecedently 1.4% of AUM successful the anterior 4th and is present zero
Top holdings aft the filing:
- NYSE: AMLP: $12.63 cardinal (7.7% of AUM)
- NASDAQ: KSPI: $8.15 cardinal (5.0% of AUM)
As of May 6, 2026, MSDL shares were priced astatine $15.69, down 8.0% connected a full instrumentality ground implicit the past year, underperforming the S&P 500 by 41.1 percent points

Company overview

Metric

Value

Revenue (TTM)	$290.09 million
Net income (TTM)	$122.09 million
Dividend yield	12.43%
Price (as of marketplace adjacent May 6, 2026)	$15.69

Company snapshot

MSDL offers straight originated elder secured word loans, including archetypal and 2nd lien loans, chiefly to middle-market companies.
The money operates arsenic a concern improvement and concern institution that engages successful lending to middle-market companies.
It lends to middle-market companies.

Morgan Stanley Direct Lending Fund specializes successful providing tailored recognition solutions to middle-market companies, leveraging its origination capabilities and expertise successful elder secured lending. The company’s strategy focuses connected straight sourced loans. With a beardown dividend output and accordant profitability, the money serves the backstage recognition marketplace segment.

What this transaction means for investors

What stands retired successful the filing isn't the MSDL exit connected its ain — it's that Truffle Hound besides closed retired New Mountain Finance(NASDAQ:NMFC) and PennantPark Floating Rate Capital(NYSE:PFLT) successful the aforesaid quarter. All 3 are concern improvement companies, a operation that pools superior to lend straight to private, mid-sized businesses successful speech for yield. Three of them gone successful a azygous filing, with nary nationalist mentation from the fund. The communal thread is visible; the rationale isn't. For anyone evaluating MSDL connected its ain terms, that signifier is context, not a signal. The much meaningful inputs are nett plus worth per share, non-accrual rates connected the indebtedness book, and whether the organisation is covered by nett concern income. A tiny money exiting a insignificant presumption doesn't determination immoderate of those needles — and those are the numbers that really find whether the output is worthy holding.

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