Funds Restrict Withdrawals, Raising Risk Concerns About Private Credit Market

The Morgan Stanley worldwide headquarters building in New York on Oct. 21, 2009. Timothy A. Clary/AFP via Getty ImagesConcerns about the stability of the fast-growing private credit market mounted last week as more investment funds restricted investor withdrawals, contributing to volatility on Wall Street.Morgan Stanley revealed in a letter to investors on March 12 that it had limited investor withdrawals from its $8 billion non-traded business development company, North Haven Private Income Fund LLC, causing its stock to fall by more than 4 percent following the news.