Morgan Stanley’s SL Investment Fund II Calls $29.7 Million From Unitholders

The private BDC sold roughly 1.5 million common units to existing investors, who are bound to fund each call on as little as five business days’ notice.

October 30, 2026

SL Investment Fund II LLC, a privately offered business development company advised by Morgan Stanley's MS Capital Partners Adviser Inc., has drawn $29.7 million from its investors, issuing approximately 1,516,854 common units in a sale that closed on October 27, 2026.

A Call on Existing Commitments

The fund sent the drawdown notice to its unitholders on October 20, one week before the closing. Under the fund's subscription agreements, each investor commits a set amount of capital and funds it in installments as the fund calls for it, up to the full amount of that investor's commitment, with at least five business days' prior notice. The October call drew on commitments already in place, and the units were sold to the fund's existing unitholders.

The drawdown structure is standard for privately offered BDCs. It lets a fund call committed capital as it finds loans to make, which limits the amount of uninvested cash on its balance sheet. The fund did not say how it plans to use the $29.7 million or how much of its investors' total commitments remains uncalled.

Offering Terms

The units were issued in a private placement exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The fund relied in part on representations in the subscription agreements that each unitholder is an accredited investor. The common units carry a par value of $0.001 each.

Chief Financial Officer David Pessah signed the disclosure on October 29.