Apollo Limits Withdrawals From $26B Private Credit Fund
Apollo Global Management has limited investor withdrawals from its $26 billion private credit fund after redemption requests surged, highlighting the growing tension between liquidity demands and long-term investment strategies in private markets.
Apollo Debt Solutions (ADS), a private credit fund primarily marketed to high-net-worth investors, said it would honor redemptions equal to 5% of outstanding shares after investors requested withdrawals totaling approximately 16.8% of the fund.
The payouts will result in gross outflows of roughly $700 million, exceeding estimated inflows of $300 million, according to preliminary figures disclosed in a regulatory filing. Net outflows for the year are expected to total about 3% of the fund’s assets.
The increase in withdrawal requests marks a sharp jump from the prior quarter, when investors sought to redeem about 11.2% of the fund’s shares.
ADS, which offers investors periodic liquidity through quarterly redemption windows, joins a growing group of semi-liquid alternative investment vehicles that have implemented redemption limits as investors seek greater flexibility amid changing market conditions.
Despite the rise in withdrawals from wealth channel investors, Apollo said institutional demand for private credit remains strong.
The firm said it expects fundraising for its institutional direct lending strategies to exceed fundraising from the wealth management channel this year, suggesting that large pensions, insurers and other institutional investors continue to view private credit as an attractive source of income and diversification.
