Apollo caps private credit fund redemptions for third straight quarter

Apollo Global Management's Apollo Debt Solutions BDC (ADS) private credit fund experienced a decline in redemption requests during the third quarter, indicating a potential easing of liquidity pressures in the non-traded private credit funds sector, according to a Reuters report. The $25.9bn fund fulfilled redemption requests equivalent to 5% of its shares, aligning with the typical quarterly redemption limit for many non-traded private credit funds.

Investors from both US onshore and offshore markets submitted redemption requests, with many resubmitting after earlier quarters' requests were not fulfilled. However, the demand for redemptions has eased recently as fund managers process accumulated requests and investor sentiment improves. BlackRock also reported a decrease in withdrawal requests from its private credit funds earlier this month, suggesting a broader sector-wide trend of easing liquidity pressures.

Apollo anticipates receiving around 75% of the capital requested by investors seeking liquidity in 2026 following the latest repurchase payments. The fund received approximately $200m of gross subscriptions through September 1st, and is expected to record net outflows of around $500m for the quarter, representing about 3% of its net asset value.

As of August 31st, the fund's Class I shares had generated a net total return of 8.2%, outperforming leveraged loans by 177 basis points and high-yield markets by 377 basis points.