Apollo and Ares Signal Stabilizing Private Credit Market

Apollo Global Management said redemption requests on its non‑traded private credit fund have fallen to about half of the level seen at the last redemption window, and it aims to introduce daily pricing for its funds by October. Ares Management was forced to shrink a planned €1 billion private‑credit vehicle to roughly €400 million after investors demanded larger discounts on loan valuations.

Quarter‑two results from publicly traded business development companies show the broader private‑credit market, valued at about $1.8 trillion, is stabilising. Ares Capital’s non‑accrual loans rose 15% quarter‑on‑quarter but remain below historic averages, while Blue Owl Capital described the second quarter as “much more stable.” Blackstone Secured Lending Fund recorded its biggest NAV decline in six years, attributing losses mainly to portfolio markdowns. The market continues to face pressure from AI‑related exposures, and the Federal Reserve plans a pilot survey of the private‑credit sector later this year.