Apollo Global Management caps private credit fund redemptions

Apollo Global Management is limiting redemptions from its Apollo Debt Solutions private credit fund for the third consecutive quarter. The decision follows requests from 14.7% of investors to exit the fund, a decrease from 16.8% in the previous period.

To manage liquidity, the fund is capping withdrawals at 5% of outstanding shares. While the fund recorded approximately $200 million in gross inflows during the third quarter, it spent $700 million to repurchase shares, leading to expected net outflows of about $500 million, or 3% of the net asset value. Apollo noted that many redemption requests were repeat submissions from investors whose previous requests were not fully met.

This trend reflects broader pressures within the $1.8 trillion direct lending market, where investors have increasingly sought to pull cash due to concerns regarding loan quality and exposure to legacy software businesses. Apollo’s actions mirror those of industry peers, including BlackRock and Cliffwater, who have also implemented withdrawal restrictions in response to market volatility.