Apollo caps credit fund redemptions at 5% amid 14.7% requests

Apollo Global Management is limiting redemptions from its flagship private credit fund for the third consecutive quarter. The firm notified shareholders on Tuesday that it will cap quarterly withdrawals from Apollo Debt Solutions BDC at 5% of outstanding shares after receiving redemption requests totaling 14.7% of its stock, according to a letter to investors reported by Bloomberg.

The requests mark a modest decline from the 16.8% sought in the prior quarter across the 26 billion dollar fund. Management estimated that the majority of third-quarter requests were unfulfilled orders carried over and re-tendered from earlier quarters rather than fresh exit demands. The vehicle, which has generated an 8.2% return since its launch in 2022, noted that investors seeking an exit this year will have received roughly 75% of their requested capital back.

The withdrawal pressure comes amid wider constraints in the 1.8 trillion dollar private credit market, where rivals including BlackRock Inc. and Cliffwater LLC have also instituted redemption limits. Higher interest rates and growing concerns over software loan exposure have created industrywide liquidity friction among institutional and retail investors.