Apollo private credit fund gives investors only 45% of requested withdrawals
CNBC • • general
Key Points:
- Apollo's flagship private credit fund will limit investor withdrawals this quarter to just under half of the requested amount, reflecting stress in the private credit asset class.
- The fund received redemption requests totaling 11.2% of shares outstanding in Q1, exceeding its 5% quarterly withdrawal cap, which Apollo is maintaining despite competitors like Blackstone relaxing theirs.
- Apollo Debt Solutions BDC plans to return about $730 million to investors on a prorated basis, equating to roughly 45% of requested redemptions, with a net asset value of $15.1 billion as of February 28.
- The fund's net asset value per share declined 1.2% over the past three months but still outperformed the U.S. Leveraged Loan Index, which fell 2.2% in the same period.
- Apollo attributes investor redemptions to broader market concerns about private credit loans, particularly to software companies, but emphasizes its focus on lending to larger, more stable companies.
