Ares, Apollo Cap Private Credit Withdrawals as Exodus Grows
Bloomberg.com • • business
Key Points:
- Ares Management Corp. and Apollo Global Management Inc., two major private credit firms, have restricted investor withdrawals from their funds, indicating growing pressure in the $1.8 trillion private credit market.
- The $10.7 billion Ares Strategic Income Fund limited redemptions to 5% of shares despite investor requests to redeem 11.6%, as detailed in a recent shareholder letter.
- Similarly, Apollo Debt Solutions, a $15.1 billion business development company, imposed a 5% withdrawal cap after investors sought to redeem 11.2% of shares.
- These withdrawal limits highlight liquidity challenges and rising investor caution within the private credit sector.
