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Apollo Global Caps Private Credit Fund Withdrawals as Requests Spike

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Apollo Global Caps Private Credit Fund Withdrawals as Requests Spike

Apollo Global Management (APO) has restricted investor redemptions for its private credit fund Apollo Debt Solutions following a surge in share repurchase requests from stakeholders.

The alternative asset manager limited withdrawals to 5% of outstanding shares in Apollo Debt Solutions, about $700 million of gross outflows, after shareholders requested the repurchase nearly 17% of outstanding shares as of March 31, according to a filing on Monday with the US Securities and Exchange Commission.

"Taken together, we expect net outflows from (Apollo Debt Solutions) will be approximately ($400 million) for the second quarter of 2026 and year-to-date, representing 3% of (net asset value)," the firm said in the filing.

Shares of Apollo fell 3.2% in Tuesday trade, extending their year-to-date decline to about 9.5%.

The surge in requests was driven primarily by offshore investors, who sought to redeem 12.5% of shares, while US repurchase requests slowed to 4.3%, Apollo said.

In May, Apollo reported first-quarter earnings that exceeded analysts' estimates as revenue declined year-over-year and fell short of Wall Street's view.

"Consistent with industry trends within (business development companies), we saw an uptick in redemption requests at (Apollo Debt Solutions), though it's worth noting that 94% of the fund's investors did not submit a redemption request," President Jim Zelter said during the first quarter earnings call, according to a FactSet transcript.

Earlier in June, BlackRock's (BLK) HPS Corporate Lending Fund said it received repurchase requests totaling about 13% of outstanding shares in the second quarter and would fulfill requests for 5% of shares

Price: $131.59, Change: $-3.62, Percent Change: -2.68%

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