Apollo Global Management Inc. has once again capped withdrawals from its largest non-traded private credit fund for retail investors, Apollo Debt Solutions. This decision comes as investors requested to redeem 16.8% of outstanding shares, leading Apollo to limit withdrawals to 5%. This is an increase from the prior period's request rate of 11.2% and reflects ongoing concerns within the broader private credit asset class.
The fund, which manages approximately $25 billion in assets, experienced gross outflow estimates of roughly $700 million for the quarter, significantly outweighing the $300 million in inflows. This marks the second consecutive quarter Apollo has curbed redemptions. The majority of these withdrawal requests, totaling 12.5% of all shares, originated from offshore investors, while US customers requested to pull a slower 4.3%.
Analysts from TD Cowen, led by Bill Katz, view this development negatively for both Apollo and its peers, suggesting that redemption rates are proving uneven. Other firms, including Cliffwater LLC and BlackRock Inc.'s HPS Corporate Lending Fund, have also implemented 5% caps after facing redemption requests of 17% and 13% respectively. Additionally, Partners Group, Blackstone's BCRED, Morgan Stanley's North Haven Private Income Fund, and Blue Owl have also seen elevated exit requests from their respective funds.
