Apollo Global Management Inc. has again restricted investor withdrawals from its largest non-traded private credit fund for retail investors, Apollo Debt Solutions, which manages approximately $25 billion to $26 billion in assets. The fund capped withdrawals at 5% of outstanding shares on Monday after receiving redemption requests totaling 16.8% in the second quarter of 2026. This marks a significant increase from the 11.2% investors sought to pull in the previous quarter.
The decision to limit redemptions comes amidst ongoing concerns about liquidity in the private credit asset class, particularly for semi-liquid funds catering to retail investors. The nearly 17% in withdrawal requests, amounting to roughly $2.4 billion, will result in gross outflows of $700 million and net outflows of approximately $400 million for the second quarter of 2026, representing 3% of the fund's Net Asset Value (NAV). Notably, a regional split was observed, with U.S. onshore clients requesting about 4.3% in withdrawals, while offshore investors accounted for a higher 12.5%.
This move by Apollo follows similar actions by other major private credit managers, such as Blackstone and Partners Group, who also imposed redemption limits earlier in 2026. Industry experts like Sunaina Sinha Haldea of Raymond James warn that the current pressures are "testing the plumbing" of these credit vehicles, suggesting a re-evaluation of structures that offer near-daily liquidity on illiquid assets. Despite the retail market's jitters, institutional capital, representing less than a quarter of the private credit market, is reportedly reaffirming its commitment to the sector, with some considering increased allocations to capitalize on scarcer capital.
