Apollo Global Management (APO.N) has once again capped withdrawal requests from its flagship private credit fund, Apollo Debt Solutions BDC, for the third quarter. Investors in the fund sought to withdraw approximately 14.7% of their shares, a decrease from the 16.8% requested in the prior quarter. Despite this, Apollo will repurchase only 5% of shares, which is the customary threshold for such vehicles.
This move follows a trend from earlier in the year where the fund also limited withdrawals. In the second quarter of 2026, Apollo Debt Solutions, which had around $26 billion in assets at the time, capped redemptions at 5% after requests surged to nearly 17%, or $2.4 billion. This resulted in expected net outflows of approximately $400 million for the second quarter and 3% of net asset value year-to-date.
The redemption requests in the second quarter showed a notable regional split, with U.S. onshore clients requesting to pull out about 4.3%, while offshore investor redemptions jumped to 12.5%. This persistent capping of withdrawals highlights ongoing liquidity concerns within the retail-focused, semi-liquid private credit fund market. Other firms, such as Blackstone and Partners Group, have also faced similar pressures and restrictions on withdrawals from their private credit funds this year. Industry experts note that these redemption pressures are testing the operational structures of such credit vehicles, especially given the illiquid nature of the underlying assets.
Despite the concerns in the retail wealth channel, institutional investors are reportedly reaffirming their commitment to private credit, with some even looking to increase their allocations to capitalize on scarcer capital in the market. The retail wealth component makes up less than a quarter of the overall private credit market, suggesting a divergence in sentiment between institutional and retail investors regarding the asset class.
