Apollo Global Management's private credit fund, Apollo Debt Solutions (ADS) BDC, saw a decline in investor withdrawal requests during the third quarter of 2026. According to a regulatory filing, investors sought to redeem approximately 14.7% of shares, which is a decrease from the 16.8% requested in the preceding quarter. The fund will, as is customary, repurchase 5% of the tendered shares.
This marks a moderation in redemption requests across both U.S. onshore and offshore investors. Industry analysts estimate that a significant portion of the third-quarter requests represent re-tendering of unfulfilled requests from previous quarters, indicating a persistent, though easing, demand for redemptions.
Previously, in the second quarter of 2026, the $26 billion Apollo Debt Solutions fund had faced higher withdrawal pressures, with investors asking to pull 16.8% of shares. At that time, the fund similarly capped repurchases at 5%, leading to net outflows. This earlier surge in redemption requests, which amounted to approximately $2.4 billion, followed an 11.2% request rate in the first quarter of 2026. The second quarter also revealed a regional split, with U.S. onshore clients requesting to pull 4.3% and offshore investors seeking 12.5%.
The ongoing withdrawal requests highlight liquidity concerns within the retail-focused, semi-liquid private credit fund sector. Similar challenges have been observed with other major players, such as Blackstone's $79 billion Blackstone Private Credit Fund (BCRED), which also capped withdrawals at 5% after requests surged to 10% in the second quarter, and Partners Group, which warned of potential redemption curbs. Experts suggest that the current environment is testing the structural integrity of these funds, particularly regarding the ability to offer liquidity on inherently illiquid assets.
