Apollo Private Credit Fund Limits Redemptions for the Third Consecutive Quarter, 14.7% of Shares Requested for Exit

Apollo Global Management's Apollo Debt Solutions BDC (ADS) has reached its liquidity limit in the latest quarter, receiving redemption requests equivalent to 14.7% of its outstanding shares, but only repurchasing 5% of those shares. This marks the third consecutive quarter that the fund has processed exit requests at its limit. ADS has a size of approximately $25.9 billion, and the latest redemption demand has decreased from 16.8% in the previous quarter, yet it remains nearly three times the amount available for repurchase. ADS is a non-traded BDC, where investors can only apply for exits during quarterly repurchase windows, with the fund repurchasing a maximum of about 5% of its issued shares each quarter. Currently, the immediate exit demand that can be met is about one-third, and actual allocations will also be affected by pending applications. Apollo stated that most of the redemption requests this quarter came from investors whose previous requests were not fully met, rather than all being new withdrawals. It is expected that after this round of repurchases, investors who applied for liquidity within 2026 will cumulatively receive about 75% of their requested funds; approximately $200 million in new subscriptions flowed in during the third quarter, with plans to repurchase about $700 million in shares, and net outflows are expected to be around $500 million, equivalent to 3% of net asset value. The decline in redemption demand indicates a slight easing of liquidity pressure in private credit, but the fact that the limit has been reached three times still shows that the exit queue has not been fully digested.

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