Apollo private credit fund redemption requests ease in third quarter

Sept 22 — Asset manager Apollo Global Management recorded lower withdrawal requests at its flagship private ​credit fund in the third-quarter tender offer, suggesting redemption queues are beginning to clear.

Investors in Apollo Debt Solutions BDC (ADS) sought to withdraw ‌roughly 14.7% of shares in the latest tender offer, compared with 16.8% in the prior quarter, ⁠according to a regulatory filing on ​Tuesday.

The $25.9 billion fund will repurchase 5% ⁠of shares, the customary threshold for such vehicles.

The Apollo fund said repurchase ‌requests declined sequentially ‌across both US onshore and offshore investors, and most of them ⁠were investors resubmitting unfulfilled requests from prior ⁠quarters.

Demand from wealth investors to pull money from private credit funds hit record levels this year on concerns about lending standards and AI disruption risks.

However, redemption pressure has recently begun to ease across major non-traded private credit funds as asset managers work through a backlog of ‌unfulfilled withdrawal requests and sentiment improves after a ​turbulent period.

Earlier this month, BlackRock also revealed a decline in redemption requests at its private credit funds.

Most non-traded private credit funds have enforced the customary 5% limit on redemptions this year, keeping withdrawal requests elevated as investors resubmit their unfulfilled requests in following tender offers.

"Following third-quarter repurchase payments, investors who have sought liquidity during 2026 will have received an ​estimated 75% of their requested capital," the Apollo fund said.

During the quarter, ADS ‌received $0.2 billion in gross ‌subscriptions ⁠through September 1. Quarterly net outflows are expected to be roughly $0.5 billion, or 3% of net asset value.

Since inception, ADS' Class I shares have delivered a net total return of 8.2% as of August 31, outperforming leveraged loan ‌and high-yield markets by 177 ​and 377 basis points, respectively.

Data from major ‌vehicles run by Ares ⁠and Blue ​Owl are expected in coming weeks.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by ​Shilpi Majumdar)

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