Apollo Global Management has limited investor withdrawals from its $25bn Apollo Debt Solutions (ADS) fund to 5% of shares after redemption requests exceeded the vehicle’s quarterly cap, according to a report by Bloomberg News.
The firm decided on the cap despite investors seeking to redeem approximately 11.2% of the fund. As a result, redeeming investors are expected to receive roughly 45% of the capital they requested.
The move comes against a backdrop of increased volatility and growing investor scrutiny of private credit markets. Concerns around transparency, underwriting standards and exposure to sectors such as software – where artificial intelligence could disrupt business models – have weighed on sentiment toward the asset class.
Apollo said the decision to limit withdrawals aligns with the fund’s liquidity management approach, aiming to meet redemption requests without adversely impacting portfolio value. The fund, structured as a business development company, typically offers liquidity of up to 5% per quarter and is designed for investors with a longer-term investment horizon.
During the period, ADS recorded approximately $730m in gross outflows, broadly offset by inflows of around $724m.
Apollo noted that the fund is positioned with a bias toward larger borrowers, which it believes are better equipped to navigate periods of market disruption. The firm also highlighted that its portfolios are relatively underweight software exposure compared with the broader private credit market.
Shares in Apollo fell in after-hours trading following the announcement and are down more than 20% year-to-date, reflecting wider pressure across alternative asset managers.
