Apollo Global Management is taking steps to increase transparency in its private credit business, aiming to address investor concerns and market scrutiny amid rising redemption requests across the sector, according to a report by Bloomberg.
The report cites John Zito, co-president of Apollo’s asset management division, as revealing that the firm, which manages $938bn in assets, plans to begin reporting net asset values for its private credit funds on a monthly basis, with the goal of eventually providing daily NAVs alongside third-party valuations.
The initiative comes as private credit faces pressure from investors worried about defaults and the potential impact of artificial intelligence on certain borrowers. Competitors such as BlackRock have recently restricted redemptions in their private credit vehicles, highlighting the market’s vulnerability.
Apollo’s funds, including its BDC, Apollo Debt Solutions, and evergreen vehicles for individual investors, allow periodic withdrawals. Its exchange-traded fund, launched with State Street Corp, already provides daily pricing and includes some private debt.
The firm has also expanded its market-making capabilities, syndicating portions of the loans it originates and trading nearly $10bn in high-grade private loans last year. Apollo is building a marketplace for real-time pricing, aiming to lead the sector in facilitating secondary trades and offering liquidity.
