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Apollo Debt Solutions Caps Withdrawals at 5% After 11% Redemption Requests

The step underscores liquidity strains in non-traded funds invested in hard-to-sell private loans.

Overview

  • Apollo said investors asked to redeem about 11.2% of shares in its Apollo Debt Solutions business development company.
  • It will return about 45% of the cash investors requested this quarter, or roughly $730 million, under its 5% limit.
  • The firm said first-quarter money coming in should offset the money going out.
  • These funds let investors cash out a small portion each quarter but hold loans that are slow to sell, which can stress cash when withdrawals jump.
  • Most large U.S. BDCs now trade below asset value, and funds tied to firms such as KKR and Blue Owl have fallen as investors question loan quality and transparency.