Apollo Caps Redemptions at 5% in Private Credit Fund

Apollo Global Management, a major asset management firm based in New York, has restricted investor withdrawals from its flagship private credit fund, approving just under half of the redemption requests received in the first quarter. The decision, disclosed in a Securities and Exchange Commission filing late Monday, underscores growing liquidity pressures in the private credit sector amid heightened investor caution.

The Apollo Debt Solutions business development company, a nontraded vehicle with a net asset value of $15.1 billion as of February 28, faced redemption requests equivalent to 11.2 percent of its outstanding shares, or approximately $1.6 billion. Under the fund's terms, Apollo capped outflows at 5 percent of shares outstanding, an industry standard that the firm chose to maintain despite some competitors relaxing their limits. As a result, the fund will return about $730 million to redeeming investors on a prorated basis, fulfilling roughly 45 percent of the total requests sought.

Apollo described the move as a measure to protect long-term value. "Today's decision reflects our ongoing commitment to long-term value creation for the fund's shareholders," the firm...