Apollo Debt Solutions BDC is limiting redemptions from a private credit fund for the third straight quarter. The fund told investors it would cap withdrawals at 5% of outstanding shares after 14.7% sought to pull their cash. The fund has substantial sources of liquidity and can "add leverage modestly when warranted" as it works through outstanding repurchase requests.
- Apollo is limiting investor redemptions from a private credit fund for the third consecutive quarter due to a significant percentage of investors seeking to withdraw their capital.
- This move reflects a broader trend in the private credit market, driven by investor concerns over loan quality and exposure to certain business sectors.
- Despite the redemption caps, the fund asserts it has sufficient liquidity and can utilize leverage to manage outstanding repurchase requests.
Topics: Asset types, Risk default, Scalability, Private credit high yield, Credit counterparty risk, Market depth liquidity
Tags: #apollo #privatecredit #redemptions #fundliquidity #investorwithdrawals #directlending #assetmanagement #loanquality #leverage
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