Apollo Global Management LLC has limited withdrawals from its flagship private credit fund to just 45% of investor requests, citing a 5% quarterly cap. The fund, Apollo Debt Solutions BDC, received redemption requests totaling 11.2% of shares outstanding in the first quarter, far exceeding the cap. The fund will return approximately $730 million to investors, prorated based on the cap. The fund's net asset value stood at $15.1 billion as of February 28, 2024.
Apollo defended its decision, stating it prioritizes long-term value creation and fiduciary duty to all shareholders. The fund's net asset value per share declined 1.2% over the past three months, but it outperformed the U.S. Leveraged Loan Index, which fell 2.2%. The withdrawals reflect broader concerns in the private credit sector, particularly regarding loans to software companies. Apollo has emphasized its focus on larger, more stable companies to differentiate itself from rivals facing similar liquidity pressures.