Apollo private credit fund redemption requests ease in third quarter

"Following third-quarter repurchase payments, investors who have sought liquidity during 2026 will have received an estimated 75% of their requested capital," the Apollo fund said in an investor update.

Since inception, ADS has delivered a net total return of 8.2% for Class I shares as of Aug. 31, outperforming leveraged loan and high yield markets by 177 and 377 basis points, respectively, over the same period.

Demand from wealth investors to pull money from private credit funds hit record levels this year, as a barrage of negative headlines fueled concerns about lending standards and AI disruption risks.

However, redemption pressure has recently begun to ease across major non-traded private credit funds as asset managers work through backlog of unfulfilled withdrawal requests and sentiment in the wealth channel improves after a turbulent period.

The Apollo fund said repurchase requests declined sequentially across both U.S. onshore and offshore investors in the latest share repurchase program, and a majority of them were investors resubmitting their unfulfilled requests from prior quarters.

Most non-traded private credit funds have enforced the customary 5% limit on redemptions this year, keeping withdrawal requests elevated as investors resubmit their unfulfilled requests in following tender offers.

Sept. 22 (Reuters) - Asset manager Apollo Global Management recorded lower withdrawal requests at its flagship private credit fund in the third-quarter tender offer, suggesting redemption queues are beginning to clear.

Investors in Apollo Debt Solutions BDC (ADS) sought to withdraw roughly 14.7% of shares in the latest tender offer, compared with 16.8% in the prior quarter, according to a regulatory filing on Tuesday.