Apollo private credit fund redemption requests ease in third quarter

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.

The $25.9 billion fund will repurchase 5% of shares, the customary threshold for such vehicles.

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 US 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

"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 August ⁠31, outperforming leveraged loan and ‌high yield markets by ​177 and 377 basis points, respectively, over the same period.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by ‌Shilpi Majumdar)

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