economy
Apollo curbs withdrawals after exit requests hit 17%, reigniting fears over private credit liquidity
Apollo is capping investor redemptions in its main retail-focused private credit fund after exit requests hit 17%.
TL;DR
- Apollo has capped withdrawals from its Apollo Debt Solutions private credit vehicle at 5% due to redemption requests soaring to 17% ($2.4 billion) in the second quarter.
- This move reflects ongoing liquidity concerns in retail-focused, semi-liquid private credit funds, with Blackstone and Partners Group also implementing withdrawal restrictions.
- Industry professionals indicate that redemption pressures are 'testing the plumbing' of these credit vehicles.
- Apollo noted a significant regional difference in redemption requests, with U.S. onshore clients requesting 4.3% and offshore investors requesting 12.5%.
- The $26 billion fund, a non-traded business development company, offers wealthy retail investors access to higher-yielding private credit assets.