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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