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Apollo Global Management has limited redemptions from one of its flagship private credit vehicles, becoming the latest investment manager seeking to staunch outflows as wealthy investors retreat from the industry.
The New York-headquartered group said investors sought to pull about $1.6bn from its Apollo Debt Solutions BDC, equal to 11.2 per cent of its net assets of $15bn — well above the 5 per cent threshold that allows Apollo to cap outflows from the fund.
Apollo honoured just under half of the withdrawal requests, according to a letter the fund sent to investors on Monday. Several other money managers, including Morgan Stanley and BlackRock, have made similar moves.
Apollo’s decision to cap redemptions highlights a risk for individual investors who have poured hundreds of billions of dollars into so-called semi-liquid funds. These funds opened private markets up to wealthy individuals, offering access to higher returns historically limited to institutional investors but with a trade-off that liquidity could be limited.
The ability to exit has been increasingly restricted as fund managers stick to caps embedded in the funds. Investors have submitted redemption requests worth $11.7bn across more than half a dozen funds tracked by the FT. So far, only 66 per cent of withdrawals have been met, worth $7.8bn.
Investor scrutiny of the asset class has intensified this year as money managers reassess the impact AI will have on the business models of the enterprise software industry, a sector heavily financed by private credit funds as the companies were purchased in leveraged buyout deals.
Apollo told investors in its fund, which has an investment portfolio worth $25bn, that it received $724mn of new commitments in the quarter. Net flows were roughly flat as the firm fulfilled $730mn of redemptions.
“Today’s decision reflects our ongoing commitment to long-term value creation for the fund’s shareholders,” Apollo said in a letter to investors. “Apollo has long believed that periods of complexity and uncertainty can create some of the most attractive investment opportunities, but only for those with the flexibility to act decisively.”
The fund also posted its first monthly loss in February in more than three years, reporting a -0.07 per cent return. The loss in part reflected a sell-off in more liquid loans, which Apollo uses to mark the value of private loans it holds that do not trade.
“When spreads widen in public markets or within a specific sector, we work closely with independent third-party valuation providers to ensure those conditions are appropriately reflected in our marks,” the firm told investors.
The fund’s return over the past year dropped to 7 per cent, below its long-term average.
Apollo, which managed $938bn at the end of 2025, positioned itself defensively last year as top executives prepared for market turbulence. The firm slashed holdings of riskier software loans and wagered the value of several large loans to software makers would decline in value.
“We also believe we are entering the current period of technological disruption from a position of strength,” the firm said in its letter. “Apollo has consciously chosen to create portfolios that are underweight software exposure relative to the broader private credit markets.”