Apollo Debt Solutions BDC Net Assets Fall to $13.5B as Repurchases Outpace Sales
By Staff
Apollo Debt Solutions BDC’s net assets fell about 3.5% in the third quarter to $13.51 billion as of Sept. 30, from $14 billion as of June 30, as share repurchases at the nontraded business development company exceeded new sales.
Net capital share transactions reduced net assets by about $454.1 million during the quarter, compared with an increase of $1.18 billion a year earlier. The BDC repurchased about $698 million of shares across its three classes, net of early repurchase deductions, including $626.6 million of Class I shares, while Class I sales totaled $84.7 million. Redemption requests in the third quarter eased to 14.7% of shares, nearly triple the fund’s 5% cap, as AltsWire reported in September. The fund accepted 29.4 million of the 86.7 million shares tendered in the offer, which expired Sept. 14, or about 34%, on a pro rata basis, and paid $698.3 million to tendering shareholders on or about Oct. 30.
Net asset value per share was $23.78 for each share class as of Sept. 30, down from $23.83 as of June 30 and $24.40 at the end of 2025. Net investment income was $302.2 million for the quarter, compared with $304.0 million in the second quarter. The annualized distribution rate in September was 9.06% for Class I shares, 8.81% for Class D shares, and 8.22% for Class S shares.
The portfolio’s fair value rose to $25.54 billion from $25.37 billion. Apollo made $2.83 billion of new investments during the quarter, sold $1.67 billion, and received $1 billion in repayments. The number of portfolio companies fell to 377 from 399 at the start of the quarter. First-lien secured debt made up 99.3% of the portfolio, with a weighted-average yield at amortized cost of 8.8%.
Investments on non-accrual status represented 0.5% of the portfolio at fair value as of Sept. 30, up from 0.3% at the end of 2025. Payment-in-kind interest made up 3.3% of total investment income in the third quarter, down from 3.5% in the second quarter but up from 2.7% a year earlier. Long-term debt rose to $12.94 billion from $12.15 billion three months earlier, and Apollo reported a net leverage ratio of 0.85 times as of Sept. 30. The BDC expanded its credit facility to $3.99 billion in August.
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