Apollo Debt Solutions BDC Reports 9.74% Annualized Distribution Rate
Apollo Debt Solutions BDC – a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management – reported a 9.74% annualized distribution rate for its Class I shares in June 2025, alongside total net returns of 2.28% for three months and 8.83% for one year as of June 30, 2025. The fund’s aggregate NAV was $13.1 billion.
The net asset value per Class I share stood at $24.60 at the close of June, slightly down from $24.90 a year prior. Shares were originally priced at $25 each.
During the first half of 2025, the BDC originated approximately $5.1 billion of private debt investments, with a focus on large cap issuers. The fund’s new directly originated investments had a weighted average spread of 498 basis points. During the first half of 2025, approximately 100% of the fund’s new directly originated investments funded were first lien and approximately 97% were floating rate.
The second quarter of 2025, according to Apollo, brought a much-needed “éclaircissement,” or a clearing up of something obscure, to markets. After a first quarter clouded by uncertainty, particularly surrounding trade policy, the company said a degree of clarity emerged.
According to the BDC, persistent market volatility reinforced the value of private capital solutions and keeping the direct lending opportunity robust. Apollo observed instances, particularly in late April, where headline-driven market dislocations favored direct lenders over traditional banks. Sponsors capitalized on these windows, leveraging volatility in deal negotiations. For example, Thoma Bravo executed a significant acquisition of Jeppesen from Boeing, backed by Apollo financing, capitalizing on post-Liberation Day market weakness.
While overall capital markets activity slowed in the second quarter, direct lending continued to scale. The total value of private jumbo deals (over $1 billion) declined 20% year-over-year in the first half of 2025, with the number of deals falling 65%. However, five of those transactions exceeded $4 billion, highlighting large sponsors’ continued reliance on direct lenders for size and certainty when public markets or banks face dislocation.
Apollo emphasized its disciplined approach, focusing on larger issuers and pushing back on deal terms or risk profiles that don’t align with its core strategy. The firm believes smaller companies, facing earnings pressure and structural disadvantages, offer unattractive risk/reward, with minimal incremental spread for the added risk.
According to the company, a significant milestone for it and Apollo’s broader direct lending platform came in late April with the pricing of an inaugural $500 million private credit collateralized loan obligation for Apollo Debt Solutions: ADL CLO 1. The BDC said the activity expanded its “financing toolkit and establish[ed] a scalable structure for future issuance.”
Made possible by its 2022 merger with Athene, Apollo often invests significantly in its own funds. Over 80% of the BDC’s portfolio invests alongside other Apollo direct lending funds where Apollo/Athene also have exposure.
Recent transactions include an approximately £500 million first-lien term loan to support Cinven’s investment into Grant Thornton UK, the sixth largest accounting and advisory services firm in the United Kingdom; and a $235 million first-lien term loan to Eagle Railcar Services, a provider of railcar repair, maintenance, and related fleet services across North America. The BDC participated in both transactions alongside other Apollo-managed funds.
Looking forward, the BDC emphasized and predicted the influence of generative AI, or Gen AI, on credit markets as well as opportunities in European private credit. Apollo views this market as rapidly developing, with the potential to rival the United States in scale, offering attractive risk-adjusted returns and meaningful geographic diversification.
“GenAI and European credit represent clear areas of opportunity in our opinion – but they’re just part of a broader, more selective investment landscape,” Apollo concluded.
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