Apollo Debt Solutions BDC Reports Special Distributions, Various Lending Activities

Apollo Debt Solutions BDC – a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management – announced an aggregate net asset value of $12.1 billion as of April 30, 2025; the fair value of its investment portfolio was approximately $18.5 billion; and it had approximately $5.8 billion of principal debt outstanding.

This results in a debt-to-equity leverage ratio of approximately 0.48x and a net leverage ratio of approximately 0.51x.

The aggregate NAV highlighted at the end of April was a 6.1% increase from Dec. 31, 2024’s $11.4 billion.

The BDC fund reported that its Class I, Class S, and Class D shares had a NAV per share of $24.58, an approximate 0.28% decrease from $24.65 recorded on March 31, 2025. Shares were originally priced at $25 each.

Despite the marginal decrease in per share NAV, Class I common shares showed positive returns: 0.52% for the one-month period, 1.42% for three months, and 2.1% year-to-date. Over longer horizons, the performance was stronger, with an 8.95% return for the one-year period, 9.3% over three years, and an annualized inception-to-date return of 8.58% since the fund’s launch in January 2022.

Investors are also benefiting from competitive distributions. As of May 22, 2025, the annualized distribution rate for Class I common shares, which includes a distribution declared on that date and a special distribution announced on March 24, 2025, reached 9.77%.

Aforementioned, the BDC reported that its board had declared special distributions totaling $0.06 per share to be distributed in three consecutive monthly payments of $0.02 per share. Payments were or will be made to shareholders of record as of April 30, May 30, and June 30, 2025, on or around May 29; June 27; and July 29, 2025, respectively. The special distributions will be paid in cash or reinvested in shares of the fund for shareholders participating in the fund’s distribution reinvestment plan.

The BDC’s investment portfolio is spread across 347 portfolio companies and 53 industries. According to the company, a key highlight of its portfolio strategy is its significant allocation to secure debt instruments; approximately 100% of investments are in first lien debt, and around 96% are in floating rate debt, based on fair market value.

The company’s weighted average earnings before interest, taxes, depreciation, and amortization of directly originated debt investments was reported at $265 million. The portfolio’s overall weighted-average net loan-to-value stood at 39%, with a weighted average yield at an amortized cost of 9.31%. Weighted-average net leverage was 4.7x, and interest coverage was 2.3x. As of April 30, 2025, there were six issuers on non-accrual status, which represented approximately 0.2% of the overall portfolio based on fair market value.

As of the same reporting period, the BDC had approximately $2.7 billion of excess availability under its secured funding facilities.

Leveraging its relationships and underwriting capabilities, the BDC reported the following transaction activities in April:

• Omega Healthcare: Apollo served as the sole lender on a $725 million first lien term loan to Omega Healthcare, a revenue cycle management service provider. This transaction was part of an upsize and refinancing of Omega’s existing facility, according to the BDC.
• MRO Holdings: Apollo acted as the sole lead arranger on the refinancing of a $790 million first lien term loan to MRO Holdings, North America’s largest airframe maintenance provider, according to the BDC. Apollo’s role as an incumbent lender included repricing the existing term loan, extending its maturity, and adding a new revolving credit facility.
• Grant Thornton UK: Apollo participated in a £500 million first lien term loan to Grant Thornton UK, an audit, tax, and advisory firm. The BDC participated in the transaction alongside other Apollo-managed investment funds.

The fund is currently publicly offering on a continuous basis up to $10 billion in shares. As of April 30, 2025, it had sold 240.1 million shares for a total of approximately $5.9 billion. Additionally, it has sold approximately 289.6 million unregistered shares as part of the private offering for a total of more than $7.09 billion.

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