Apollo Debt Solutions BDC to Return 45% of Q1 Redemption Requests

Apollo Global Management will fulfill roughly 45% of first-quarter redemption requests in Apollo Debt Solutions BDC, returning approximately $730 million to investors after withdrawal demand significantly exceeded the fund’s quarterly cap.

In a letter to shareholders late Monday, the asset management giant revealed that the non-traded perpetual-life business development company had received redemption requests equal to 11.2% of its outstanding shares for the first quarter of 2026 – more than double its 5% quarterly cap.

Apollo said it will fulfill redemption requests on a prorated basis.

Despite the high withdrawal demand, the fund saw approximately $724 million in new subscriptions during the same period, leaving net flows for the quarter roughly flat. Apollo confirmed it intends to maintain the 5% cap for the following quarter.

The reduced redemptions come amid what the company described as “heightened market volatility and increased scrutiny to private credit as an asset class.” Apollo executives emphasized that the fund’s performance remains robust despite broader market repricing. The BDC had a total net asset value of $15.1 billion as of Feb. 28, 2026.

Other key metrics reported by Apollo for the fund include:

• Net total return: +1% over the past three months, outperforming the U.S. Leveraged Loan Index by 145 basis points;
• NAV movement: A modest decline of -1.2% in net asset value per share, compared to a -2.2% decline for the U.S. Leveraged Loan Index; and
• Borrower strength: Underlying portfolio companies grew annual revenue and earnings before interest, taxes, depreciation, and amortization by 8% and 11%, respectively.

Apollo’s decision to maintain its 5% cap stands in contrast to some industry rivals. Blackstone Private Credit Fund, or BCRED, has relaxed its caps to satisfy investor demand. Apollo labeled its quarterly liquidity framework as “intentional,” arguing that preserving flexibility is vital for long-term value creation in complex market environments.

The firm also sought to differentiate the BDC from rivals by highlighting its portfolio construction. The company said approximately 100% of the portfolio is first lien senior secured debt – the highest among its peers – with a heavy focus on large-cap corporate borrowers rather than more volatile segments.

While some investors have expressed concern over private credit’s exposure to the software sector, Apollo reported that software remains its single largest sector at 12.3% of loans, though it maintains this exposure is 20% to 30% lower than that of its peer set.

The BDC’s portfolio had a fair value of more than $25 billion in assets as of early 2026, the company said.

Visit the AltsWire directory page.