Apollo curbs private credit fund withdrawals amid 17% redemption wave
Apollo It is halting repayments of investors in its main retail-focused private loan fund after it was hit by a nearly 17% surge in withdrawal requests in the second quarter.
The private markets giant said it would set the withdrawal limit at 5% of shares in its Apollo Debt Solutions vehicle after investors withdrew nearly $2.4 billion, or 16.8%, in the three-month period.
“Taken together, we expect net outflow from ADS to be approximately $400 million in the second quarter of 2026 and year-to-date, representing 3% of NAV,” Apollo said. filing with the Securities and Exchange Commission issued on Monday.
It highlighted a “considerable regional divide” in withdrawal requests in the second quarter; About 4.3% of onshore clients in the US wanted to withdraw, while refunds from offshore investors rose to 12.5%.
The move comes after the $26 billion fund, an unlisted business development company that offers wealthy retail investors access to high-yield private credit assets, saw an 11.2% increase in withdrawal requests in the previous quarter.
The fund has a sizeable stake in US software companies. “We believe the challenges are largely confined to the software industry,” Apollo said.
Apollo Global Management.
The increase in redemptions once again highlights the liquidity pressures affecting global private markets this year.
So-called ‘semi-liquid’ private debt instruments have been subject to a wave of redemption pressures this year as investors seek to withdraw their money amid growing concerns about asset quality and funds seek to reconcile the retail wealth channel with the less liquid nature of private assets.
“We’re discovering in real time that without testing the plumbing, you can’t offer near-daily liquidity to truly illiquid assets, and 2026 will be the year those structures are rewritten,” said Sunaina Sinha Haldea, global head of private equity consultancy Raymond James.
Earlier this month, Karataş said it was limiting investors’ withdrawals from its flagship $79 billion Blackstone Private Credit Fund (BCRED) to 5% after rising to 10% in the second quarter.
On the opposite side of the Atlantic, Switzerland Partners Group It recently warned that it may limit redemptions of some private asset instruments following a surge in exit demands.
“The redemption pressure on evergreen private loans is not just a credit story, it’s a structural story,” Haldea told CNBC via email.
He warned that the ‘package for retail and the money will come’ phase in private credit markets was over, adding that evergreen private credit funds were at risk of facing gates, exits and loss of shelf space as fund raising coalesced around private market managers with strong governance, liquidity controls and client education.
