Apollo's $26 billion private credit fund caps withdrawals at 5% after redemption requests jump to 17%
Apollo Global Management capped quarterly withdrawals at 5% from its $26 billion private credit fund after redemption requests reached 17% in the second quarter, the first concrete sign of liquidity stress in shadow banking.
Apollo Global Management capped withdrawals at 5% from its $26 billion flagship vehicle, Apollo Diversified Credit Fund, after quarterly redemption requests hit 17%. It is the first « gate » imposed on a retail-and-institutional private credit product in over a decade.
Fitch Ratings analyst Margaret Patel said the move « signals that investors are waking up to liquidity weaknesses in shadow banking. » Industry-wide private credit assets have ballooned to $2.5 trillion, and regulators have warned for years about opacity and debt-market fragilities.
APO shares dropped 4.8% by 2:30 p.m.; Blackstone fell 3.1% and KKR slipped 2.7%. The two-year Treasury yield eased 8 basis points and the dollar index weakened 0.4%. The SEC announced it will open a new probe into the liquidity terms of private credit funds.
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