Apollo is ending investor redemptions in its leading retail-focused private credit fund after being rocked by a nearly 17% surge in withdrawal requests during the second quarter.
The private markets giant said it would limit withdrawals to 5% of shares in the Apollo Debt Solutions vehicle, after investors rushed to withdraw about $2.4 billion, or 16.8%, during the three-month period.
“Overall, we expect net ADS outflows to be approximately $400 million for the second quarter of 2026 and year-to-date, representing 3% of net asset value,” Apollo said in a statement. deposit with the Securities and Exchange Commission released Monday.
It highlighted a “notable regional divide” in withdrawal requests in the second quarter, with US domestic clients seeking withdrawals of around 4.3%, while redemptions from offshore investors jumped to 12.5%.
The move comes after the $26 billion fund – a non-traded business development company that offers wealthy retail investors exposure to higher-yielding private credit assets – saw an 11.2% rise. withdrawal requests in the previous quarter.
The fund has significant exposure to US software companies. “We believe the challenges are largely limited to the software sector,” Apollo said.
Stock chart iconStock chart icon
Apollo Global Management.
The surge in buybacks once again highlights the liquidity pressures that have engulfed global private markets this year.
So-called “semi-liquid” private debt vehicles have been subject to a wave of redemption pressure this year, as investors seek to cash out amid growing concerns about asset quality and as funds struggle to reconcile the less liquid nature of private assets and the retail wealth channel.
“We are discovering in real time that it is impossible to offer near-daily liquidity in truly illiquid assets without testing the plumbing, and 2026 is the year these structures will be rewritten,” said Sunaina Sinha Haldea, global head of private capital advisory at Raymond James.
Earlier this month, black stone said it has limited investor withdrawals from its flagship $79 billion Blackstone Private Credit Fund, or BCRED, to 5% after jumping to 10% during the second quarter.
On the other side of the Atlantic, Switzerland Partner Group recently warned it could slow down buybacks in several of its private asset vehicles following a sharp increase in exit requests.
“Redemption pressure in evergreen private credit is not just a credit story, it’s a structural story,” Haldea told CNBC via email.
She warned that the “pack it for retail and the money will come” phase in private credit markets is over, adding that persistently weaker private credit funds are likely to face barriers, exits and loss of storage space, as fundraising consolidates around private market managers with strong governance, liquidity controls and client education.
