Private credit giant Apollo Global Management (APO) is limiting investor redemptions in its main retail-focused fund after withdrawal requests surpassed 17%.
Apollo said it is limiting withdrawals to 5% of shares in the “Apollo Debt Solutions” private credit fund after investors rushed to pull out $2.4 billion U.S. in the current second quarter.
“We expect net outflows will be approximately $400 million for the second quarter of 2026 and year-to-date, representing 3% of NAV,” Apollo said in a regulatory filing.
The move to cap withdrawals comes after the $26 billion U.S. fund, which offers retail investors exposure to higher-yielding private credit assets, has seen a spike in redemption requests.
Analysts say the situation highlights the liquidity pressures that have struck the private credit market this year.
Semi-liquid private debt funds have been hit with a wave of redemption requests as investors look to pull their money out amid growing anxieties over asset quality.
Earlier this month, rival private credit firm Blackstone (BX) restricted investor withdrawals from its $79 billion U.S. private credit fund to 5% after redemption requests surged to 10%.
Overseas, Switzerland’s Partners Group (SWX: PGHN) has warned that it may curb redemptions in several of its private asset vehicles following a surge in redemption requests.
Retail investors have been spooked by growing signs of trouble among software companies held in private credit funds.
Software firms are being rerated and their valuations plunging as concerns grow that the sector will be permanently disrupted by artificial intelligence (A.I.).
APO stock has declined 8% this year to trade at $135.21 U.S. per share.
