Apollo Global Management and Ares Management have once again imposed limits on investor withdrawals from their flagship retail private credit funds after redemption requests exceeded quarterly caps. Apollo capped withdrawals from its roughly $25-billion Apollo Debt Solutions fund after investors sought to redeem nearly 17% of outstanding shares, while Ares restricted withdrawals from its approximately $23-billion Ares Strategic Income Fund after requests climbed above 14%. Both funds allow quarterly redemptions of only up to 5% of outstanding shares, and this marks the second consecutive quarter that Apollo's fund has hit its limit. The parallel actions by two of the industry's largest managers suggest that redemption pressures are broad-based across retail private credit, driven by concerns over valuations, AI impacts on software borrowers, and expectations of lower interest rates. Despite the withdrawal restrictions, both firms report that the overwhelming majority of their underlying loans remain current, indicating that the caps stem from liquidity management rather than weakening credit fundamentals.
Apollo Global Management LLC Class AApollo's flagship private credit fund capped withdrawals for second consecutive quarter, signaling liquidity strain.
KKR & Co. Inc.
Ares Management LPAres restricted withdrawals from its Strategic Income Fund after redemption requests exceeded the 5% quarterly cap.