Apollo curbs withdrawals after exit requests hit 17%, reigniting fears over private credit liquidity

Apollo is halting investor redemptions in its main retail-focused private credit fund after it was rocked by a near-17% spike in withdrawal requests during the second quarter. The private markets giant said it will cap withdrawals at 5% of shares in the Apollo Debt Solutions vehicle, after investors rushed to pull out about $2.4 billion, or 16.8%, during the three-month period. "Taken together, we expect net outflows from ADS will be approximately $400 million for the second quarter of 2026 and year-to-date, representing 3% of NAV," Apollo said in a filing with the Securities and Exchange Commission published on Monday. It highlighted a "notable regional split" in second-quarter withdrawal requests, with U.S. onshore clients looking to pull out about 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 which offers wealthy retail investors exposure to higher-yielding private credit assets — saw an 11.2% spike in withdrawal requests in the previous quarter. The fund has a sizable exposure to U.S. software companies. "We believe challenges are largely confined to the software sector," Apollo said. Stock Chart Icon Stock chart icon Apollo Global Management. The redemption spike once again spotlights the liquidity pressures that have engulfed global private markets this year. …