Key facts
- Apollo Global's president stated redemption requests for its private credit fund are about half the previous level.
- Ares Management scaled back a €1 billion private credit vehicle to €400 million after investor pushback on loan valuations.
- The Dallas and New York Fed banks will survey the estimated $1.3 trillion private credit market, with findings expected in Q1 2027.
- Golub Capital Private Credit Fund saw repurchase requests fall to 4.8% in its latest tender period.
- BCP Investment and Morgan Stanley Direct Lending Fund reported weaker second-quarter results.
In the private credit markets this week, Apollo Global reported a significant easing of redemption requests from investors, with its president, Jim Zelter, stating that withdrawal demands are now around half the level seen previously. The $26 billion Apollo Debt Solutions fund had previously faced requests to redeem approximately 16.8% of its shares.
Apollo CEO Marc Rowan indicated the firm is on track to offer daily pricing for its funds by October, aiming to make them more accessible to retirement plans and individual investors. This move aligns with Rowan's pledge to increase transparency and liquidity for private assets.
Despite these positive signs for Apollo, other players in the private credit space faced challenges. Ares Management was reportedly forced to shrink a planned €1 billion ($1.15 billion) private credit vehicle to about €400 million after potential investors sought a larger discount on the loans than Ares was willing to offer. This continuation fund effort follows a similar move by Ares last year.
Furthermore, BCP Investment and Morgan Stanley Direct Lending Fund both posted weaker second-quarter results. BCP Investment's net asset value fell due to unrealized mark-to-market losses in its software holdings, while Morgan Stanley Direct Lending Fund saw its net investment income dip due to non-accrual positions.
In a broader market development, the Dallas and New York Federal Reserve banks announced plans to launch a pilot survey of the estimated $1.3 trillion private credit market after the third quarter, with findings expected in early 2027. The survey will segment the market by borrower size.
Separately, repurchase requests at the Golub Capital Private Credit Fund fell to 4.8% of common shares outstanding during its July 29 tender period. The fund stated it would honor all requests at net asset value as of June 30 and had approximately $4 billion in diversified liquidity sources at that time. Bridgepoint is also reportedly exploring a €1 billion private credit secondaries deal.