Key facts
- Apollo's private credit fund is limiting investor withdrawals to 5% of shares.
- Investors requested to withdraw approximately 16.8% of Apollo's fund's total shares.
- Morgan Stanley has also limited redemptions at one of its private credit funds.
- Investors sought to withdraw almost 11.6% of shares from Morgan Stanley's fund.
- These measures are intended to protect investments in illiquid loans and address liquidity challenges in the private credit sector.
Apollo Global's private credit fund, Apollo Debt Solutions (ADS), has imposed a 5% quarterly limit on investor withdrawals, following requests to redeem approximately 16.8% of the fund's total shares. The fund will honor about 45% of each request on a pro-rata basis to protect its investments in illiquid loans and prevent distressed sales.
Separately, Morgan Stanley has also restricted redemptions at one of its private credit funds after investors sought to withdraw nearly 11.6% of outstanding shares. These actions highlight growing liquidity challenges within the private credit sector, an asset class that globally exceeds $1 trillion and often holds direct loans to companies that do not trade on secondary markets.
The Apollo Debt Solutions Business Development Company manages approximately $25 billion in assets. In the first quarter of 2026, the fund experienced outflows of about $730 million, though it also attracted nearly $724 million in inflows. Market observers suggest these gating decisions may prompt investors to reassess their allocations to semi-liquid credit funds and increase scrutiny on liquidity mechanisms and portfolio composition amid economic uncertainty.