"Apollo's $25 billion private credit fund received withdrawal requests totaling 11.2% this quarter and honored only 5%, capped at 5%. This is now happening simultaneously across the entire $1.8 trillion private credit industry."
"Retail capital is going to be a lot more cautious. In the short-term, there is not going to be one financial adviser allocating money to them."
"Net spread compression has reached 17 basis points year over year, pushing Apollo's net spread to 1.20%, while the cost of funds surged 30.9% in Q4 alone."
Apollo Global Management has $938 billion in assets but has seen a 22.06% drop in shares this year. Investor sentiment has turned negative, particularly after reports that its private credit fund honored only 5% of withdrawal requests. This situation reflects broader issues in the $1.8 trillion private credit industry, where funds struggle with illiquid loans. The firm’s strategy to attract retail investors is now under threat, as financial advisers are likely to be more cautious in allocating funds to Apollo amid these challenges.
#apollo-global-management #private-credit #investor-sentiment #withdrawal-requests #financial-strategy
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