The $14 billion Apollo Debt Solutions BDC will pay around $700 million to investors after withdrawal requests reached 14.7% of outstanding shares in Q3.
The Canadian bank now holds 10.5% of Blue Owl Credit Income Corp. as shareholders sought to withdraw 16.8% of outstanding shares in Q3.
The combined $25 million program prices ADS and ASIF shares at 14.6% and 13.4% discounts to August NAVs respectively, after both funds again capped repurchases.
Investor repurchase requests eased with net new withdrawal demand falling by approximately 60% QoQ.
The ~$30 million transaction will provide liquidity to shareholders in private debt funds managed by BlackRock, Apollo, and Ares at 15-30% discounts.
Mark Goldberg of Alternative Investments Market Intelligence analyzes why redemption queues across non-traded BDCs could take years to clear despite easing withdrawal demand.
The private debt vehicle recently capped Q2 redemptions after repurchase requests reached 16.8% of outstanding shares.
The Apollo Debt Solutions BDC gated withdrawals for a second consecutive quarter after investors sought to redeem approximately 16.8% of outstanding shares in Q2.
The rating agency does not expect positive rating momentum for Apollo Debt Solutions BDC in the near term.
Apollo Debt Solutions adhered to its 5% cap, fulfilling just 45% of total withdrawal requests.
