Apollo shares drop as private credit fears intensify

Investing.com -- Shares of Apollo Global Management have declined more than 3% in premarket trading on Tuesday as fresh concerns over the health of the $2 trillion private credit market weighed on sentiment.

The firm has moved to restrict investor withdrawals from one of its funds. Apollo shares are down about 23.9% year to date, despite a 4.8% rise in the last week.

The company said late Monday it would cap redemptions at 5% of its shares after investors sought to pull roughly 11.2% of total outstanding shares.

The requests amount to about $730 million of gross outflows for the period, offset almost entirely by $724 million in inflows.

The decision comes as credit worries have escalated, prompting renewed scrutiny of private loan portfolios and raising questions about the durability of one of Wall Street’s fastest-growing asset classes.

Redemption caps have become increasingly common across the industry. Rival firms, including Ares, Blackstone and BlackRock’s HPS Corporate Lending Fund, have also limited withdrawals as liquidity pressures rise.

Reports on Tuesday revealed that Ares Management's private credit fund has moved to limit redemptions at 5%.

You May Also Be Interested In

• Abivax (ABVX) PT Raised to $175 at BTIG
• Zhen Ding Technology Holding Limited (4958:TT) (HASGF) PT Raised to NT$720 at Nomura/Instinet
• Expedia (EXPE) PT Lowered to $303 at Wells Fargo