BlockBeats news, September 23: Apollo Global Management's Apollo Debt Solutions BDC (ADS) has once again hit its liquidity cap. In its latest quarterly tender offer, the fund received redemption requests equal to 14.7% of outstanding shares, but will repurchase only 5% of outstanding shares, marking the third consecutive quarter in which it has processed exit requests at the cap. ADS has approximately $25.9 billion in assets, and the latest redemption demand has eased from 16.8% in the previous quarter, but is still nearly three times the repurchase allowance.

ADS is a non-traded BDC, meaning investors cannot sell shares at any time through an exchange and can only apply to exit during quarterly repurchase windows. Fund documents stipulate that no more than about 5% of issued shares may be repurchased each quarter; when requests exceed the allowance, they are processed on a pro rata basis, and the unmet portion may roll into subsequent windows. Based on a rough calculation using the 14.7% and 5% ratios, only about one-third of the current round's exit demand can be met immediately, and actual allocations will also be affected by the rolling submission of previously unfilled requests.

Apollo said most redemption requests this quarter came from investors resubmitting after previously not being fully satisfied, rather than all being new withdrawals. The fund expects that after this repurchase round is completed, investors who submitted liquidity requests in 2026 will have received cumulatively about 75% of their requested funds; in the third quarter, about $200 million in new subscriptions flowed in, with plans to repurchase about $700 million in shares, implying net outflows of about $500 million, equivalent to 3% of net asset value.

The decline in redemption demand shows that liquidity pressure in private credit has eased slightly from the previous quarter, but hitting the cap three times in a row still indicates that the exit queue in wealth management channels has not been fully cleared. Peer institutions such as BlackRock and Cliffwater have also limited redemptions in their private credit products this year, and the market is still assessing valuation risks stemming from loan quality, the financing environment, and credit exposure to some traditional software companies.