Apollo BDC net assets fall to $13.51B as buybacks outpace sales

Apollo Debt Solutions BDC's net assets fell about 3.5% in the third quarter, to $13.51 billion at Sept. 30 from $14 billion three months earlier, as share repurchases outran new sales.

According to AltsWire's Nov. 11 report, redemption requests in the third quarter amounted to 14.7% of shares, nearly triple the fund's 5% cap. The offer that expired Sept. 14 drew 86.7 million shares tendered. The fund accepted 29.4 million shares, about 34%, on a pro rata basis and paid $698.3 million to tendering shareholders on or about Oct. 30. Repurchases net of early repurchase deductions totaled about $698 million, including $626.6 million of Class I shares, while Class I sales came to $84.7 million. Net capital share transactions reduced net assets by about $454.1 million in the quarter, compared with an increase of $1.18 billion a year earlier.

Per-share NAV was $23.78 at Sept. 30, down from $23.83 on June 30 and $24.40 at the end of 2025. For advisors with a client position in the BDC, the September tender cleared about a third of tendered shares, leaving the balance invested. Shares accepted in the tender therefore exited at a lower price than the fund's year-end NAV, while the unfilled remainder stayed exposed. A full exit from a position this size may need more than one quarterly offer because of the 5% cap.

The portfolio's fair value rose to $25.54 billion as Apollo made $2.83 billion of new investments, sold $1.67 billion and received $1 billion of repayments. The portfolio held 377 companies, down from 399 at the start of the quarter. First-lien secured debt was 99.3% of the portfolio, at a weighted-average yield of 8.8% at amortized cost. Investments on non-accrual status rose to 0.5% of fair value from 0.3% at the end of 2025, and payment-in-kind interest was 3.3% of total investment income, down from 3.5% in the second quarter and up from 2.7% a year earlier.

Long-term debt rose to $12.94 billion from $12.15 billion, for a net leverage ratio of 0.85 times, and the BDC expanded its credit facility to $3.99 billion in August. Net investment income was $302.2 million, compared with $304.0 million in the second quarter.

The annualized distribution rate in September was 9.06% for Class I shares, 8.81% for Class D and 8.22% for Class S. A second nontraded BDC, First Eagle's, put per-share NAV at $23.51 at Sept. 30, down from $24.23 at year-end, as Private Wealth Daily previously reported.