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Apollo capped redemptions at 5% of its $25B debt fund after investors requested 11.2% withdrawals, with redeeming investors receiving just 45% of their capital. BlackRock and Morgan Stanley imposed similar caps as business development companies face rising redemption pressure amid AI disruption concerns.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Apollo Global Management capped redemptions at 5% of outstanding shares for its $25 billion
00:08Apollo Debt Solutions Fund after investors requested withdrawals of 11.2%, according to
00:14the Wall Street Journal. Redeeming investors will receive 45% of their capital, a lower payout than
00:20some peers. BlackRock capped redemptions at 5% after requests reached 9.3%, while Morgan Stanley's
00:27North Haven Private Income Fund granted prorated redemptions at a similar rate to Apollo.
00:32Apollo said it will maintain the cap next quarter as it balances liquidity needs.
00:37Business development companies have faced rising redemption requests amid concerns about lending
00:42practices and exposure to businesses vulnerable to artificial intelligence disruption.
00:57o
00:57s
00:57You
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