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Apollo Debt Solutions BDC Launches with Over $1B AUM

January 12, 2022, 08:00 AM
Filed Under: Private Equity News

Apollo Debt Solutions BDC has launched with more than $1 billion in assets under management. On Friday, January 7, the Fund broke escrow with approximately $657 million in equity net proceeds for its continuous public offering (the “Offering”). In connection with breaking escrow, the Fund issued and sold 26,258,912 shares of beneficial interest in the Offering. The Fund intends to continue selling shares in the Offering on a monthly basis.

The Fund invests primarily in directly originated assets, including debt securities, and in particular focuses on large-cap origination. The Fund is managed by an affiliate of Apollo, which has one of the world’s largest alternative credit businesses with approximately $341 billion in credit AUM.

Apollo Partner Earl Hunt, Chair and CEO of ADS, said, “We are pleased to break escrow and begin actively investing the Fund, leveraging our extensive experience across private credit, direct origination and our status as a preferred lending partner to thousands of companies and sponsors. We look forward to working with our distribution partners to continue growing ADS.”

Apollo’s Chief Client and Product Development Officer Stephanie Drescher added, “Individual investors have long been under-allocated to alternatives, and we believe this strong initial fundraise for ADS demonstrates the pent-up demand investors and their wealth advisors have for strategies of this kind. We’re excited for a growing set of investors and advisors to access Apollo’s asset management expertise through ADS and other current and prospective offerings.”

Apollo’s Global Wealth business is one of the Firm’s key strategic growth areas. The unit, focused on development and distribution of products for individual investors, has made significant new hires since its launch last year and, in December 2021, Apollo agreed to buy the wealth distribution and asset management businesses of Griffin Capital. Recently, Apollo also made venture equity investments in CAIS and iCapital, two of the leading technology platforms helping wealth and financial advisors access alternative strategies.

ADS is the first non-traded business development company sponsored by affiliates of Apollo and adds to a growing suite of solutions from the Firm that qualifying investors can access through their financial advisors.

Apollo Debt Solutions BDC (the “Fund”) is a regulated, non-listed BDC that provides individual investors access to investments targeted by the largest institutions. We believe it provides investors with a stronger and more diversified path to value than is typically available — and aims to offer a more beneficial risk-adjusted profile than public equivalents. The Fund focuses on senior secured large corporate direct origination, broadly syndicated loans, and, to a lesser extent, middle market direct lending. Together, we believe these attributes help position our BDC to perform.

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