Apollo Debt Solutions BDC
Score
2.5
- ClassS
- Managed byApollo Credit Management, LLC
- Release dateApril 16, 2024
- UpdatedJuly 18, 2025
Net Asset Value
$11.4BMax. Offering Size
$10BInvestment Style
CoreHQ Location
New York, NYAmount Raised
$4.62BLegal Construction
Delaware Statutory Trust (DST)Asset Class
Private CreditInception
February 1, 2022Eligibility
Accredited and qualified retail investorsMin. Investment
$2,500Annualized Distribution Rate
8.9%Net Total Return
7.72%Distributions
MonthlyIncentive Fee
12.5%Annual Management Fee
1.25%Holding Period
Permanent CapitalAdvisor
Apollo Credit Management, LLCDealer Manager
Apollo Credit Management, LLCAuditor
Deloitte & Touche LLPCounsel
Simpson, Thacher & Bartlett LLPThe Bottom Line
Apollo Debt Solutions BDC gives you access to income from large-scale private U.S. companies and takes the most secure position in the debt stack—first-lien loans, meaning Apollo gets paid first if a borrower runs into trouble. It pays out an 8.9% annualized yield (mostly cash), distributed monthly.
What to watch: You’ll pay high fees—over 8% of your investment goes to expenses each year. While your investment grew at around 6.5% a year (as of July 2025) since February 2022, that’s steady but slower growth compared to the stock market. If you want out, you can request redemption any quarter and, as a small investor, are likely to get cashed out in full—unless a surge of redemption requests from all investors exceeds the fund’s 2% cap for that quarter.
Your Money vs. Reality
$10,000 Over 3.5 Years (Feb 2022 – July 2025):
Note: Benchmarks considered SPY (stocks), HYG (high-yield bonds), LBMA Gold, S&P 500 Investment Grade Corporate Bond Index, iShares Short Treasury Bond ETF (SHV).
Key Takeaways:
- Apollo beat bond funds and cash, but trailed stocks: $621 less per $10k vs. S&P 500.
- High-yield bond returns were close, with easier liquidity and lower fees.
- For a HENRY focused on wealth, Apollo’s steady income trades off long-term growth.
Fund Strategy
Apollo Debt BDC focuses on lending to well-established, large private businesses mostly through floating-rate, first-lien loans. When interest rates rise, payouts usually rise too. Apollo’s “institutional-grade” pipeline lets it target $250M+ profit companies, spreading risk over 345+ businesses.
Fit Check
Available to: Accredited and qualified retail investors (income + net worth minimums apply). $2,500 minimum investment.
Ideal For:
- Investors prioritizing regular, high yield income.
- People who don’t need instant access to their funds.
Less Ideal For:
- Anyone likely to need to withdraw a large sum in a single quarter during market stress.
- Growth-focused, long-term investors aiming for S&P 500-like appreciation.
Fast Facts
Key Concern
What It Means for You
High Annual Fees
Over 8% of returns lost to expenses each year
Redemption Cap (Fund-wide)
You can redeem all your shares unless fund hits the 2% quarterly limit; if many investors redeem at once, requests are prorated
Stock Market Underperformance
Growth lags S&P 500—income-focused, not best for compounding
Payment-in-Kind (“PIK”) Income
Some yield may be paid as extra shares, not always cash
Pros/Bulls Say
- Monthly cash yield (8.9%) and “first in line” loan security
- Access to large, private company loans not available to most individuals
- Floating-rate loans boost income when rates rise
Cons/Bears Say
- High all-in fees (8.41%) eat deeply into total returns
- Liquidity isn’t immediate—quarterly redemptions and a fund-wide cap apply
- Return since launch has trailed simple index funds and many public alternatives
Verdict
2.5/5 – Apollo Debt BDC Class S delivers on its promise of high, steady income with professional management and lower risk than some high-yield debt. For HENRYs who want dependable yield and don’t need fast access to their cash, it’s a credible choice, but costs and liquidity set a real ceiling on long-term wealth growth.
Fees & Expenses
Fee Type
Why It Matters
How Calculated
Typical Amount
Up-front Fee
Sales commission
% of investment
Up to 3.5%
Stockholder Servicing Fee
Investor account support
% of NAV, accrued daily
0.85% annually
Management Fee
Portfolio oversight
% of NAV, accrued daily
1.25% annually
Incentive Fee
Performance bonus
12.5% of returns above 5%
Variable (typically 12.5%)
Interest & Operating Expense
Cost to borrow/manage
Fund operating expenses
~6.31% annually
Fee Impact Example:
A $10,000 investment for 10 years at 7% gross annual return:
- would cost $350 up front and $841 in fees yearly—over $8,700 in a decade, wiping out nearly 88% of your pre-fee gains.
Portfolio Snapshot
As of 3/31/2025
Asset Type
Interest Rate Type
End Market
Overview
ALIGNMENT: Below Average
- Earl Hunt’s personal investment of over $1 million shows some alignment with shareholders. However, this amount is small compared to the fund’s total assets under management, and does not represent a substantial personal financial stake relative to fund size.
- Performance fees are only paid if returns exceed 5%, helping keep the manager’s eye on delivering real value. Despite this, overall fees remain high, potentially eroding net returns for investors even when the fund’s performance is only moderate.
Performance: Below Average
- Annualized returns have been steady at 6.5%, with reliable monthly dividends providing a stable income stream for investors. The strong 10.2% return in 2024 was a highlight, reinforcing the fund’s ability to deliver in favorable markets.
- While the consistent yield is attractive, long-term growth has lagged public equity markets and some other alternative credit investments. For growth-oriented HENRY investors, this below-average performance limits wealth-building potential compared to more aggressive or equity-based strategies.
Market Risk: Below Average
- The fund prioritizes senior, first-lien floating-rate loans to large, well-established borrowers, which helps reduce the risk of capital loss and insulates the portfolio from default risks. With only 0.1% of loans considered troubled, credit quality remains robust.
- Apollo’s broad industry diversification and disciplined origination standards have driven low default rates, even during market volatility. This approach minimizes exposure to sector-specific risks, providing a cushion against adverse events in any single area.
Business Risk: Below Average
- Apollo brings enormous scale and industry reach, with $641 billion in credit assets under management. This allows for diverse deal sourcing and reduces exposure to any one counterparty or transaction.
- The platform’s established reputation and deep deal flow help maintain operational stability and resilience. Reliance on a broad manager bench rather than a single star reduces performance risk, making the business model more robust through cycles.
Debt Risk: Above Average
- Fund leverage sits at 0.52x, which is modest for the private credit space and offers some protection against large market swings. Portfolio companies generally maintain strong interest coverage ratios, helping to ensure continued loan repayments and preserve fund stability in rising rate environments.
- Despite the reasonable leverage, any sustained increase in borrower defaults or spread widening could put pressure on returns. Higher rates may also make refinancing more challenging for underlying companies over time, warranting ongoing monitoring.
Liquidity Risk: Above Average
- Investors can typically redeem their holdings in full, but the fund’s 2% cap on quarterly redemptions creates the risk of delays or prorated payouts if many investors wish to exit at once. Liquidity is better than some private vehicles but still less flexible than public equities or high-quality bonds.
- In times of market stress or wave redemptions, access to cash may be limited or subject to board suspension. HENRY investors needing emergency liquidity should factor in these constraints before overallocating.
Transparency: Above Average
- The fund provides daily net asset value updates, regular performance communications, and relies on independent third-party valuations. This reporting structure greatly exceeds the typical transparency found in traditional private credit funds.
- Frequent updates help investors monitor portfolio trends and react to changes, fostering accountability and confidence. The clear visibility into holdings and valuation methodology supports informed decision-making for those seeking more transparency in their alternative credit allocations.
Manager Insights
The people running your money matter. Here’s what you need to know about this team:
Earl Hunt
Fund CEO & ChairpersonExperience & Highlights: 20+ years; joined Apollo in 2021; ex-Partner at Goldman Sachs; senior roles in leveraged finance at Goldman & Citi.
Education: B.A., Brown University.
Jim Vanek
Fund Portfolio Manager; Partner, CreditExperience & Highlights: 15+ years; joined Apollo in 2008; former Associate Director in Loan Sales & Trading at Bear Stearns; board member at LSTA.
Education: B.A., Duke University; MBA, Columbia Business School.
Robert Givone
Co-Chief Investment OfficerExperience & Highlights: 25+ years; joined Apollo in 2015; previous roles at Davidson Kempner, Brencourt, and Lehman Brothers.
Education: B.A., Columbia University.
Peer Comparison
Features
Apollo Debt Solutions BDC (Class S)
Carlyle Tactical Private Credit Fund (Class A)
PIMCO Flexible Credit Income Fund (Class A-1)
Min. Investment
$2,500
$10,000
$2,500
Holding Period
Permanent Capital
Permanent Capital
Permanent Capital
Inception Date
February 2022
June 2018
February 2017
Annual Fee Expense
8.41%
5.8%
6.68%
Net Returns Since Inception (Annualized)
7.72%
5.47%
5.28%
Annualized Distribution Rate
8.9%
8.50%
9.7%
NOYACK® Score
Disclaimer
All Rights Reserved. The data and analyses contained herein are the property of Noyack and are protected by copyright and other intellectual property laws. The information provided is intended solely for informational purposes and should not be construed as investment advice. It is not an offer to buy or sell a security, and it is not intended to be used as the sole basis for any investment decision. The information contained in this document is believed to be accurate and reliable based on sources believed to be reliable, but Noyack makes no representation or warranty, express or implied, as to its completeness, accuracy, or timeliness. The data and analyses are subject to change without notice and Noyack is not obligated to update this information. The use of the information contained in this document is at the sole risk of the reader, and Noyack shall not be responsible for any losses, damages, or expenses incurred by any person as a result of reliance on the information contained herein. Noyack does not endorse or approve any investment or trading strategy and does not guarantee any specific outcome or profit. The reader should always conduct their own independent analysis and consult with a qualified financial advisor before making any investment decisions. This document may contain forward-looking statements and projections which are subject to risks and uncertainties, and actual results may differ materially. Past performance is not indicative of future results. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Noyack reserves the right to modify or discontinue the provision of the information contained in this document, in whole or in part, at any time and without notice. The information contained in this document is provided “as is” and Noyack makes no representation or warranty of any kind, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the information contained in this document. Noyack shall not be liable for any errors or omissions contained in this document or for any damages whatsoever arising out of or in connection with the use of this document.
