Apollo Diversified Credit Fund (CGCCX)
Score
2.5
- ClassC
- Managed byApollo Global Management
- Release dateApril 16, 2024
- UpdatedJuly 23, 2025
Net Asset Value
$1.13B($22.33/share as of 07/11/2025)
Max. Offering Size
UnlimitedInvestment Style
CoreHQ Location
New York, NYAmount Raised
Not explicitly statedLegal Construction
Delaware Statutory TrustAsset Class
Private CreditInception
April 2017Eligibility
Non-Accredited InvestorsMin. Investment
$2,500(non-retirement); $1,000 (retirement)
Target Return
Not disclosedNet Total Return
5.4825)%annualized since inception (through 04/30/20
Distributions
QuarterlyIncentive Fee
NoneAnnual Management Fee
1.5% of NAVHolding Period
Permanent CapitalAdvisor
Apollo Capital Credit Advisor, LLCDistributor
ALPS Distributors, Inc.Auditor
Deloitte & Touche LLPCounsel
Simpson Thacher & Bartlett LLPThe Bottom Line
The Apollo Diversified Credit Fund Class C gives everyday investors access to Apollo’s global $392B credit platform—investing in corporate loans, asset-backed debt, and securitized credit across public and private markets. The approach balances steady income with flexibility: Apollo can shift its exposure across credit sectors as conditions change.
What to Know: While the strategy has delivered a respectable 5.48% annual return since inception and a notably strong 10.9% return over the past year, total annual expenses exceed 3.8%, and you can't access your money daily—redemptions happen only quarterly. High fees and a 1% early-exit charge add cost friction, but returns have meaningfully improved.
Your Money vs. Reality
Here's the real-world opportunity cost for Millennial investors:
$10,000 Over 8.3 Years (April 2017–July 2025)
Note: Benchmarks considered SPY (stocks), HYG (high-yield bonds), LBMA Gold, S&P 500 Investment Grade Corporate Bond Index, Vanguard Federal Money Market Fund (VMFXX).
Key Takeaways:
- Apollo outperformed cash, Treasuries, and even corporate bonds by a wide margin.
- It still notably lags the S&P 500 and some bond funds, but not embarrassingly so.
- Most importantly, its last 12-month return (10.9%) puts it near the top of its peer group.
Fund Strategy
Apollo invests flexibly across a mix of private and public credit—direct lending, high-yield bonds, structured credit, asset-backed lending, and global fixed-income. The team rotates capital as opportunities shift in credit markets, aiming to balance consistent income with downside protection.
Fit Check
Available to: Non-accredited investors; $2,500 minimum.
Ideal For:
- Investors seeking professionally managed exposure to diverse credit without stock market swings.
- Income-focused investors who can tolerate quarterly liquidity.
Less Ideal For:
- Short-term investors or anyone who might need fast access to their funds.
- Maximizers who only want long-term market-beating growth.
Fast Facts
Key Concern
What It Means for You
High Expense Ratio (3.84%)
Reduces investor gains, so strong gross returns are needed to come out ahead
Quarterly Liquidity Only
You can only redeem shares four times per year, not daily
1% Early Exit Fee
If you sell within 1 year, you’ll pay a 1% redemption penalty
Return Swings with Credit Cycle
Performance can vary year-to-year depending on credit market conditions
Pros/Bulls Say
- Access to Apollo’s high-powered $392B global credit engine.
- Strong 10.9% return over past year and 5.48% since inception.
- Dynamic credit allocation helps navigate interest rate cycles.
Cons/Bears Say
- Expense ratio north of 3.8% cuts deep into returns.
- Redemptions only allowed quarterly, which restricts flexibility.
- Not well-suited for aggressive long-term growth strategies.
Verdict
2.5/5 — Apollo Diversified Credit Fund Class C is finally showing its strength. For HENRYs looking for bond-alternative income inside a professionally managed wrapper, it’s a good choice. Less liquid and more expensive than ETFs, but with better returns lately to show for it. However, one should watch out for its sustainability of good performance.
Fees & Expenses
Fee Type
Why It Matters
How Calculated
Typical Amount
Management Fee
Fund management and operations
1.85%
1.85%
12b-1 Distribution Fee
Broker commissions & servicing
0.75% of NAV annually
0.75%
Other Operating Expenses
Admin, audit, platform, etc.
Actual costs passed on
~1.24%
Redemption Fee
To discourage short-term withdrawals
1% if shares held < 1 year
1.0% (if applicable)
Total Annual Expenses
All-in cost for Class
Based on public filings
3.84%
Fee Impact Example:
$10,000 invested for 10 years at a 6% gross return:
- You’d pay about $384/year in fees—about $3,840 over 10 years.
- That’s 64% of your gains gone to fees if returns don’t stay strong.
Portfolio Snapshot
As of 3/31/2025
Asset Type
Geography
Top five Industries
Overview
ALIGNMENT: Below Average
- There’s no performance or incentive fee, which limits an obvious misalignment, but Apollo does not disclose any meaningful personal investment by its managers in Class C shares. For HENRY investors, this lack of “skin in the game” raises questions about whether decision-makers share your long-term incentives or risk.
- The fund’s 1% exit fee and absence of volume discounts may discourage frequent trading and favor Apollo over the retail investor. While the platform is reputable, the fee burden—combined with uncertain manager commitment—reduces overall investor alignment.
Performance: Below Average
- The fund has delivered a strong 10.9% return over the past twelve months, marking a notable improvement and suggesting that its strategy can deliver in the right markets. This recent surge is a positive development for investors expecting higher returns.
- Despite this uptick, the long-term annualized return since inception stands at a moderate 5.48%. For HENRY investors focused on building wealth, this performance is steady but less compelling than equity markets or more aggressive credit products.
Market Risk: Above Average
- The fund is well-diversified across credit sectors but still fundamentally exposed to cycles in the credit markets. Its net asset value (NAV) can swing with movements in defaults, rating downgrades, or sharp changes in interest rates—meaning downside risk does not disappear.
- While investing in floating-rate, senior loan assets helps protect against rising rates and overconcentration, the fund’s broad mandate can’t fully cushion against an adverse credit shock that could cut across market segments simultaneously.
Business Risk: Below Average
- Apollo’s scale ($641 billion in credit assets) means access to robust infrastructure, proprietary deal flow, and seasoned risk management—offering a sizable advantage over boutique managers. This institutional support can help weather periods of volatility.
- Low fund-level leverage at 12% enhances overall portfolio stability and reduces the chance of forced sales or margin calls. For HENRY investors, business execution risk remains well contained due to the depth of Apollo’s bench and industry status.
Debt Risk: Average
- The portfolio’s primary focus on senior secured debt keeps downside limited and prioritizes asset protection in the event of borrower distress. This is a core plus for income-oriented investors wary of deep losses.
- However, some exposure to sub-investment grade instruments increases sensitivity during downturns. The fund’s emphasis on short-duration, well-structured loans mitigates abrupt shocks but cannot fully eliminate risk if the credit environment materially deteriorates.
Liquidity Risk: Average
- Redemptions are processed quarterly and capped, aligning with most interval fund structures. Notably, the fund honored 98% of redemption requests in the past year, indicating that liquidity risk is manageable during normal markets.
- In the case of market stress or an investor rush to exit, redemption delays or partial payouts are possible. For HENRY investors who may need greater flexibility, this liquidity profile is more attractive than non-traded REITs, but still demands prudent planning.
Transparency: Above Average
- The fund provides daily updates of NAV, detailed monthly commentary, and offers full documentation online, allowing investors to review holdings, strategies, and fund performance without specialized tools or insider access.
- This level of access to fund information stands out in the private credit world. HENRY investors benefit from clear, user-friendly communications that can inform decisions—even for those not working at an institution or private bank.
Manager Insights
The people running your money matter. Here’s what you need to know about this team:
Earl Hunt
Chairman, Trustee & PresidentExperience & Highlights: 20+ years; joined Apollo in 2021; CEO of Apollo Debt Solutions; ex-Partner at Goldman Sachs and director at Citi.
Education: B.A. Economics, Brown University.
James Vanek
Portfolio Manager, Partner, CreditExperience & Highlights: 15+ years; joined Apollo in 2008; co-head of U.S. Performing Credit; ex-Assoc. Director at Bear Stearns.
Education: B.S. Economics & B.A. Computer Science, Duke University; MBA, Columbia Business School.
Christopher Lahoud
Portfolio Manager, Partner, CreditExperience & Highlights: 15+ years; joined Apollo in 2018; previously led Deutsche Bank’s distressed group; former credit trader at Citi.
Education: B.S. Accounting & Finance, University of Richmond.
Peer Comparison
Vehicle
Apollo Diversified Credit Fund (CGCCX)
Carlyle Tactical Private Credit Fund
Oaktree Diversified Income Fund
Min. Investment
$2,500
$10,000
$2,500
Holding Period
Permanent Capital
Permanent Capital
Permanent Capital
Inception Date
April, 2017
Jun, 2018
July, 2022
Annualized Distribution Rate
7.20%
8.50%
9.46%
Net Returns Since Inception (Annualized)
5.48%
5.47%
8.72%
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.
