Apollo Global Management has placed a cap on investor redemptions at Apollo Debt Solutions, one of its largest non-traded private credit funds.
The company set a cap on redemptions at 5% of its outstanding shares after investors sought to withdraw about 11.2% of its outstanding shares, according to a letter to shareholders. The move follows similar restrictions imposed on other private credit funds in recent weeks, deepening concerns across the $1.8 trillion private credit market.
BlackRock imposed a similar 5% cap on its $26 billion HPS Corporate Lending Fund in early March after withdrawal requests reached 9.3% of its net asset value.
Blue Owl Capital also permanently ended quarterly redemptions for its retail fund, Blue Owl Capital Corp II (OBDC II), replacing them with regular distributions through asset sales.
The increase in withdrawal requests comes as investors grow concerned about lenders’ large exposures to software companies. This field is currently under disruptive pressure from artificial intelligence (AI).
The actions of major financial institutions are also raising concerns. Goldman and JPMorgan offer hedge fund clients a way to short the private credit market.
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The private credit crisis in six numbers:
1. Default rate will reach 9.2% in 2025, the worst on record.
2. Fitch’s next 12-month default rate is 5.8% and rising as of January 2026.
3. Morgan Stanley predicts default rates will rise to 8%. Worst case for UBS: 15%.
4. Consumer products… https://t.co/HMZiXcn4KF pic.twitter.com/gHuPyt5Vce— MSB Intel (@MSBIntel) March 23, 2026
Meanwhile, Moody’s downgraded FS KKR Capital Corporation (FSK), jointly managed by Future Standard and KKR&Co, from Baa3 to Ba1.
“This downgrade reflects FSK’s continued asset quality challenges, resulting in lower profitability over time and material impairment of net asset value relative to peer business development companies (BDCs). It also reflects negative characteristics.Furthermore, FSK’s dependence on secured debt has increased to a level above its peers, which we expect to maintain.However, FSK is well positioned from a liquidity perspective with sufficient available revolver capacity and sufficient laddered unsecured debt maturities.
These developments are the latest in a series of evidence of increasing stress across private credit markets. The rift is widening as increased redemption requests and AI disruption put pressure on the software loans that fueled the sector’s growth.
How fund managers navigate the next quarter will determine whether stress remains contained or accelerates, as investors’ liquidity demands collide with portfolios built on illiquid assets.
The post Apollo and BlackRock’s Cap Pulls — The $1.8 Trillion Private Credit Market Under Real Stress appeared first on BeInCrypto.
