Redemptions News & Analysis
3 articles
Market Mood
Apollo (APO) Halts Withdrawals After 17% Increase in Requests
Apollo Global Management (APO) is capping withdrawals at 5% following a near 17% spike in requests during Q2 2023, where investors attempted to withdraw about $2.4 billion, or 16.8%. The firm anticipates net outflows from its Apollo Debt Solutions (ADS) fund to be around $400 million for the second quarter of 2026, representing 3% of net asset value (NAV). Notably, onshore U.S. clients sought to withdraw approximately 4.3%, while offshore investors' redemptions hit 12.5%. This trend highlights increasing liquidity pressures in private credit markets amid uncertainties regarding asset quality.
Read More
Saba Capital's Tender Offers for Blue Owl (OBDC II) Below Expectations
Saba Capital Management reported that its tender offers for shares in Blue Owl Capital Corporation II (OBDC II) and Starwood Real Estate Income Trust (SREIT) were below initial expectations. The tender for Blue Owl shares was unsuccessful, garnering less than 1% of offers, while Saba acquired about $10 million across 190 trades, predominantly from SREIT. This came as elevated redemptions saw investors seeking to pull out $5.4 billion from two private-credit funds in the first quarter. Saba indicated that they perceive growing opportunities for providing liquidity in this market through 2027 and 2028.
Read More
Private-Credit Industry Sees Increased Redemptions and Fundraising Challenges
The private-credit industry is facing significant challenges, including a reported increase in redemptions. Fundraising efforts have slowed down, impacting overall capital inflows into the sector. These developments may affect the liquidity and investment strategies of private credit funds, influencing their performance and potential returns. Additionally, a slowdown in fundraising could indicate shifting investor sentiment towards alternative investment vehicles.
Read More