Apollo announced it limits redemption from its 15.1 billion USD net asset value flagship private credit fund Apollo Debt Solutions BDC sticking to a predetermined 5 % cap.
The fund received redemptions requests equal to 11.2 % of shares of the fund.
Apollo has made the claims it has lent to larger, stronger companies, but the news it is limiting redemptions from its flagship private credit fund show it is not insular to the AI driven Software As A Service SaaS technology companies business models reappraisal that is plaguing the technology sector.
Software is 12.3 % of the assets of Apollo Debt Solutions BDC.
The news that Apollo is having difficulties paying out request from its flagship credit fund confirms that the private credit industry is going through very tough times as both stretched software valuations and AI disruptions chips away at the previously winning model of Software As A Service SaaS for technology companies.
The private equity and private credit industry should recover from the current setback.
Artificial intelligence, AI is not going to disrupt software development as much as currently feared, according to Wolfteam Ltd.'s projections and estimates.
If the AI boom does not turn to a bust, defined by the Nasdaq Composite falling more than 62 % from its recent peak, the private equity and private credit industry should turn out OK, with limited defaults.
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