Private credit funds face rising redemption pressure in Q2
Apollo Debt Solutions saw redemption requests jump to 17% of NAV in Q2 2026, while across nine major funds nearly $15 billion was sought by investors, with less than 40% fulfilled.
Pressure on the private credit industry is mounting as redemption requests rise across major funds. Apollo Debt Solutions, a flagship retail fund from Apollo Global Management, reported withdrawal requests at roughly 17% of net asset value in the second quarter of 2026, up from 11% in the first quarter. The fund received approximately $2.4 billion in redemption requests during the period but fulfilled less than 30%, constrained by its standard 5% quarterly redemption cap.
The trend is not confined to a single vehicle. According to data from the Financial Times, across nine major private credit funds representing nearly $200 billion in assets, investors sought to withdraw almost $15 billion in Q2. Less than 40% of these requests were met, highlighting liquidity constraints across the sector.
Industry observers point to multiple pressures: growing exposure to software companies vulnerable to AI-driven disruption, higher interest rates reducing the appeal of illiquid holdings, and stronger returns in public markets luring capital away. With redemption requests rising and liquidity limits restricting withdrawals, stress on the private credit industry appears likely to persist through 2026.
Source: First Squawk