Apollo Holds Talks to Sell $3 Billion Private Credit Fund

May 11, 2026 - 02:08

Apollo Global Management has entered discussions to sell a private credit fund valued at approximately $3 billion, according to sources familiar with the matter. The move comes as the firm navigates a shifting landscape in the private lending market, where rising interest rates and tighter liquidity have put pressure on some investment vehicles.

The fund in question focuses on direct lending to mid-sized companies, a sector that has grown rapidly in recent years as banks pulled back from traditional corporate loans. Apollo's publicly listed business development company, MidCap Financial Investment Corp., reported a $61 million loss last week, highlighting the challenges facing some parts of the private credit space. The loss was attributed to markdowns on a handful of portfolio companies struggling with higher borrowing costs.

While Apollo has not confirmed a buyer, industry watchers say the sale could attract interest from other asset managers or institutional investors looking to gain exposure to private credit without building a platform from scratch. The deal would allow Apollo to offload a portion of its balance sheet while freeing up capital for other opportunities.

Private credit funds have become a cornerstone of alternative investing, but recent volatility has forced firms to reassess their strategies. Apollo's decision to sell signals a potential recalibration, even as the broader market for direct lending remains active. The outcome of the talks is expected in the coming weeks.