Apollo Debt Solutions Launches $600M Credit Facility

The revolving facility aims to enhance asset acquisition flexibility and may scale to $1 billion.

December 23, 2025

New Financing Vehicle, New Flexibility

Apollo Debt Solutions BDC has set up a new financing vehicle to support its investment activity—and it’s a big one. On December 19, the firm launched Toucan Funding LLC, a wholly owned subsidiary that now serves as the borrower on a $600 million revolving credit facility.

The facility is designed to fund the acquisition and origination of eligible assets, some of which will come directly from the parent fund. Apollo expects to contribute investments to Toucan Funding over time, holding a residual interest in the assets through its ownership stake.

How It Works

Toucan Funding can draw loans in U.S. dollars and other approved currencies, with borrowing capacity tied to the value and concentration of its underlying assets. The current $600 million limit can be upsized to $1 billion under the facility’s accordion feature, giving the fund room to grow as market opportunities emerge.

Drawdowns can be made and repaid over a three-year reinvestment window. Any principal or interest income from the assets must first cover fees, expenses, and interest due—after that, excess proceeds may flow back to Apollo. Once the reinvestment period ends, principal payments on borrowings are added to the waterfall. Everything matures five years from closing.

The Players and the Terms

Truist Bank is on point as administrative agent and swingline lender. Citibank handles custodial duties, while Virtus Group manages the collateral. Truist Securities arranged the deal.

Loans under the facility accrue interest at a floating benchmark—one-month Term SOFR for U.S. dollar advances—plus a 1.60% margin. After the reinvestment window closes, that margin increases slightly. The agreement also includes restrictions on Toucan Funding’s activities and borrowing, as well as standard events of default.

Why It Matters

Assets pledged under the facility are ring-fenced from Apollo’s other obligations. Even so, borrowings from Toucan Funding count toward Apollo’s asset coverage under the Investment Company Act of 1940. That means the firm retains full regulatory accountability while using the vehicle to add flexibility on the financing side.

With this new structure in place, Apollo is positioned to ramp up its investment pipeline without tying up capital unnecessarily. The setup gives them room to stay responsive—expanding capacity when needed, drawing down when opportunities align, and managing returns with greater precision.