Apollo Debt Solutions to Launch $502M CLO

The firm will act as collateral manager on the new securitization, replacing its existing credit line.

July 15, 2025

New CLO Expected to Close August 12

Apollo Debt Solutions BDC is moving forward with a $502.1 million CLO, expected to close on August 12, 2025. The deal gives the firm a new way to finance its lending platform while replacing an existing credit line.

The CLO will be issued by Barn Owl Funding LLC, a fully owned subsidiary of Apollo Debt Solutions. These notes will be backed by assets already held by Barn Owl. Apollo will oversee the structure as collateral manager, continuing to manage the credit and performance of the underlying assets.

Background: Transition from Existing Facility

This transaction follows the credit facility established in March between Barn Owl and Bank of America. That facility gave Barn Owl access to capital, with Apollo stepping in as both collateral manager and subordinated investor. Once the new CLO closes, the facility will be fully repaid and terminated.

Why the Shift to a CLO Matters

By moving to a securitized structure, Apollo gains flexibility. CLOs allow issuers to bundle debt into tradable securities, opening access to a wider pool of investors. It’s also a chance to lock in financing terms that better match the market’s appetite and the fund’s long-term strategy.

Important note: The company isn’t offering the CLO notes to investors directly as part of this disclosure. Instead, the announcement is a regulatory update tied to the expected change in financing structure. Forward-looking details—like deal timing or anticipated results—are subject to market conditions and operational execution.

Looking Ahead

This marks a shift in how Apollo sources capital for its lending business. With the CLO market offering scale and diversification, the firm is repositioning itself to move faster and reach further.