Apollo Private Share Sale Raises Nearly $292M

Apollo Debt Solutions BDC secures additional capital and reports strong portfolio performance as of year-end 2024.

January 24, 2025

Private Offering Expands Capital Base

Apollo Debt Solutions BDC (ADS), a business development company focused on private debt investments, completed an unregistered sale of 11.7 million Class I common shares, raising approximately $291.8 million. The sale, finalized on January 23, 2025, was made to investment vehicles created specifically to hold these shares. Conducted under a private placement exemption, the offering strengthens the firm's capital base as it continues to expand its portfolio.

Dividend Distributions and Special Payouts

The company declared January 2025 distributions for all share classes, with Class I shareholders set to receive a $0.20 per share payout, inclusive of a previously declared $0.02 special distribution. Class S and Class D shares will see slightly adjusted net distributions after shareholder servicing fees. These dividends will be payable on February 27, 2025, with eligible investors able to reinvest through the firm’s distribution reinvestment plan.

In addition, ADS reaffirmed its three-month special distribution plan announced in December 2024, which will provide an extra $0.02 per share for shareholders in January, February, and March 2025.

Portfolio and Investment Performance

As of December 31, 2024, ADS managed an investment portfolio valued at approximately $14.6 billion, spread across 323 companies and 52 industries. The firm’s investments were nearly 100% first lien loans, with 97% structured as floating rate debt, maintaining its focus on securing high-quality senior debt positions. The weighted average EBITDA of portfolio companies stood at $258 million, while the portfolio’s net loan-to-value ratio was 39%.

Financial Health and Returns

The net asset value (NAV) per share for each class stood at $24.86 as of year-end 2024, reflecting a slight decrease from $24.93 in November. The Class I shares delivered a 12-month return of 11.13%, while the annualized distribution rate, factoring in regular and special distributions, reached 9.65%.

ADS maintained a net leverage ratio of 0.51x, supported by $2.6 billion in available secured financing capacity. The company's total debt outstanding was approximately $4.9 billion, contributing to a debt-to-equity leverage ratio of 0.52x.

Notable Transactions

Two major financing deals in December 2024 showcased Apollo’s ability to deploy capital into high-profile transactions:

• Encore Global – Participated in a $2.4 billion first lien term loan for the event technology services provider. Apollo was invited due to its strong relationship with Encore’s sponsor.


• Catalent Inc. – Served as a lender on a $4.2 billion unitranche term loan, backing a sponsor-led acquisition of the pharmaceutical contract manufacturer. Apollo’s long-standing industry expertise and prior ties to Catalent’s advisors played a key role in securing participation.

Looking Ahead

With an ongoing $10 billion continuous public offering, ADS remains active in raising additional capital. As of the latest filing, the company had issued over 414 million shares, collectively generating more than $10.2 billion across public and private sales.

By maintaining a focus on first-lien debt and floating rate loans, Apollo Debt Solutions continues to navigate shifting market conditions while delivering strong returns and consistent distributions for investors.