Apollo Debt Solutions BDC 8-K

What Happened

• On January 23, 2026 Apollo Debt Solutions BDC (ADS) filed an 8‑K (Regulation FD disclosure) that includes a shareholder letter reviewing 2025 and outlining the Fund’s outlook for 2026. The letter reports Class I shares generated an 8.84% annualized distribution rate in December 2025; three‑month and one‑year total net returns of 1.75% and 7.94% (as of 12/31/2025); and an inception‑to‑date annualized total net return of 8.60%. NAV per share was $24.40 on 12/31/2025 (down from $24.86 on 12/31/2024).
• The letter discusses market conditions (strength in public risk assets, Fed cuts late 2025, strong M&A and AI‑driven investment), the private‑credit opportunity set, and ADS’s portfolio positioning and recent transactions.

Key Details

• Portfolio composition: 100% first‑lien, senior secured debt (by fair value) as of 12/31/2025; weighted‑average EBITDA of directly originated debt = $275M; estimated weighted avg. net LTV = 44%.
• Credit economics and leverage: 2025 direct originations averaged a spread of 485 bps (about 170 bps wider than new‑issue US leveraged loan spreads); Fund net leverage ratio = 0.59x (12/31/2025).
• Selected 4Q25 transactions (ADS participated alongside other Apollo funds): $4.2B financing for Jeppesen (Thoma Bravo carve‑out), $3.5B financing supporting Valor Compute Infrastructure L.P. (NVIDIA GPUs leased to xAI), $1.2B strategic financing for Russell Investments.
• Apollo scale and track record cited: ~$723B credit AUM (Sep 30, 2025) and a 0.1% average annual default rate for Apollo’s Global Corporate Credit (2009–Q3 2025) vs 2.4% for the leveraged loan market (per Apollo/J.P. Morgan data).

Why It Matters

• The filing gives investors concrete, fund‑level performance and portfolio metrics (distributions, NAV, leverage, collateral type) that show ADS is positioned toward defensive, first‑lien private credit lending while targeting attractive spreads versus public syndicated loans.
• The letter frames 2026 as a “selection” environment — more supply from M&A and AI financing but greater dispersion — which supports ADS’s focus on large‑cap, senior secured loans and may favor disciplined private‑credit strategies. Investors should note the continued tradeoff between higher private‑credit yields and reduced liquidity, and the letter contains standard forward‑looking disclaimers.