Apollo Diversified Credit Fund Repurchase: 27% Filled, Aug 2026

What the fund is, in one paragraph

Apollo Diversified Credit Fund is a credit fund sold to individuals through advisers and platforms in six share classes, with Class I (ticker CRDIX, $1,000,000 minimum initial investment) holding $1.47 billion of its $1.64 billion of net assets. It describes itself as a "multi-asset" credit strategy across corporate direct lending, asset-backed finance and performing credit, and its fact sheet for August 31, 2026 puts the portfolio at 62%, 10% and 28% in those three. The fund began in April 2017; Apollo acquired its adviser, then called Griffin Capital Credit Advisor, on May 2, 2022 (the sponsor's history is in what happened to Griffin Capital). The portfolio is broad: 243 portfolio companies on August 31, 2026 and 514 line items in its latest Form N-PORT, mostly floating-rate loans. How it fits among its peers is in our list of interval funds and private credit funds pages; this page is about one question, how easy it has been to get money out and what sits behind that.

Eleven repurchase offers, February 2024 to August 2026

From the repurchase tables in the fund's annual and semiannual reports (Form N-CSR for 2024 and 2025, Form N-CSRS for the six months to June 30, 2026). Request deadline and pricing date are the same day. "Share repurchased" is of shares outstanding; the report gives it only as a whole percentage.

Through February 2026 the fund bought nearly everything it was asked for, between 2.6% and 7% of its shares per offer. August 2024 was the first proration, and it was small (about 98% filled, in an offer where the fund bought 7%). November 2025 was the next offer above 5%: the fund's annual report says requests "exceeded the number of shares subject to the repurchase offer" and that, "as permitted by Rule 23c-3(b)(5)", it bought an additional 2% of its shares, "sufficient to satisfy the full amount of repurchase requests." Then February 2026 was the last full fill, at 4.5%.

May and August 2026 look different. The fund bought 5% in May (3,769,349 shares, $84.3 million) and about the same in August (3,741,496 shares, $83.0 million, or 5.1% of the 73,716,737 shares outstanding on June 30, our arithmetic), which indicates it did not buy the extra 2% in either offer: the 5% was the offer amount, and the rest was prorated. For both offers the report says the requests “exceeded the number of shares subject to the repurchase offer” and the fund “determined to repurchase shares on a pro rata basis.” Had it used the 2% in August, the fill would have been about 38% instead of 27% (our arithmetic).

How big the requests were, and what a holder would have received

The semiannual report gives shares tendered for the last two offers only. The table puts them next to the shares the fund bought; the percentages of outstanding shares are ours, from the fund's own 5% offer size (shares repurchased divided by 5%).

In February 2026 the fund bought 3,369,037 shares, 4.5% of the total, and said everything was honored. Two quarters later requests were roughly 18% of the fund (our arithmetic), more than twice the largest request earlier in the table (about 7% in August 2024, our arithmetic).

Proration is pro rata: each holder gets the same percentage. Two examples, both our arithmetic and not a forecast:

• A holder who tendered all of a $1,000,000 position in August 2026 would have had about $272,700 repurchased (27.3% of the request) and kept about $727,300 in the fund, with the next chance in the following offer. The repurchase notice says "If a portion of your shares were not repurchased due to proration, you will have to wait until the next quarterly repurchase offer to submit a new repurchase request."
• If the same 27.3% fill repeated in each of the next four offers and the holder tendered the rest each time, about 72% of the position would be out after four quarters. The fill rate depends on what other holders ask, which is the one number the filings do not give in advance.

The exception in the notice: the fund "may accept all shares tendered for repurchase by shareholders who own less than one hundred (100) shares and who tender all of their shares, before prorating other amounts tendered." At $22.12 a share, 100 shares are worth $2,212.

The window open now: closes November 3, 2026

The Form N-23C-3 filed September 29, 2026 (notice dated September 24, 2026, accession 0001398344-26-017500) opens an offer for up to 5% of outstanding shares. The terms that matter to someone who wants out:

The price is not known until the pricing date, and a holder tendering through an adviser or broker usually has an earlier internal cutoff. The prospectus says offers are made in March, June, September and December, so the next notice should arrive in late December 2026. The notice's own words on the decision: "Neither the Fund nor its Board of Trustees makes any recommendation to any shareholder as to whether to tender or refrain from tendering shares." A repurchase is a taxable event, per the same notice.

NAV and the payout

Class I NAV at the dates of the six offer notices we read, in order: $22.28 (June 20, 2025), $22.60 (September 18, 2025), $22.63 (December 17, 2025), $22.44 (March 19, 2026), $22.25 (June 18, 2026) and $22.12 (September 17, 2026). From December 17, 2025 to September 17, 2026 that is a decline of 2.3% (our arithmetic).

The financial highlights give the arithmetic of the first half: for Class I, net investment income of $0.85 a share, distributions of $0.87, and a NAV that went from $22.66 to $22.25. Net realized and unrealized loss was $0.39 a share; the fund booked $54.8 million of net unrealized depreciation on investments in the six months. The total return was 2.08% for six months (not annualized) after 10.26% in 2025 and 11.44% in 2024. Distributions to shareholders of $63.4 million were 102% of net investment income of $62.1 million (our arithmetic). The fund's fact sheet puts the Class I annualized distribution rate for the second quarter of 2026 at 8.03% and the trailing twelve months at 7.86%, and its net return for the twelve months to August 31, 2026 at 6.6%.

Borrowing, and how the fund pays for repurchases

The fund's own statement on funding is in its risk factors: repurchases "generally will be funded from available cash, cash from the sale of Common Shares or sales of portfolio securities." The accounts show a fourth source, bank debt, and a shrinking first one.

Borrowings were 40.7% of net assets at June 30, 2026 (our arithmetic). The fund's own measure, borrowings divided by managed assets, is the figure in each fact sheet attached to the offer notices: 13.4% (May 31, 2025), 22.2% (August 31, 2025), 31.4% (November 30, 2025), 26.2% (February 28, 2026), 29.6% (May 31, 2026) and 29.5% (August 31, 2026). The prospectus says the 1940 Act limits borrowing to no more than 33 1/3% of total assets; asset coverage was $3,304 per $1,000 of credit facility at December 31, 2025, and about $3,456 at June 30, 2026 on the same formula (our arithmetic).

Monthly sales and redemptions from the three Forms N-PORT show the flow:

Monthly gross sales fell from $79.9 million in October 2025 to $14.8 million in June 2026, a drop of 81% (our arithmetic). Each quarterly repurchase is paid in one month. Net of reinvested distributions, the second quarter was the first of the three in which money out exceeded money in. The Form N-PORT for July to September 2026, due in late November, will show the August repurchase.

The cost of the debt is visible in the income statement. For the six months to June 30, 2026, interest on lines of credit was $17.1 million of $35.0 million in total expenses (48.8%, our arithmetic), at an average stated rate of 5.47% on the Citi line and 5.40% on the RBC line.

What it costs, by class

The prospectus fee table (Form 486BPOS of April 29, 2026) assumes the fund borrows 25.39% of net assets at a 1.50% average cost. The semiannual report shows what the classes actually ran at, annualized for the first half of 2026, including interest on the credit lines and after the adviser's waivers.

The management fee is 1.50% of daily net assets, and the prospectus fee table has no incentive-fee line. The adviser has approved its expense limitation "at least through April 30, 2027", and the fund has agreed to repay the adviser for fees it waived, subject to board approval. On Class I the cap leaves ordinary expenses at 2.00% and the other 2.16 points of the 4.16% are interest and related costs (our arithmetic). Class F's 1.50% is the cap in its own expense limitation agreement.

What the fund holds

At June 30, 2026 the semiannual report shows total investments of 135.80% of net assets ($2,227.4 million), 111.28% of net assets of it in bank loans. Level 3 investments, those valued with unobservable inputs and no market price, were $1,396.4 million, or 85.1% of net assets and 62.8% of the $2,225.3 million in the fair value table (our arithmetic). The same table puts Level 2 at $750.6 million and Level 1 at $78.4 million. Form N-PORT lists $2,465.5 million of holdings and classes 66.2% of them as Level 3 (our arithmetic); the two filings do not use the same base, which is why the percentages differ.

Other numbers from the report and its fact sheet:

• Unfunded delayed-draw loans of $256.5 million, 15.6% of net assets (our arithmetic), which the fund may have to fund.
• Defaulted and non-accrual securities of $5.3 million, 0.32% of net assets.
• 98.2% senior secured and 87.9% floating rate, a weighted average portfolio yield of 9.4% and 243 portfolio companies (fact sheet of August 31, 2026).
• Direct lending at 62% of the portfolio on August 31, 2026, above the 40-60% long-term target the same fact sheet states; performing credit at 28% against a 20-40% target.
• 28.1% of reported holdings by value flagged by Form N-PORT as paying interest in kind in whole or in part (our arithmetic; the flag is at security level, not the share of interest actually paid in kind).

The ten largest named issuers in the June 30, 2026 Form N-PORT total 17.5% of net assets (our arithmetic), so single-name concentration is low; the risk is in what the loans are and how they are priced.

The fund's own fact sheet for August 31, 2026 ranks Mavis Tire Express Services TopCo at 2.0% of the portfolio, Kronos I UK at 1.6%, BCPE Maverick Parent at 1.5% and Gainwell at 1.4%, and describes the Kronos position as "a non-recourse margin loan to SoftBank Group pledged against 73% stake in ARM Holdings."

The October 1 supplement: valuation

The fund's most recent filing, a Form 424B3 dated October 1, 2026 (accession 0001193125-26-409949), arrived the week after the repurchase offer opened. It replaces the "Determination of Net Asset Value" section and the valuation risk factor of the May 1, 2026 prospectus and adds a new risk factor. Three sentences matter for someone whose exit price is the NAV: “A material portion of the Fund’s portfolio consists of Level 3 assets”; “Shareholders have limited or no basis to independently verify Level 3 valuations”; and, under the new heading "Conflicts of Interest in the Fair Value Process", the adviser "may have economic interests that are affected by the valuations they produce, including interests arising from management fees calculated on the basis of NAV." The supplement also describes a "proprietary process to generate daily fair values for certain Level 3 investments" between third-party valuations. It does not say the NAV is wrong. It says the price at which holders leave depends on a model for most of the portfolio.

What the filings do not tell you

• Who is asking out. Shares tendered are given only when an offer was prorated, and only in the semiannual or annual report, weeks after the window closes (May and August 2026 in the June 2026 report). The Form N-23C-3 for an offer carries no result; the Form N-PORT shows redemptions per month in dollars, not requests.
• Whether the extra 2% will be used. The fund bought above 5% in August 2024 and November 2025, and not in May or August 2026. The notice says only that it "may, but is not required to" buy more.
• The size of requests relative to liquidity. The repurchase policy in the prospectus requires that assets equal to at least 100% of the repurchase offer amount be sellable, individually, within the period between the deadline and payment. That test is on the offer amount, 5%, not on requests of about 18% of shares.
• Credit quality by holding. The Form N-PORT fields we read give a default flag and no ratings; the semiannual report flags non-accrual positions, which total $5.3 million at June 30, 2026.
• Net assets in two filings. Form N-PORT puts net assets at $1,626.3 million at June 30, 2026 and the semiannual report at $1,640.2 million, $13.9 million apart; the report lists $13.8 million of receivable for shares sold, and neither document reconciles the two.
• What the third quarter did. Sales, redemptions and borrowings for July to September 2026 appear in the Form N-PORT due late November 2026. The result of the November 3 offer will be in the annual report for 2026, around March 2027.

What a holder or buyer can do with this

• If you hold shares and want out: submit the request through your adviser, broker or the fund's form before 4:00 p.m. Eastern on November 3, 2026; you may withdraw until then. Assume proration in your planning, not a certainty.
• If you tendered in May or August: the unfilled part was not carried over. The notice says you have to submit a new request in a later offer.
• If you are weighing a purchase: the offer is "limited liquidity" by the fund's own description, and the last two quarters show what that looked like when requests were about 14% to 18% of shares. With a $1,000,000 Class I minimum, a 27% fill on a minimum-size position is about $270,000.
• If you hold Class A or C: the sales load and the 1.00% charge for Class C shares held under 365 days are in the fee table above; Class I carries neither.
• If you are watching the trend: the numbers to read next are the fill rate and shares tendered for the November 3 offer (annual report), and the Form N-PORT for July to September 2026, due late November.

A decision on a position this size is also a tax and portfolio decision: a repurchase is a taxable event, distributions are reported on Form 1099-DIV, and an adviser can see what a prorated exit does to the rest of your holdings.

FAQ

All figures are from Apollo Diversified Credit Fund's SEC filings (CIK 1676197) read on EDGAR on October 14, 2026: annual reports on Form N-CSR for 2024 and 2025 (accessions 0001193125-25-047112 and 0001398344-26-004660); the semiannual report on Form N-CSRS for the six months ended June 30, 2026 (0001398344-26-016399); Form N-23C-3 repurchase notices dated June 26, 2025 to September 24, 2026; Form N-PORT reports for December 31, 2025, March 31, 2026 and June 30, 2026 (0001049169-26-000393, -001344 and -002078); the prospectus on Form 486BPOS filed April 29, 2026 (0001193125-26-192295); and the supplement on Form 424B3 filed October 1, 2026 (0001193125-26-409949). Shares tendered are reported for the May and August 2026 offers only. Percentages of outstanding shares tendered, fill examples, ratios and sums are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.