The fund manages the securitization itself at a stated collateral management fee of zero, sparing shareholders a second layer of charges on the same assets.

August 10, 2026

Apollo Debt Solutions BDC has pulled another $514.9 million of long-dated leverage onto its balance sheet, closing a term debt securitization on August 6 through ADL CLO 3 LLC, an indirect wholly owned subsidiary that the fund consolidates.

The collateral is a diversified pool made up primarily of first-lien commercial loans. Citigroup Global Markets acted as initial purchaser and, alongside Apollo Global Securities, as placement agent for the notes, issued under an indenture with Western Alliance Trust Company as collateral trustee.

The capital structure

The transaction divides into six tranches of notes plus a term loan, all of it floating off three-month SOFR:

• Class A-1a notes — $248.7 million, AAA(sf), SOFR plus 1.50%
• Class A-1b notes — $20.6 million, AAA(sf), SOFR plus 1.70%
• Class A-2 notes — $30.9 million, AA(sf), SOFR plus 1.85%
• Class B notes — $41.2 million, A(sf), SOFR plus 2.25%
• Class C notes — $30.9 million, BBB-(sf), SOFR plus 3.60%
• Subordinated notes — $92.6 million, no interest
• Class A-1a loans — $50.0 million, AAA(sf), SOFR plus 1.50%

The secured debt is scheduled to mature on July 15, 2038, while the subordinated notes run to 2126. The stack becomes redeemable on any business day on or after July 15, 2028, at the direction of ADL CLO 3 Depositor LLC, which holds a majority of the subordinated notes.

How much stays in house

The retention picture is the more telling detail for shareholders. The depositor entity serves as retention holder to satisfy U.S. rules obliging securitization sponsors to keep exposure to the assets they package, which require holding a portion of the subordinated notes. Apollo Debt Solutions went well past that minimum. Through the depositor, it retained:

• all of the Class B notes;
• all of the Class C notes;
• all of the subordinated notes;
• and part of the Class A-2 tranche.

That leaves outside investors holding the higher-rated top of the structure while the fund absorbs first losses on the pool it assembled. It also means the headline transaction size overstates the external financing actually raised.

A securitization with no fee attached

Apollo Debt Solutions itself serves as collateral manager to the issuer, and the collateral management fee under that agreement is set at 0.0% per annum of the fee basis amount. No separate management charge accrues at the securitization level so long as the fund holds the role, which keeps the structure from layering a second fee onto assets shareholders already pay to have managed.

Where the loans come from

Proceeds will be used in part to buy loans from the fund over time under a master loan sale agreement, with the fund transferring interests to the depositor and the depositor passing them to the issuer, which ends up holding the full ownership interest in the loans and participations. None of the debt is registered, so it cannot be offered or sold in the United States without registration or an exemption.

The securitization follows the fund’s move into the unsecured market weeks earlier. Taken together, the two transactions show a wealth-channel private credit vehicle building out term liabilities at pace, extending the maturity profile on the financing side while the assets those liabilities support are still being acquired.