Apollo's flagship private equity credit fund only met less than 30% of redemption requests in the second quarter Background: Apollo Debt Solution is a $15 billion BDC (Business Development Corporation) aimed at high net worth individual investors. In the second quarter, investors attempted to redeem $2.4 billion, accounting for approximately 17% of the fund's net asset value. Apollo set the redemption limit at 5%, but in reality, less than 30% of requests were fulfilled, compared to 11% in the first quarter. The trend is worsening rather than improving, Zooming in, the nine major private credit funds tracked by the Financial Times had investors attempting to redeem nearly $15 billion in the second quarter, with a total managed size of approximately $200 billion. However, they only met less than 40% of redemption requests, The core concern of capital outflow is the exposure to PE backed software companies - as AI erodes traditional businesses, the revenue stability of these companies is facing substantial questioning. Interestingly, the public market has rebounded and loan selling has eased, but redemptions are still accelerating. Wall Street analysts expect redemption pressure to continue until the end of the year, although some believe we are approaching peak, What I have been thinking about repeatedly is that the real problem has not yet arrived. In the interest rate environment of 2021 and 2022, a large number of private credit loans have floating interest rates. Many stressed borrowers delay interest payments through PIK (physical payment) terms instead of paying interest in cash, This postpones the pain, but it won't make it disappear - essentially rolling interest into the principal on a borrower who is already unable to repay their debt, refinancing these loans in a still high interest rate environment when they mature in the next 12 to 24 months, which would be unsightly for many names, especially those PE backed software companies that have already raised concerns. Worse still, Walsh and the Federal Reserve have hinted at the possibility of interest rate hikes this year, I would like to hear the opinions of industry insiders,