Apollo Launches Tokenized Private Credit Fund with Over $730 Billion AUM
Apollo, managing over $730 billion in assets, has launched a tokenized private credit fund through the Apollo Diversified Credit Securitize Fund (ACRED). This offering marks the first public on-chain initiative for Apollo and Securitize's initial integration with the Solana blockchain and Ink layer-2 network.
Key points include:
- The Apollo Diversified Credit Fund holds more than $1.2 billion in managed assets.
- It invests in corporate direct lending and structured credit, delivering an 11.7% return in 2024, compared to approximately 4.5% for U.S. Treasuries.
- The fund features daily subscription and net asset value structures, optimizing it for blockchain markets.
- Tokenization of real-world assets is gaining momentum, with global private credit assets reaching around $2.1 trillion in 2023.
- Securitize has partnered with Wormhole for a multichain approach in tokenization.
Christine Moy from Apollo emphasized the fund's role in diversifying on-chain portfolios. Securitize CEO Carlos Domingo noted the growing demand for private credit tokens, which provide higher yields compared to traditional treasuries.
Moy anticipates further advancements in digital asset management through collaborations in the Web3 space, including treasury management and secondary liquidity solutions for alternative assets.