Apollo Debt Solutions (ADS), managed by Apollo Global Management, said in a shareholder letter that it anticipates greater performance dispersion among business development companies (BDCs) over the coming quarters.

ADS emphasized that while the structure of non-traded BDCs gives individual investors access to senior secured lending—one of the most compelling segments of the private credit market—structure alone does not determine outcomes. Long-term performance depends on:

• Underwriting rigor
• Disciplined portfolio construction
• Careful balance sheet management

“After all, private credit is still just credit,” the firm noted.

ADS said it is well-positioned amid current market volatility, due to its focus on high-quality, large-cap corporate borrowers on a first-lien, senior secured basis, which it views as a more resilient segment of the market.