Apollo Trust's Assets Skyrocket to $522M on New Investments

TL;DR

**Apollo Origination II just went from zero to hero, deploying over half a billion in new investments, signaling a bullish stance on private credit.**

AI Summary

Apollo Origination II (UL) Capital Trust reported a significant increase in total assets to $522,470 thousand as of June 30, 2025, up from $2 thousand at December 31, 2024, primarily driven by new investments at fair value totaling $499,809 thousand. The company generated net investment income of $19,107 thousand for the six months ended June 30, 2025, with total investment income reaching $21,754 thousand. Expenses for the six-month period were $2,647 thousand, including $1,568 thousand in management fees. Net increase in net assets resulting from operations was $19,603 thousand for the six months, while net proceeds from the issuance of common shares contributed $500,755 thousand, leading to total net assets of $520,267 thousand. The company's investment portfolio is diversified across various industries, with significant holdings in Aerospace & Defense, Commercial Services & Supplies, and Health Care Providers & Services. Cash and cash equivalents also saw a substantial rise to $16,270 thousand from $2 thousand. The company's common shares outstanding increased dramatically to 20,004,751 from 60 shares at the beginning of the period.

Why It Matters

This filing reveals Apollo Origination II (UL) Capital Trust's rapid scaling, with assets surging from virtually nothing to over $522 million in six months. For investors, this indicates aggressive capital deployment and a strong appetite for new debt investments, potentially signaling confidence in the current credit market. Employees and customers of the underlying portfolio companies, such as MRO Holdings and Clarience Technologies, might see this as a sign of stable financing. In the broader market, this growth highlights the continued demand for private credit vehicles, potentially intensifying competition for deal flow among alternative asset managers like Apollo.

Risk Assessment

Risk Level: medium — The risk level is medium due to the rapid deployment of capital into a diverse portfolio of secured debt, which inherently carries credit risk, as evidenced by the net change in unrealized losses of $(109) thousand for the six months ended June 30, 2025. While the investments are primarily first lien secured debt, the concentration in specific industries like Commercial Services & Supplies ($60,863 thousand fair value) and Health Care Providers & Services ($45,305 thousand fair value) could expose the trust to sector-specific downturns.

Analyst Insight

Investors should closely monitor the performance of Apollo Origination II's underlying debt investments, particularly given the rapid asset growth. Evaluate the credit quality and industry exposure of the portfolio companies to assess potential default risks and interest rate sensitivities. Consider this trust as a vehicle for exposure to private credit, but be aware of the illiquidity and valuation complexities inherent in such investments.

Financial Highlights

debt To Equity

N/A

revenue

$21,754 thousand

operating Margin

N/A

total Assets

$522,470 thousand

total Debt

$2,203 thousand

net Income

$19,107 thousand

eps

$26.01

gross Margin

N/A

cash Position

$16,270 thousand

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $522.47M — Total Assets (Increased from $2 thousand at December 31, 2024, indicating massive growth.)
• $499.81M — Investments at Fair Value (Represents the bulk of the asset growth, showing significant capital deployment.)
• $19.11M — Net Investment Income (Generated for the six months ended June 30, 2025, demonstrating operational profitability.)
• $500.76M — Net Proceeds from Common Share Issuance (Primary source of capital for the investment growth.)
• $1.57M — Management Fees (Significant expense for the six months ended June 30, 2025.)
• $16.27M — Cash and Cash Equivalents (Substantial increase from $2 thousand, providing liquidity.)
• 20,004,751 — Common Shares Outstanding (Dramatic increase from 60 shares, reflecting new capital raises.)
• $26.01 — Net Asset Value Per Share (Reported as of June 30, 2025, providing a per-share valuation.)
• $109 thousand — Net Change in Unrealized Losses (Indicates some negative fair value adjustments on investments.)
• $60.86M — Commercial Services & Supplies Investments (Largest industry exposure in the investment portfolio.)

Key Players & Entities

• Apollo Origination II (UL) Capital Trust (company) — Registrant
• Securities and Exchange Commission (regulator) — Filing oversight
• MRO Holdings (company) — Portfolio investment in Aerospace & Defense
• Clarience Technologies (company) — Portfolio investment in Automobile Components
• AVI-SPL (company) — Portfolio investment in Commercial Services & Supplies
• Encore (company) — Portfolio investment in Commercial Services & Supplies
• Gannett Holdings, LLC (company) — Portfolio investment in Media
• $522,470 thousand (dollar_amount) — Total Assets as of June 30, 2025
• $19,107 thousand (dollar_amount) — Net Investment Income for six months ended June 30, 2025
• 20,004,751 (dollar_amount) — Common shares issued and outstanding as of June 30, 2025

FAQ

Risk Factors

• Investment Valuation Risk [medium — market]: The fair value of investments is subject to market fluctuations. As of June 30, 2025, the company reported a net change in unrealized losses of $109 thousand, indicating potential downward adjustments in investment values.
• Dependence on New Capital [high — financial]: The significant growth in assets from $2 thousand to $522,470 thousand is heavily reliant on new capital raised through common share issuance, totaling $500,755 thousand. A slowdown in capital raises could impede future investment.
• Management Fee Expenses [medium — operational]: Management fees represent a substantial expense, totaling $1,568 thousand for the six months ended June 30, 2025. High management fees can impact net investment income and overall profitability.
• Interest Rate Sensitivity [medium — market]: As a debt-focused investment vehicle, the trust's income and investment values are sensitive to changes in interest rates. Fluctuations in market interest rates can affect the yield on its investments and the fair value of its portfolio.
• Regulatory Compliance [low — regulatory]: As a capital trust, the company is subject to various financial regulations. Non-compliance could lead to penalties and reputational damage.

Industry Context

Apollo Origination II (UL) Capital Trust operates within the financial services sector, specifically as a vehicle for originating and investing in debt instruments. The competitive landscape is characterized by numerous credit funds and BDCs seeking to deploy capital in a yield-oriented environment. Industry trends favor specialized lending and alternative asset management, driven by a search for yield and diversification.

Regulatory Implications

As a capital trust, the entity is subject to financial regulations governing investment vehicles, including disclosure requirements and capital adequacy rules. Compliance is crucial to maintain investor confidence and avoid penalties. The significant increase in assets and share issuances may attract increased regulatory scrutiny.

What Investors Should Do

1. Monitor capital raise sustainability
2. Analyze investment portfolio diversification and performance
3. Evaluate expense management, particularly management fees
4. Assess unrealized gains/losses trends

Key Dates

• 2025-06-30: End of Six-Month Reporting Period — Key period for financial performance review, showing substantial asset growth and net investment income generation.
• 2025-06-30: Consolidated Statements of Assets and Liabilities Filed — Reflects the dramatic increase in total assets to $522,470 thousand from $2 thousand, driven by new investments and share issuances.
• 2025-06-30: Consolidated Statements of Operations Filed — Details the generation of $19,107 thousand in net investment income and $19,603 thousand net increase in net assets from operations.
• 2025-06-30: Common Shares Outstanding at Period End — Indicates a massive increase to 20,004,751 shares from 60, reflecting significant capital raising activities.

Glossary

PIK interest income

Payment-in-kind interest income, where interest is accrued and added to the principal balance rather than paid in cash. (Contributes to total investment income but does not provide immediate cash flow.)

Net Asset Value Per Share

The value of a company's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share market value of the trust's holdings, reported at $26.01 as of June 30, 2025.)

Accumulated distributed earnings (losses)

The cumulative net income or loss of the company that has not been distributed to shareholders. (Shows the historical profitability or loss of the trust, which was $(93) thousand at the start of the period and $19,511 thousand at the end.)

Capital in excess of par value

The amount received from issuing shares above their par value. (Represents a significant portion of the trust's capital, growing from $2 thousand to $500,736 thousand due to share issuances.)

Year-Over-Year Comparison

Compared to December 31, 2024, Apollo Origination II (UL) Capital Trust has experienced explosive growth in total assets, surging from $2 thousand to $522.47 million as of June 30, 2025. This growth is primarily fueled by new investments ($499.81 million) and substantial net proceeds from common share issuances ($500.76 million), which also led to a dramatic increase in outstanding shares from 60 to over 20 million. Net investment income has been generated ($19.11 million), and cash reserves have significantly improved from $2 thousand to $16.27 million, indicating a successful period of capital deployment and operational setup.

Key Financial Figures

• $0.001 — 3 common shares of beneficial interest, $0.001 par value per share, outstanding. sha

Filing Documents

• ck0002052153-20250630.htm (10-Q) — 4712KB
• ck0002052153-ex31_1.htm (EX-31.1) — 18KB
• ck0002052153-ex31_2.htm (EX-31.2) — 17KB
• ck0002052153-ex32_1.htm (EX-32.1) — 10KB
• ck0002052153-ex32_2.htm (EX-32.2) — 10KB
• 0000950170-25-107409.txt ( ) — 14104KB
• ck0002052153-20250630.xsd (EX-101.SCH) — 1038KB
• ck0002052153-20250630_htm.xml (XML) — 2692KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (Unaudited) 1 Consolidated Statements of Assets and Liabilities as of June 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations for the three and six months ended June 30, 2025 (Unaudited) 2 Consolidated Statements of Changes In Net Assets for the three and six months ended June 30, 2025 (Unaudited) 3 Consolidated Statement of Cash Flows for the six months ended June 30, 2025 (Unaudited) 4 Consolidated Schedule of Investments as of June 30, 2025 (Unaudited) 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 20 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.

Controls and Procedures

Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 43 Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 3. Defaults Upon Senior Securities 43 Item 4. Mine Safety Disclosures 43 Item 5. Other Information 43 Item 6. Exhibits 44

Signatures

Signatures 45 Table of Contents Table of Contents

FINA NCIAL INFORMATION

PART I. FINA NCIAL INFORMATION In this report, the terms the "Company," "we," "us" and "our" refer to Apollo Origination II (UL) Capital Trust unless the context specifically states otherwise.

Consol idated Financial Statements

Item 1. Consol idated Financial Statements APOLLO ORIGINATION II (UL) CAPITAL TRUST CONSOLIDATED STA TEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) June 30, 2025 December 31, 2024 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliated investments (cost - $ 499,937 and $ 0 at June 30, 2025 and December 31, 2024, respectively) $ 499,809 $ — Cash and cash equivalents 16,270 2 Receivable for investments sold 3,051 — Interest receivable 3,261 — Other assets 79 — Total Assets $ 522,470 $ 2 Liabilities Payable for investments purchased 685 — Administration fees payable 239 8 Professional fees payable — 65 Management fees payable 999 — Accrued organizational costs 14 20 Other liabilities and accrued expenses 266 — Total Liabilities $ 2,203 $ 93 Commitments and contingencies ( Note 6 ) Total Net Assets $ 520,267 $ ( 91 ) Net Assets Common stock, $ 0.001 par value (Unlimited shares authorized; 20,004,751 and 60 shares issued and outstanding, respectively) $ 20 $ 0 * Capital in excess of par value 500,736 2 Accumulated distributed earnings (losses) 19,511 ( 93 ) Total Net Assets $ 520,267 $ ( 91 ) Net Asset Value Per Share $ 26.01 $ N/A * Rounded value See notes to the consolidated financial statements. 1 Table of Contents Table of Contents APOLLO ORIGINATI ON II (UL) CAPITAL TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2025 Investment Income Non-controlled/non-affiliated investments: Interest income (excluding payment-in-kind ("PIK") interest income) $ 11,757 $ 20,564 PIK interest income 272 348 Dividend income 212 438 Other income 247 404 Total Investment Income $ 12,488 $ 21,754

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View this 10-Q filing on SEC EDGAR