Apollo Debt Solutions BDC Assets Soar to $24.6B on Investment Growth

TL;DR

**Apollo Debt Solutions BDC is aggressively expanding, but watch that NAV dip and rising debt – it's a high-growth, high-leverage play.**

AI Summary

Apollo Debt Solutions BDC reported a significant increase in total assets to $24.63 billion as of September 30, 2025, up from $15.24 billion at December 31, 2024, driven primarily by a surge in investments at fair value to $22.49 billion from $14.56 billion. Net investment income for the nine months ended September 30, 2025, rose to $758.74 million, a substantial increase from $485.29 million in the prior year period, reflecting higher interest income from non-controlled/non-affiliated investments, which reached $1.31 billion. Total expenses also increased to $592.12 million from $368.20 million, with interest and other debt expenses being the largest component at $324.81 million. The company experienced a net realized loss of $234.82 million for the nine months ended September 30, 2025, compared to a loss of $40.56 million in the same period of 2024, largely due to foreign currency forward contracts. Despite this, net assets increased to $14.27 billion from $9.55 billion, fueled by $4.89 billion in capital share transactions. The Net Asset Value per share for all classes (S, D, I) slightly decreased to $24.52 from $24.86.

Why It Matters

Apollo Debt Solutions BDC's substantial asset growth and increased investment income signal robust activity in the private credit market, which could attract more institutional and retail investors seeking yield. The significant increase in debt to $8.21 billion from $4.93 billion, while supporting asset expansion, also introduces higher leverage risk, potentially impacting the company's competitive position against less leveraged BDCs. For employees, this growth suggests stability and potential expansion, while customers benefit from continued access to debt financing. The slight decline in NAV per share, despite overall asset growth, warrants investor attention, indicating potential dilution or valuation pressures in a competitive landscape.

Risk Assessment

Risk Level: high — The risk level is high due to the significant increase in debt to $8.21 billion as of September 30, 2025, from $4.93 billion at December 31, 2024, representing a 66.5% increase. Additionally, the company reported a net realized loss of $234.82 million for the nine months ended September 30, 2025, primarily from foreign currency forward contracts, indicating exposure to market volatility and derivative risks.

Analyst Insight

Investors should scrutinize Apollo Debt Solutions BDC's leverage ratios and the quality of its investment portfolio given the substantial increase in debt and net realized losses. While growth is evident, a deeper dive into the underlying credit quality of their $22.49 billion investment portfolio is crucial to assess the sustainability of future income and mitigate potential downside risks.

Financial Highlights

debt To Equity

0.58

revenue

$1.31B

operating Margin

N/A

total Assets

$24.63B

total Debt

$8.21B

net Income

$758.74M

eps

$24.52

gross Margin

N/A

cash Position

$721.45M

revenue Growth

+61.1%

Revenue Breakdown

Key Numbers

• $24.63B — Total Assets (Increased from $15.24B at Dec 31, 2024, indicating significant growth.)
• $758.74M — Net Investment Income (9 months) (Up from $485.29M in the prior year, showing strong operational performance.)
• $8.21B — Total Debt (Increased from $4.93B at Dec 31, 2024, reflecting higher leverage.)
• $234.82M — Net Realized Losses (9 months) (Worsened from a loss of $40.56M in prior year, mainly due to derivatives.)
• $14.27B — Total Net Assets (Increased from $9.55B at Dec 31, 2024, supported by capital share transactions.)
• $24.52 — Net Asset Value Per Share (Slightly decreased from $24.86 at Dec 31, 2024.)
• $1.31B — Interest Income (9 months) (Increased from $813.27M in prior year, driving investment income growth.)
• $592.12M — Total Expenses (9 months) (Increased from $368.20M in prior year, largely due to interest expenses.)

Key Players & Entities

• Apollo Debt Solutions BDC (company) — Registrant
• $24.63 billion (dollar_amount) — Total assets as of September 30, 2025
• $15.24 billion (dollar_amount) — Total assets as of December 31, 2024
• $22.49 billion (dollar_amount) — Investments at fair value as of September 30, 2025
• $14.56 billion (dollar_amount) — Investments at fair value as of December 31, 2024
• $758.74 million (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $485.29 million (dollar_amount) — Net investment income for nine months ended September 30, 2024
• $8.21 billion (dollar_amount) — Debt as of September 30, 2025
• $4.93 billion (dollar_amount) — Debt as of December 31, 2024
• $234.82 million (dollar_amount) — Net realized losses for nine months ended September 30, 2025

FAQ

Risk Factors

• Increased Leverage [high — financial]: Total debt increased by $3.28 billion to $8.21 billion as of September 30, 2025, from $4.93 billion at December 31, 2024. This substantial increase in leverage amplifies financial risk.
• Worsening Realized Losses [high — financial]: Net realized losses increased significantly to $234.82 million for the nine months ended September 30, 2025, from $40.56 million in the prior year period. This deterioration is largely attributed to foreign currency forward contracts.
• Foreign Currency Fluctuations [medium — market]: The company experienced unrealized appreciation on foreign currency forward contracts of $7.705 million as of September 30, 2025, down from $34.954 million at December 31, 2024. However, these contracts were a primary driver of realized losses, indicating sensitivity to currency markets.
• Increased Operating Expenses [medium — operational]: Total expenses rose to $592.12 million for the nine months ended September 30, 2025, from $368.20 million in the prior year. Interest and other debt expenses, totaling $324.81 million, represent the largest component of this increase.
• Dilution in NAV Per Share [medium — financial]: Despite an increase in total net assets, the Net Asset Value per share slightly decreased to $24.52 from $24.86. This suggests that the growth in net assets may not be keeping pace with the increase in outstanding shares or other dilutive factors.

Industry Context

The Business Development Company (BDC) sector is characterized by its focus on providing capital to small and medium-sized enterprises, often through debt and equity investments. Companies in this space typically operate with significant leverage and are sensitive to interest rate movements and credit market conditions. The competitive landscape involves numerous BDCs vying for attractive investment opportunities, with differentiation often coming from sector specialization or unique financing structures.

Regulatory Implications

As a BDC, Apollo Debt Solutions is subject to regulations under the Investment Company Act of 1940, which imposes certain leverage limits and asset coverage requirements. Changes in accounting standards or regulatory interpretations could impact reported financial results and operational flexibility. Compliance with these regulations is crucial for maintaining its status and investor confidence.

What Investors Should Do

1. Monitor leverage levels closely.
2. Analyze the drivers of realized losses.
3. Evaluate the impact of capital share transactions on NAV per share.
4. Assess the sustainability of investment income growth.

Glossary

BDC

Business Development Company. A type of closed-end investment company that invests in small and medium-sized businesses and financially troubled companies. (Apollo Debt Solutions BDC operates under this structure, which is subject to specific regulatory requirements.)

Net Asset Value (NAV) per Share

The market value of a company's assets minus its liabilities, divided by the number of outstanding shares. (Indicates the per-share value of the company's holdings and is a key metric for investors to assess the company's performance and valuation.)

Non-controlled/non-affiliated investments

Investments in companies where Apollo Debt Solutions BDC does not have a controlling interest or affiliation. (This category represents the largest portion of the company's investment portfolio and is a primary driver of its investment income.)

Foreign currency forward contracts

Agreements to buy or sell a specific amount of currency at a predetermined exchange rate on a future date. (These financial instruments were a significant factor in the company's net realized losses during the period.)

Capital share transactions

Activities related to the issuance or repurchase of the company's own shares. (These transactions significantly contributed to the increase in the company's total net assets.)

Year-Over-Year Comparison

Apollo Debt Solutions BDC has experienced substantial growth in its asset base, with total assets increasing from $15.24 billion to $24.63 billion. This growth is mirrored in net investment income, which rose from $485.29 million to $758.74 million, driven by higher interest income. However, this expansion has come with increased leverage, as total debt climbed from $4.93 billion to $8.21 billion, and a significant worsening of net realized losses, primarily due to derivatives. Despite an increase in total net assets, the Net Asset Value per share saw a slight decrease, indicating a mixed performance in per-share value.

Key Financial Figures

• $0.01 — ares of the Registrant's Common Shares, $0.01 par value per share, outstanding as of

Filing Documents

• ck0001837532-20250930.htm (10-Q) — 35020KB
• ck0001837532-ex10_10.htm (EX-10.10) — 45KB
• ck0001837532-ex31_1.htm (EX-31.1) — 18KB
• ck0001837532-ex31_2.htm (EX-31.2) — 18KB
• ck0001837532-ex32_1.htm (EX-32.1) — 9KB
• ck0001837532-ex32_2.htm (EX-32.2) — 9KB
• 0001193125-25-277723.txt ( ) — 87038KB
• ck0001837532-20250930.xsd (EX-101.SCH) — 3779KB
• ck0001837532-20250930_htm.xml (XML) — 27806KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited ) 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Schedule of Investments as of September 30, 2025 (Unaudited) 7 Consolidated Schedule of Investments as of December 31, 2024 72

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 130 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 172 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 189 Item 4.

Controls and Procedures

Controls and Procedures 190

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 191 Item 1A.

Risk Factors

Risk Factors 191 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 192 Item 3. Defaults Upon Senior Securities 192 Item 4. Mine Safety Disclosures 192 Item 5. Other Information 192 Item 6. Exhibits 193

Signatures

Signatures 194 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION In this report, the terms the " Company ," " ADS ," " we ," " us " and " our " refer to Apollo Debt Solutions BDC unless the context specifically states otherwise.

Consolidated Financial Statements

Item 1. Consolidated Financial Statements APOLLO DEBT SOLUTIONS BDC CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data) September 30, 2025 December 31, 2024 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliated investments (cost — $ 22,294,362 and $ 14,609,338 at September 30, 2025 and December 31, 2024, respectively) $ 22,491,891 $ 14,555,535 Cash and cash equivalents 721,449 392,894 Foreign currencies (cost — $ 140,917 and $ 19,951 at September 30, 2025 and December 31, 2024, respectively) 139,151 19,946 Receivable for investments sold 798,256 99,697 Interest receivable 188,615 106,825 Unrealized appreciation on foreign currency forward contracts 7,705 34,954 Other assets 284,074 25,537 Total assets $ 24,631,141 $ 15,235,388 Liabilities Debt (net of deferred financing costs and unamortized original issue discount of $ 61,163 and $ 40,544 at September 30, 2025 and December 31, 2024, respectively) $ 8,208,453 $ 4,932,183 Payable for investments purchased 1,485,492 455,314 Payable for share repurchases (Note 7) 399,115 62,447 Distributions payable 117,646 75,842 Interest payable 95,092 104,284 Management fees payable 15,026 10,204 Performance-based incentive fees payable 40,384 28,523 Accrued administrative services expense payable 778 115 Other liabilities and accrued expenses 2,999 19,980 Total liabilities $ 10,364,985 $ 5,688,892 Commitments and contingencies (Note 8) Total Net Assets $ 14,266,156 $ 9,546,496 Net Assets Common shares, $ 0.01 par value ( 581,849,974 and 384,043,002 shares issued and outstanding, respectively) $ 5,818 $ 3,840 Capital in excess of par value 14,334,371 9,449,937 Accumulated distributed earnings (losses) ( 74,033 ) 92,718 Total Net Assets $ 14,266,156 $ 9,546,496 Net Asset Value Per

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