Apollo Asset Backed Credit Co. Soars with 328% Asset Growth

TL;DR

**Apollo Asset Backed Credit Co is on a tear, with massive asset growth and surging income, making it a strong buy for growth-oriented investors despite some FX headwinds.**

AI Summary

Apollo Asset Backed Credit Company LLC reported a significant increase in total net assets, reaching $1,186,946 thousand as of September 30, 2025, up from $277,221 thousand at December 31, 2024, representing a 328% increase. Total investment income for the nine months ended September 30, 2025, surged to $34,357 thousand, a substantial rise from $1,745 thousand in the same period of 2024. Net investment income also saw a dramatic increase to $20,775 thousand for the nine months ended September 30, 2025, compared to $1,252 thousand in the prior year. The company experienced a net increase in net assets from operations of $41,149 thousand for the nine months ended September 30, 2025, a significant jump from $1,392 thousand in 2024. This growth was primarily driven by substantial proceeds from the issuance of shares, totaling $919,772 thousand for the nine months ended September 30, 2025, and a considerable increase in investments at fair value to $1,049,328 thousand from $213,457 thousand. However, the company also reported net realized and unrealized losses on foreign currency transactions totaling $4,370 thousand for the nine months ended September 30, 2025. Total liabilities increased to $48,967 thousand from $19,649 thousand, reflecting increased operational scale.

Why It Matters

This filing reveals Apollo Asset Backed Credit Co LLC's aggressive expansion, with total net assets skyrocketing over 300% in less than a year. For investors, this signals strong capital inflows and a rapidly growing asset base, potentially leading to increased future earnings and distributions. The substantial increase in investment income and net investment income suggests effective asset deployment by the Operating Manager, which could enhance investor returns. However, the significant foreign currency losses highlight a potential risk for investors, especially given the global nature of asset-backed credit. The competitive landscape for asset-backed credit is intense, and Apollo's rapid growth indicates a strong position, but also increased operational complexity and potential for higher risk exposure.

Risk Assessment

Risk Level: medium — The risk level is medium due to the rapid expansion and significant foreign currency losses. While total assets grew by 328% to $1,235,913 thousand, the net realized and unrealized losses on foreign currency transactions amounted to $4,370 thousand for the nine months ended September 30, 2025, indicating exposure to currency volatility. The substantial increase in derivative assets and liabilities also suggests a more complex risk profile.

Analyst Insight

Investors should consider this filing as a strong indicator of growth and operational efficiency. The significant increase in net assets and investment income suggests a robust strategy. However, they should monitor the company's exposure to foreign currency fluctuations and derivative risks, as these could impact future performance. A deeper dive into the specific asset-backed finance assets and the Operating Manager's strategy would be prudent.

Financial Highlights

debt To Equity

N/A

revenue

$34.36M

operating Margin

N/A

total Assets

$1.19B

total Debt

$48.97M

net Income

$20.78M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Key Numbers

• $1.19B — Total Net Assets (Increased from $277.2M at Dec 31, 2024, representing 328% growth.)
• $34.36M — Total Investment Income (For the nine months ended Sep 30, 2025, up from $1.75M in 2024.)
• $20.78M — Net Investment Income (For the nine months ended Sep 30, 2025, up from $1.25M in 2024.)
• $919.77M — Proceeds from Share Issuance (For the nine months ended Sep 30, 2025, indicating strong capital raising.)
• $1.05B — Investments at Fair Value (As of Sep 30, 2025, significantly up from $213.46M at Dec 31, 2024.)
• $4.37M — Net FX Losses (Net realized and unrealized losses on foreign currency transactions for nine months ended Sep 30, 2025.)
• $41.15M — Net Increase in Net Assets from Operations (For the nine months ended Sep 30, 2025, up from $1.39M in 2024.)
• $48.97M — Total Liabilities (As of Sep 30, 2025, increased from $19.65M at Dec 31, 2024.)

Key Players & Entities

• Apollo Asset Backed Credit Company LLC (company) — registrant
• Operating Manager (company) — manages assets and operations
• SEC (regulator) — U.S. Securities and Exchange Commission
• $1,186,946 thousand (dollar_amount) — Total net assets as of September 30, 2025
• $277,221 thousand (dollar_amount) — Total net assets as of December 31, 2024
• $34,357 thousand (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $1,745 thousand (dollar_amount) — Total investment income for nine months ended September 30, 2024
• $20,775 thousand (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $919,772 thousand (dollar_amount) — Proceeds from issuance of shares for nine months ended September 30, 2025
• $4,370 thousand (dollar_amount) — Net realized and unrealized losses on foreign currency transactions for nine months ended September 30, 2025

FAQ

Risk Factors

• Interest Rate Environment Changes [medium — market]: The company's performance is sensitive to changes in the general interest rate environment. Fluctuations in interest rates can impact the value of its asset-backed finance assets and its financing costs. The company's ability to manage these risks is crucial for maintaining profitability.
• Dependence on Operating Manager [high — operational]: The company's future success is significantly dependent on the Operating Manager's ability to source adequate acquisition and lending opportunities, efficiently deploy capital, and manage asset-backed finance assets. Any deficiencies in the Operating Manager's performance could materially impact the company's results.
• Capital Raising and Financing [high — financial]: The company's ability to raise sufficient capital to execute its acquisition and lending strategies is a key factor. Reliance on current and expected financing arrangements and the adequacy of cash resources are critical for its operational continuity and growth.
• Economic Dependence [medium — market]: The company's success is tied to the general economy and its effect on the industries in which it acquires, controls, and manages asset-backed finance assets. A downturn in the broader economy could negatively affect the performance of its investments.
• Use of Financial Leverage [medium — financial]: The company's use of financial leverage introduces potential risks. While leverage can amplify returns, it also magnifies potential losses and increases financial obligations, making the company more vulnerable to adverse market conditions.
• Tax Legislation Changes [low — regulatory]: Changes to tax legislation could affect the company's ability to structure acquisitions in a tax-efficient manner. The tax status of the enterprises through which it operates is also a consideration.
• Conflicts of Interest [medium — legal]: Potential conflicts of interest with the Operating Manager or its affiliates could arise, impacting the company's operations and investment decisions. The company must manage these relationships carefully to ensure alignment with shareholder interests.

Industry Context

The asset-backed credit market is characterized by its reliance on securitization of various loan types. Companies in this sector typically generate income from interest payments and fees associated with managing these assets. The industry is sensitive to interest rate fluctuations, credit quality of underlying assets, and overall economic conditions. Recent trends show a strong demand for credit, driving significant capital inflows into specialized credit funds.

Regulatory Implications

Apollo Asset Backed Credit Company LLC operates within a regulated financial environment. Key considerations include compliance with securities laws, capital adequacy requirements, and reporting standards for investment companies. Changes in tax legislation and potential conflicts of interest with management also present regulatory and compliance challenges.

What Investors Should Do

1. Monitor the performance and strategy execution of the Operating Manager, as it is critical to the company's growth and success.
2. Analyze the impact of interest rate changes on the company's investment portfolio and financing costs, given the sensitivity of asset-backed securities.
3. Evaluate the company's capital raising activities and its ability to deploy new capital effectively into attractive investment opportunities.
4. Assess the ongoing net realized and unrealized losses on foreign currency transactions and their potential impact on profitability.
5. Review the company's leverage levels and debt structure to understand its financial risk profile.

Key Dates

• 2025-09-30: Consolidated Statements of Assets and Liabilities — Reports total net assets of $1,186,946 thousand and total liabilities of $48,967 thousand.
• 2025-09-30: Consolidated Statements of Operations — Reports total investment income of $34,357 thousand and net investment income of $20,775 thousand for the nine months ended.
• 2025-09-30: Consolidated Statements of Changes in Net Assets — Shows a net increase in net assets from operations of $41,149 thousand for the nine months ended.
• 2025-09-30: Consolidated Statement of Cash Flows — Details cash flows for the nine months ended, including proceeds from share issuance of $919,772 thousand.
• 2025-09-30: Consolidated Condensed Schedule of Investments — Lists investments at fair value totaling $1,049,328 thousand.

Glossary

Asset-Backed Finance Assets

Financial assets that are backed by a pool of underlying assets, such as loans or receivables, which are securitized and sold to investors. (These are the core investments managed by Apollo Asset Backed Credit Company LLC, and their performance directly impacts the company's financial results.)

Operating Manager

An entity responsible for managing the day-to-day operations of the company, including sourcing investments, deploying capital, and managing assets. (The company's success is heavily reliant on the capabilities and performance of its Operating Manager.)

Net Assets

The total assets of a company minus its total liabilities. It represents the net worth of the company. (A key indicator of the company's overall financial health and growth, which has seen significant expansion.)

Investment Income

Revenue generated from a company's investments, including interest, dividends, and capital gains. (The primary source of revenue for Apollo Asset Backed Credit Company LLC, showing substantial growth.)

Net Investment Income

Investment income minus operating expenses. (Represents the profitability of the company's core investment activities after accounting for operational costs.)

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (Used to value the company's investment portfolio, reflecting current market conditions.)

Realized and Unrealized Losses

Losses that occur when an asset is sold for less than its purchase price (realized) or when the market value of an asset decreases below its carrying value (unrealized). (These losses, particularly on foreign currency, impact the company's net income and overall asset value.)

Year-Over-Year Comparison

Compared to the prior year period, Apollo Asset Backed Credit Company LLC has experienced explosive growth. Total net assets surged by 328% to $1.19 billion, driven by substantial proceeds from share issuance ($919.77 million). Total investment income and net investment income also saw dramatic increases, reflecting the expanded scale of operations and investments. While liabilities have also increased to $48.97 million, the growth in net assets from operations indicates strong performance, though net foreign currency losses were noted.

Filing Documents

• ck0002000597-20250930.htm (10-Q) — 11826KB
• ck0002000597-ex31_1.htm (EX-31.1) — 14KB
• ck0002000597-ex31_2.htm (EX-31.2) — 14KB
• ck0002000597-ex32_1.htm (EX-32.1) — 8KB
• ck0002000597-ex32_2.htm (EX-32.2) — 8KB
• 0001193125-25-280899.txt ( ) — 41484KB
• ck0002000597-20250930.xsd (EX-101.SCH) — 1544KB
• ck0002000597-20250930_htm.xml (XML) — 12915KB

Financial Statements

Financial Statements 1 Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and as of December 31, 2024 1 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 Statement of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 6 Consolidated Condensed Schedule of Investments as of September 30, 2025 (Unaudited) 7 Consolidated Condensed Schedule of Investments as of December 31, 2024 10

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 13 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 42 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 55 Item 4.

Controls and Procedures

Controls and Procedures 55 Part II . Other Information 57 Item 1.

Legal Proceedings

Legal Proceedings 57 Item 1A.

Risk Factors

Risk Factors 57 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 57 Item 3. Defaults Upon Senior Securities 57 Item 4. Mine Safety Disclosures 57 Item 5. Other Information 57 Item 6. Exhibits 58 Special Note Regarding Forward-Looking Statements Some of the statements in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the " Securities Act "), and Section 21E of the Securities Exchange Act of 1934, as amended (the " Exchange Act "), because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Quarterly Report on Form 10-Q may include statements as to: our future operating results; our business prospects and the prospects of the Asset-Backed Finance Assets (as defined below) we acquire, control and manage; our ability to raise sufficient capital to execute our acquisition and lending strategies; the ability of the Operating Manager (as defined below) to source adequate acquisition and lending opportunities to efficiently deploy capital; the ability of our Asset-Backed Finance Assets to achieve their objectives; our current and expected financing arrangements; changes in the general interest rate environment; the adequacy of our cash resources, financing sources and working capital; the timing and amount of cash flows, distributions and dividends, if any, from our Asset-Backed Finance Assets; our contractual arrangements and relationships with third parties; actual and potential conflicts of interest with the Operating Manager or any of its affiliates; the dependence of our future success on the general economy and its effect on the industries in which we acquire, control and manage Asset-Backed Finance Assets; our use of financial leverage; the ability of the Operating Manager to identify, acquire and manage our A

Financial In formation

Part I. Financial In formation

Financ ial Statements

Item 1. Financ ial Statements Apollo Asset Backed Credit Company LLC Consolidated Statements of Assets a nd Liabilities (in thousands, except share and per share data) As of Sep 30, 2025 (Unaudited) As of Dec 31, 2024 Series I Series II Total Series I Series II Total Assets Investments at fair value $ 228,579 $ 820,749 $ 1,049,328 $ 62,055 $ 151,402 $ 213,457 (cost at September 30, 2025 of $ 222,479 ; $ 800,958 ; $ 1,023,437 , respectively and at December 31, 2024 of $ 62,730 ; $ 152,686 ; $ 215,416, respectively) Derivative assets, at fair value 9,980 35,835 45,815 3,099 7,562 10,661 (cost at September 30, 2025 of $ 9,851 ; $ 34,175 ; $ 44,026 , respectively and at December 31, 2024 of $ 2,553 ; $ 6,448 ; $ 9,001 , respectively) Cash and cash equivalents 18,668 61,143 79,811 16,817 41,770 58,587 Due from Operating Manager 2,375 8,529 10,904 1,767 4,312 6,079 Interest receivable 1,683 9,423 11,106 406 948 1,354 Deferred offering expenses 502 1,804 2,306 810 1,976 2,786 Capital subscriptions receivable - 198 198 540 - 540 Dividends receivable 1,971 7,078 9,049 - - - Receivable for investments sold 2,503 8,986 11,489 5 11 16 Prepaid expenses and other assets 3,523 12,384 15,907 1,026 2,364 3,390 Total assets $ 269,784 $ 966,129 $ 1,235,913 $ 86,525 $ 210,345 $ 296,870 Liabilities Derivative liabilities, at fair value $ 1,430 $ 5,135 $ 6,565 $ 38 $ 93 $ 131 (cost at September 30, 2025 of $ 0 ; $ 0 ; $ 0 , respectively and at December 31, 2024 of $ 6 ; $ 20 ; $ 26 , respectively) Notes payable 778 848 1,626 751 751 1,502 Payable for investments purchased 1,052 3,778 4,830 1,409 3,436 4,845 Due to Operating Manager 3,016 10,828 13,844 2,133 5,205 7,338 Distributions payable 1,062 5,327 6,38

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