APOLLO LAUNCHES TOKENIZED PRIVATE CREDIT FUND

Last updated: June 20, 2025, 01:05 | Written by: Brian Kelly

The world of finance is constantly evolving, and the latest innovation is the convergence of traditional investment strategies with blockchain technology.In a move that signals a significant shift in the accessibility of private credit, Apollo Global Management, a powerhouse with over $730 billion in assets under management, has partnered with Securitize, a leading security token platform, to launch a tokenized private credit fund. Private equity firm Apollo Global Management has partnered with Securitize to launch a tokenized private credit fund, according to a Jan. 30 announcement. The Apollo Diversified Credit Securitize Fund (ACRED) will tokenize shares of its Apollo Diversified Credit Fund.This pioneering initiative, known as the Apollo Diversified Credit Securitize Fund (ACRED), is set to revolutionize how accredited and institutional investors access private credit markets.By leveraging the power of blockchain, Apollo aims to democratize access to its diversified global credit strategy, previously reserved for a select few. Apollo Launches Tokenized Private Credit Fund: A New Era for Alternative Investments In a groundbreaking move, Apollo, a leading global private equity and credit manager, has launched a tokenizedACRED will tokenize shares of Apollo Diversified Credit Fund. This partnership and launch with Securitize is an exciting milestone in our journey to make private markets more accessible and efficient, including Apollo Diversified Credit Fund which offersThe fund itself holds more than $1.2 billion and spans across corporate direct lending, asset-backed lending and structured credit, thus providing investors exposure to a range of corporate and asset-backed credit.

This bold step marks Apollo's first foray into on-chain offerings and highlights the growing trend of bringing real-world assets (RWAs) onto the blockchain. Meanwhile, dry powder in private equity was projected to reach a record $1. 6 trillion by the end of 2025. Apollo's tokenized fund launch coincides with a positive trend for digital assets, as investors are optimistic that the Trump administration will initiate a new phase for crypto markets, potentially driving up prices.With dry powder in private equity projected to reach a staggering $1.6 trillion by the end of 2025, the timing couldn't be more opportune.ACRED aims to provide investors with diversified exposure to global corporate and asset-backed credit markets.

What is the Apollo Diversified Credit Securitize Fund (ACRED)?

The Apollo Diversified Credit Securitize Fund (ACRED) is a tokenized feeder fund designed to provide accredited and institutional investors with access to Apollo's diversified global credit strategy.In essence, it tokenizes shares of the existing Apollo Diversified Credit Fund, making it easier to trade.Think of it as a digital representation of ownership in a pool of private credit assets.This fund offers a diverse portfolio of private credit assets, including direct loans to corporations and asset-backed securities.

Key Features of ACRED:

Tokenization: Represents ownership in Apollo's diversified credit portfolio as digital tokens.
Accessibility: Opens private credit investments to a wider range of accredited and institutional investors.
Diversification: Provides exposure to a broad range of corporate and asset-backed credit opportunities.
Liquidity: Potentially offers increased liquidity compared to traditional private credit investments (though liquidity will be subject to applicable transfer restrictions and secondary market development).
Blockchain-Based: Operates on multiple blockchain networks, including Ethereum, Solana, and Aptos.

The Power of Tokenization: Bridging Traditional Finance and Blockchain

Tokenization is the process of converting rights to an asset into a digital token that can be traded on a blockchain.In the context of private credit, tokenization unlocks several key benefits:

Increased Accessibility: Lower minimum investment amounts make private credit more accessible to a broader range of investors.
Enhanced Liquidity: Tokenized assets can be traded more easily on secondary markets, potentially improving liquidity compared to traditional private credit investments.
Improved Efficiency: Blockchain technology streamlines administrative processes, reducing costs and increasing transparency.
Fractional Ownership: Tokenization enables fractional ownership, allowing investors to allocate smaller portions of their portfolio to private credit.

For example, instead of needing to invest millions of dollars to participate in a private credit fund, tokenization might allow you to start with a significantly smaller investment, say $10,000 (though specific minimums will vary and investors should carefully review offering documents). Securitize, the BlackRock-backed tokenized real-world assets platform, has partnered with Apollo Global Management, a company listed on the New York Stock Exchange, to bring private credit on-chain. On Jan. 30, Apollo and Securitize announced the launch of the Apollo Diversified Credit Securitize Fund, known as ACRED, a feeder fund designed toThis democratization of access is a game-changer for the alternative investment landscape.

Securitize and Apollo: A Strategic Partnership

The partnership between Apollo and Securitize is a strategic alignment of expertise.Apollo brings its decades of experience in private credit investing, while Securitize provides the technological infrastructure for tokenization and digital asset management.

Securitize, backed by BlackRock, is a leading platform for tokenizing real-world assets.The company has already issued over $1 billion in tokenized assets and has a proven track record of working with institutional clients.Their platform provides the necessary tools for issuing, managing, and trading security tokens in a compliant and efficient manner.

Earl Hunt, Apollo Partner and President of Apollo Diversified Credit Fund, highlighted the significance of this partnership, stating it is ""an exciting milestone in our journey to make private markets more accessible and efficient.""

ACRED on Multiple Blockchains: Ethereum, Solana, Aptos, and More

The Apollo Diversified Credit Securitize Fund (ACRED) will be available on multiple blockchain networks, including Ethereum, Solana, and Aptos. Private equity firm Apollo Global Management has partnered with Securitize to launch a tokenized private credit fund, according to a Jan. 30 announcement. The Apollo Diversified Credit Securitize Fund (ACRED) will tokenize shares of its Apollo Diversified Credit Fund. It holds a diverse portfolio of private credit assets, including direct loans to corporations and asset-backed [ ]This multi-chain approach offers several advantages:

Wider Reach: Access to different blockchain ecosystems expands the potential investor base.
Flexibility: Investors can choose the blockchain that best suits their needs and preferences.
Diversification: Spreading the fund across multiple chains reduces the risk of relying on a single blockchain network.

The inclusion of Solana is particularly noteworthy, as it represents Securitize's initial integration with the Solana blockchain and Ink layer-2 network. Private equity firm Apollo Global Management has partnered with Securitize to launch a tokenized private credit fund, according to a Jan. 30 announcement. The Apollo Diversified CreditSolana is known for its high transaction speeds and low fees, making it a suitable platform for trading tokenized assets.

Why is Apollo Launching a Tokenized Private Credit Fund Now?

Several factors are driving the growing interest in tokenized real-world assets, including private credit:

Demand for Alternative Investments: Investors are increasingly seeking alternative investments, such as private credit, to diversify their portfolios and enhance returns.
Technological Advancements: Blockchain technology has matured to the point where it can reliably support the issuance and trading of tokenized assets.
Regulatory Clarity: Regulatory frameworks for digital assets are becoming more defined, providing greater certainty for investors and issuers.
Increased Digital Asset Adoption: Growing acceptance of digital assets is fostering innovation and driving the development of new financial products and services.

Moreover, the current market conditions are particularly favorable for private credit. Securitize has partnered with Apollo, managing $730 billion in assets, to launch tokenized investment opportunities, including the Apollo Diversified Credit Securitize Fund (ACRED). This initiative exemplifies the merger of traditional finance and blockchain technology. Securitize has issued over $1 billion in tokenized assets. ACRED offers access to a diversified global credit strategyWith interest rates rising and traditional fixed-income investments offering lower yields, investors are turning to private credit for higher returns and greater diversification.

Furthermore, the potential for a more crypto-friendly administration under Trump, could stimulate the entire digital asset market.

Who Can Invest in ACRED?Accreditation Requirements

The Apollo Diversified Credit Securitize Fund (ACRED) is generally available to accredited investors and qualified purchasers. Apollo, a top investment firm managing over $730 billion in assets, has launched its first tokenized private credit fund in collaboration with blockchain security token specialist Securitize. The Apollo Diversified Credit Securitize Fund (ACRED) marks Apollo s entry into on-chain offerings for accredited investors.These classifications are defined by securities regulations and are designed to protect less sophisticated investors from taking on excessive risk.Common accreditation requirements are based on income and net worth, intended to qualify someone who has the financial sophistication and risk tolerance for less liquid and potentially riskier investments. This partnership and launch with Securitize is an exciting milestone in our journey to make private markets more accessible and efficient, including Apollo Diversified Credit Fund which offers diversified exposure to a range of corporate and asset-backed credit, said Earl Hunt, Apollo Partner and President of Apollo Diversified Credit FundAlways consult with a financial advisor to see if you meet eligibility criteria for the fund.

Accreditation Requirements (U.S.Example):

Individual Income: Must have an individual income exceeding $200,000 in each of the two most recent years, or a joint income with a spouse exceeding $300,000 for those years, and a reasonable expectation of reaching the same income level in the current year.
Net Worth: Must have a net worth exceeding $1 million, either individually or jointly with a spouse, excluding the value of their primary residence.

It's crucial to understand these requirements before attempting to invest in ACRED or any similar private credit offering.

What are the Risks and Considerations?

While tokenized private credit offers exciting opportunities, it's essential to be aware of the potential risks and considerations:

Illiquidity: Despite the potential for increased liquidity, tokenized private credit investments may still be less liquid than traditional investments like stocks or bonds.Secondary markets for these tokens are still developing.
Regulatory Uncertainty: The regulatory landscape for digital assets is still evolving, and changes in regulations could impact the value of tokenized private credit investments.
Technology Risks: Blockchain technology is not immune to risks such as hacking, smart contract vulnerabilities, and network congestion.
Credit Risk: The underlying private credit assets are subject to credit risk, meaning that borrowers may default on their obligations.
Market Volatility: The value of tokenized assets can be volatile, and investors could lose money on their investments.

Before investing in ACRED or any tokenized private credit fund, it's crucial to conduct thorough due diligence, understand the risks involved, and consult with a qualified financial advisor.

How Does ACRED Align with Current Market Trends?

The launch of ACRED aligns with several key trends in the financial industry:

Growing Demand for Private Credit: Investors are increasingly allocating capital to private credit in search of higher yields and diversification.
Rise of Tokenization: Tokenization is transforming various asset classes, including real estate, art, and private equity.
Institutional Adoption of Blockchain: Institutional investors are increasingly embracing blockchain technology to improve efficiency and transparency.
Convergence of Traditional Finance and DeFi: The lines between traditional finance (TradFi) and decentralized finance (DeFi) are blurring as institutions explore the benefits of blockchain technology.

The Future of Tokenized Private Credit

The launch of the Apollo Diversified Credit Securitize Fund (ACRED) is just the beginning of a new era for private credit. Apollo Global Management launches tokenized private credit fund, ACRED, offering accredited investors access to private credit deals through blockchain technology. The fund operates on Solana and Ethereum, aligning with the growing private credit market and digital asset adoption trends.As blockchain technology matures and regulatory frameworks become clearer, we can expect to see more institutional investors embrace tokenization as a way to access and manage private credit assets.

In the future, tokenized private credit could:

Become More Liquid: As secondary markets for tokenized assets develop, liquidity could improve significantly.
Attract More Retail Investors: Lower minimum investment amounts could make private credit accessible to a wider range of retail investors.
Enable New Investment Strategies: Tokenization could enable new and innovative investment strategies that are not possible with traditional private credit investments.
Drive Greater Transparency: Blockchain technology could provide greater transparency into the performance and risk characteristics of private credit portfolios.

ACRED: A Step Towards Greater Accessibility and Efficiency

The partnership between Apollo and Securitize and the launch of ACRED represent a significant step toward democratizing access to private credit.By leveraging the power of blockchain technology, Apollo is making its diversified global credit strategy available to a wider range of investors, while also improving efficiency and transparency. The partnership will allow the launch of the Apollo Diversified Credit Securitize Fund (ACRED), offering tokenized investment opportunities to institutional and accredited investors. ACRED will go live on Ethereum, Solana, Aptos, and other blockchain networks, diversifying credit strategy and unlocking new opportunities.ACRED is set to go live on Ethereum, Solana, Aptos and other blockchain networks.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions regarding the launch of Apollo's tokenized private credit fund:

Q: What exactly is tokenized private credit?
A: Tokenized private credit involves representing investments in privately issued debt, like loans to businesses, as digital tokens on a blockchain. 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 billionThese tokens can then be traded more efficiently and potentially made accessible to a wider range of investors.
Q: Who is Securitize, and what role do they play?
A: Securitize is a technology firm specializing in tokenizing real-world assets (RWAs). Securitize, the BlackRock-backed tokenized real-world assets platform, has partnered with Apollo Global Management, a company listed on the New York Stock Exchange, to bring private credit on-chain.They provide the platform and technology for Apollo to issue and manage the tokens representing shares in the private credit fund.
Q: What are the benefits of investing in a tokenized private credit fund?
A: Potential benefits include increased accessibility (lower minimum investment amounts), enhanced liquidity compared to traditional private credit, and greater transparency through blockchain technology. Private equity firm Apollo Global Management has partnered with Securitize to launch a tokenized private credit fund, according to a Jan. 30 announcement. The Apollo Diversified Credit SecuritizeHowever, these benefits should be weighed against the risks.
Q: What are the eligibility requirements to invest in ACRED?
A: Generally, ACRED is available to accredited investors, who meet specific income or net worth requirements as defined by securities regulations.
Q: What are the risks associated with investing in ACRED?
A: Risks include illiquidity (despite tokenization), regulatory uncertainty, technology risks (e.g., hacking), credit risk associated with the underlying loans, and potential market volatility.

Conclusion: Embracing the Future of Finance with Apollo's Tokenized Private Credit Fund

Apollo's launch of the tokenized private credit fund, ACRED, in partnership with Securitize, marks a pivotal moment in the evolution of alternative investments.By bridging the gap between traditional finance and blockchain technology, Apollo is democratizing access to private credit and paving the way for a more inclusive and efficient financial ecosystem.

Key Takeaways:

Democratization of Private Credit: ACRED offers a broader range of investors access to Apollo's diversified credit strategy.
Innovation through Tokenization: Tokenization enhances liquidity, efficiency, and transparency.
Strategic Partnership: The collaboration between Apollo and Securitize combines expertise in private credit and blockchain technology.
Evolving Landscape: The tokenization of real-world assets is a growing trend with significant potential.
Risk Awareness: Investors must carefully consider the risks and regulations involved before investing in tokenized assets.

As the digital asset landscape continues to evolve, initiatives like ACRED will play a crucial role in shaping the future of finance. Securitize and Apollo have teamed up to launch a diversified credit fund. The Apollo Diversified Credit Securitize Fund, ACRED, goes live on Aptos, Avalanche, Ethereum, and Solana blockchains. Tokenization platform Securitize has partnered with $730 billion alternative asset manager Apollo to bring a new tokenized credit fund on-chain. Securitize announced on Jan. 30 that it [ ]It remains to be seen how secondary markets will develop, providing additional opportunities for liquidity for these types of investment products.If you are an accredited investor seeking to diversify your portfolio and explore the potential of private credit, ACRED is definitely an option to consider (after conducting thorough due diligence and consulting with a financial advisor). Apollo, an investment firm with over $730 billion in assets under management, is offering investors a new tokenized private credit fund with the help of security token specialist Securitize.This new tokenized private credit fund may just be the first of many moves that make access to these types of investment vehicles more accessible for individual investors.