Apollo Asset Backed Credit Co LLC Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Apollo Asset Backed Credit Co LLC performed this year. My goal is to turn complex financial filings into plain English so you can decide if this fits your investment strategy.

1. What does this company do?

Think of Apollo as a sophisticated middleman for credit. Instead of lending money like a traditional bank, they invest in bundles of debt, such as consumer loans, aircraft leases, and corporate debt. They manage these bundles to generate returns for investors. The company operates through two "Series" (Series I and Series II), which act as separate buckets for different investments. As of December 31, 2025, they managed a portfolio worth about $1.2 billion.

2. Financial performance

Apollo invests globally, holding assets in the U.S., Ireland, Germany, and beyond. This year, they earned $84.2 million in profit from their investments. Their success depends on the health of the underlying loans, which currently earn an average return of 9.4%. They use financial tools like interest rate swaps to protect against market swings. These tools help defend their 7.8% profit margin from changes in interest rates and foreign currency values.

3. Major wins and challenges

The big story this year is the growth of "Series II." As of March 2026, Series II has 42 million shares outstanding, while Series I has 18 million. This shows a shift toward newer, higher-yielding investments. A major challenge is valuing these assets. Since 85% of their investments aren't traded on public exchanges, the company uses internal models and third-party appraisals to estimate their value. As an investor, you must rely on these internal estimates, which can change during quarterly audits and cause the value of your investment to fluctuate.

4. Financial health

Apollo carries a significant amount of debt, with a debt-to-equity ratio of 1.4x. They use $300 million in credit lines to build their portfolios before packaging them into larger investments. While they have $65 million in cash, they are sensitive to interest rate changes. Since 92% of their debt has a floating interest rate, a 1% rise in rates could cut their annual profit by about $4.2 million, which directly affects their ability to pay dividends.

5. Key risks

The biggest risk is "valuation risk." Because they hold private, complex assets, they may struggle to sell them quickly if the market freezes. Additionally, they face credit risk, with 2.1% of their consumer loans currently overdue. Most importantly, you have no voting power. You cannot vote for directors or influence company policy. The company can also change fee structures or investment goals without your approval.

6. Future outlook

Apollo is in growth mode. They issued 12 million new shares this year to fund Series II. They aim for a 10–12% return on new investments. The company plans to invest another $250 million over the next nine months, focusing on private credit in Europe and Australia.

Final Thought for Your Strategy: When considering this investment, weigh the potential for higher yields against the lack of liquidity and voting power. Because the company relies on internal models to value the majority of its assets, ensure you are comfortable with the fact that your investment's reported value is an estimate rather than a market-tested price. If you are looking for steady growth and are comfortable with a "hands-off" approach, this may fit your portfolio; however, keep a close eye on how interest rate fluctuations impact their dividend-paying capacity.