Apollo Global Management, a leading alternative investment manager, has partnered with Securitize to launch a tokenized private credit fund. This marks a significant step in the growing trend of tokenizing traditional assets, bringing greater transparency, efficiency, and accessibility to private market investments.
The Apollo Diversified Credit Securitize Fund (ACRED) will tokenize shares of Apollo’s existing Diversified Credit Fund, which invests in a range of private credit assets, including direct loans to corporations and asset-backed loans. By tokenizing these shares, Apollo aims to broaden investor access to private credit opportunities, which have historically been limited to institutional investors.
According to Apollo’s website, the fund generated an annualized return of more than 11% in the previous year and more than 5.5% since its start. Qualified investors have limited access.
The tokenized fund will operate on multiple blockchain networks, including Solana, Ethereum, Avalanche, Polygon, Aptos, and Ink, leveraging Securitize’s platform and its integration with Wormhole, a cross-chain interoperability protocol. This multi-chain approach will enhance liquidity and accessibility for investors across various blockchain ecosystems.
This initiative aligns with Apollo’s broader strategy of embracing blockchain technology and exploring innovative solutions for accessing private markets. By leveraging tokenization, Apollo aims to democratize access to private credit, making it more accessible to a wider range of investors.
This move by Apollo is a significant development in the growing field of tokenized assets, demonstrating the potential of blockchain technology to transform traditional finance. As the industry continues to evolve, we can expect to see more innovative financial products and services leveraging the power of blockchain.
