Apollo Diversified Credit Securitize Fund (ACRED) Cryptocurrency Market Data and Information

What is Apollo Diversified Credit Securitize Fund (ACRED)?

The Apollo Diversified Credit Securitize Fund (ACRED) is a feeder fund designed to provide investors access to the Apollo Diversified Credit Fund (“Underlying Fund”). The core objective of the Underlying Fund is to generate a return through a combination of current income and capital appreciation, with a strong emphasis on consistent income generation. What sets ACRED apart is its commitment to low volatility and low correlation with the broader market trends, making it potentially attractive for investors seeking stability and diversification in their portfolios. Apollo, the seasoned asset manager behind the fund, leverages over 30 years of experience to pursue attractive returns across various risk profiles. They employ a strategy that combines proprietary origination, credit strategies, and a flexible approach tailored to meet the needs of borrowers. This comprehensive approach allows the fund to navigate diverse market conditions and capitalize on opportunities as they arise. ACRED also boasts several investor-friendly features, including a 0% performance fee, ensuring that investors retain a larger portion of their returns. Furthermore, the fund offers $0 redemptions and daily pricing transparency coupled with daily liquidity, providing investors with clear visibility into their investment and the ability to access their funds when needed. These characteristics make ACRED an appealing option for investors seeking a blend of income generation, capital appreciation, and liquidity within the credit market.

How Does ACRED Work?

ACRED operates as a feeder fund, which means it invests its assets entirely into the Apollo Diversified Credit Fund (the “Underlying Fund”). The Underlying Fund then executes a multi-faceted investment strategy across both private and public credit markets. This strategy is built upon five key pillars, each designed to contribute to the overall return objectives: Corporate Direct Lending, Asset-Backed Lending, Performing Credit, Dislocated Credit, and Structured Credit. The first pillar, Corporate Direct Lending, focuses on large-scale corporate originations and sponsor-backed issuers of first lien, senior secured, and unitranche loans. Apollo leverages its proprietary sourcing channels to identify and secure these opportunities. The second pillar, Asset-Backed Lending, is an agile deployment of capital into origination and proprietary sourcing channels across a broad mandate of asset-backed investments, with a focus on investments collateralized by tangible investments. The third pillar, Performing Credit, primarily pursues liquid, performing senior secured corporate credits to generate total return. The fund aims to capture returns from investments that are considered relatively stable and reliable. The fourth pillar, Dislocated Credit, strategically utilizes contingent capital to pursue “dislocated” credit opportunities. These are typically stressed, performing assets that experience sell-offs due to technical or non-fundamental reasons, presenting opportunities to acquire them at attractive valuations. Finally, the fifth pillar, Structured Credit, focuses on structured credit opportunities across diverse asset types, vintages, maturities, jurisdictions, and capital structure priorities. This includes investments in collateralized loan obligations (CLOs), residential mortgage-backed securities (RMBS), and commercial mortgage-backed securities (CMBS), among others. The Underlying Fund’s diversified approach across these five pillars allows it to adapt to changing market conditions and capitalize on a wide range of opportunities within the credit landscape. The emphasis on income generation, combined with the potential for capital appreciation, aims to deliver attractive risk-adjusted returns to investors.

ACRED Key Features and Technology

ACRED’s key features are intrinsically tied to the investment strategy and operational structure of the Underlying Fund, the Apollo Diversified Credit Fund. One of the most significant features is its experienced management team at Apollo, leveraging their 30+ years of experience to navigate the complexities of the credit markets. Apollo’s expertise extends to proprietary origination, sophisticated credit strategies, and a flexible approach to borrower needs, enabling them to identify and capitalize on unique investment opportunities. The diversification offered by the Underlying Fund’s multi-asset approach across both private and public credit markets is another crucial feature. By allocating capital across five key pillars, including Corporate Direct Lending, Asset-Backed Lending, Performing Credit, Dislocated Credit, and Structured Credit, the fund reduces its exposure to any single sector or market condition, enhancing its resilience and potential for consistent returns. The focus on generating current income is another differentiating feature. ACRED aims to provide investors with a steady stream of income, which can be particularly appealing in a low-yield environment. This emphasis on income is balanced with the potential for capital appreciation, creating a blend of return sources. Transparency and liquidity are also important features of ACRED. The fund offers daily pricing transparency, allowing investors to monitor their investment’s performance accurately. Furthermore, the daily liquidity provides investors with the flexibility to access their funds when needed, a feature not always available in alternative investment products. Finally, the absence of a performance fee is a notable benefit for investors, allowing them to retain a larger portion of the returns generated by the fund. This fee structure aligns the interests of the fund manager and investors, encouraging a focus on delivering consistent, long-term performance.

What is ACRED Used For?

ACRED is primarily used as an investment vehicle to gain exposure to a diversified portfolio of credit assets managed by a seasoned asset manager, Apollo. Its core purpose is to generate a return comprised of both current income and capital appreciation, with a strong emphasis on consistent income generation. Investors may utilize ACRED to diversify their portfolios, particularly by adding exposure to credit markets, which may have low correlation to traditional asset classes like stocks and bonds. This diversification can help to reduce overall portfolio volatility and potentially enhance risk-adjusted returns. ACRED can also be used by investors seeking a stable income stream. The Underlying Fund’s focus on generating current income makes it an attractive option for those looking to supplement their income, particularly in a low-interest-rate environment. Furthermore, ACRED can be used as a tool for accessing private credit markets, which are typically not accessible to individual investors. The Underlying Fund’s investments in Corporate Direct Lending and Asset-Backed Lending, for example, provide exposure to opportunities that are often only available to institutional investors. ACRED’s daily liquidity and pricing transparency also make it a convenient option for investors who value flexibility and control over their investments. The ability to redeem shares daily allows investors to adjust their positions as needed, and the daily pricing transparency provides clear visibility into the fund’s performance. Ultimately, ACRED serves as a vehicle for investors to access a diversified credit strategy managed by a seasoned asset manager, with the goal of generating income, capital appreciation, and diversification within their investment portfolios.

How Do You Buy ACRED?

Buying ACRED involves purchasing shares of the fund through a financial intermediary, such as a brokerage account or investment platform. The specific process may vary depending on the platform, but generally involves the following steps: First, you need to open an account with a brokerage firm or investment platform that offers access to ACRED. This typically involves providing personal information, such as your name, address, social security number, and financial details, and completing the necessary account opening paperwork. Once your account is open and funded, you can search for ACRED’s ticker symbol (ACRED) on the platform. This will bring up information about the fund, including its current share price, historical performance, and other relevant details. Before placing an order, it’s essential to review the fund’s prospectus and other offering documents to understand its investment strategy, risks, and fees. This will help you make an informed decision about whether ACRED is suitable for your investment goals. Once you’re ready to invest, you can place an order to buy shares of ACRED through your brokerage account or investment platform. You’ll typically need to specify the number of shares you want to purchase or the dollar amount you want to invest. ACRED shares are available on public exchanges such as the New York Stock Exchange (NYSE). Once your order is executed, the shares of ACRED will be credited to your account, and you’ll become a shareholder in the fund. It’s important to note that ACRED’s share price can fluctuate based on market conditions and the performance of the Underlying Fund’s investments. As such, there is no guarantee that you’ll be able to buy or sell shares at a specific price.

How Do You Store ACRED?

Since ACRED is not a cryptocurrency, it doesn’t require storage in a digital wallet like Bitcoin or Ethereum. Instead, your ACRED shares are held in your brokerage account or investment platform where you purchased them. These accounts are typically managed by regulated financial institutions that are responsible for safeguarding your assets. The process of storing ACRED shares is straightforward. Once you purchase the shares, they are automatically credited to your account and held in custody by the brokerage firm or investment platform. You don’t need to take any additional steps to store or secure your shares. The brokerage firm or investment platform will provide you with regular statements and reports detailing your holdings, transaction history, and account performance. You can access this information online or through physical mail, depending on your preferences. The security of your ACRED shares is primarily the responsibility of the brokerage firm or investment platform. These institutions employ various security measures to protect your assets, including encryption, two-factor authentication, and fraud monitoring. They are also typically insured by the Securities Investor Protection Corporation (SIPC), which protects investors against the loss of cash and securities in the event of a brokerage firm’s insolvency. While you don’t need to manage a private key or worry about losing your shares due to a forgotten password, it’s essential to choose a reputable and well-established brokerage firm or investment platform to ensure the safety of your assets. You should also take steps to protect your account by using strong passwords, enabling two-factor authentication, and monitoring your account activity regularly.

Future Outlook and Analysis for ACRED

The future outlook for ACRED is closely tied to the performance of the Underlying Fund, the Apollo Diversified Credit Fund, and the broader credit market environment. Several factors could influence ACRED’s performance in the coming years. First, the overall economic outlook will play a significant role. A strong and growing economy typically supports healthy credit markets, leading to lower default rates and higher asset values. Conversely, an economic slowdown or recession could negatively impact credit quality and asset prices, potentially affecting ACRED’s returns. Interest rate movements are another critical factor to watch. Rising interest rates can impact the value of fixed-income investments, including credit assets. However, the Underlying Fund’s flexible investment strategy and focus on both private and public credit markets could help to mitigate the impact of rising rates. The Underlying Fund’s ability to identify and capitalize on attractive investment opportunities within the five key pillars of its strategy—Corporate Direct Lending, Asset-Backed Lending, Performing Credit, Dislocated Credit, and Structured Credit—will also be crucial. Apollo’s experienced management team and proprietary sourcing channels could provide a competitive advantage in this regard. In addition, the increasing demand for alternative investments, such as private credit, could benefit ACRED. As investors seek to diversify their portfolios and generate higher returns in a low-yield environment, private credit investments may become more attractive. A potential risk to ACRED’s performance is increased competition in the credit markets. As more investors allocate capital to private credit, the competition for deals could intensify, potentially leading to lower returns. Regulatory changes could also impact ACRED. New regulations governing credit markets or alternative investments could affect the Underlying Fund’s ability to operate and generate returns. Overall, the future outlook for ACRED is cautiously optimistic. The Underlying Fund’s diversified strategy, experienced management team, and focus on income generation position it well to navigate changing market conditions. However, investors should be aware of the potential risks and monitor the economic environment, interest rate movements, and regulatory landscape closely.

References

* CoinGecko: [https://www.coingecko.com](https://www.coingecko.com)
* CoinDesk: [https://www.coindesk.com](https://www.coindesk.com)