Regulation FD Disclosure (Form 8-K)

as investors questioned the durability of recurring revenues and competitive advantages. These concerns moderated during the third quarter amid better-than-expected operating results and growing recognition that AI-driven disruption may unfold more gradually and affect software companies differently. At the same time, attention increasingly shifted toward the substantial capital required to build AI infrastructure, including data centers, power generation, and semiconductor manufacturing.

Software ETF Rebounded Sharply From Its April Low¹⁷

Against this backdrop, risk markets delivered mixed results during the third quarter of 2026. The S&P 500 Index gained 2.3%, and the Nasdaq Composite advanced 2.6%.¹⁸ Fixed income markets faced greater pressure from rising rates, with US high yield bonds declining 1.8% and investment grade bonds falling 3.8%.¹⁹ Leveraged loans outperformed, returning 2% during the quarter and 3.2% year-to-date,²⁰ benefiting from their floating-rate structure, strong investor demand, and limited net new issuance.

Underlying leveraged loan fundamentals remained generally constructive. Second-quarter revenue and EBITDA growth reached 10.8% and 6.8% year-over-year, respectively, the strongest pace in three years. Interest coverage improved for a seventh consecutive quarter to 3.25x, a three-year high as of the end of September. Default trends were similarly encouraging: the par-weighted leveraged loan default rate, including distressed exchanges, declined to 2.08% in September, its lowest level since January 2023 and below the high yield default rate of 2.68%. Meanwhile, combined defaults and liability management exercises totaled $9.6 billion during the quarter, down 48% from the previous quarter and the lowest quarterly volume since the fourth quarter of 2022. Defaults in private credit also remained relatively contained.²¹ According to KBRA, the direct lending default rate declined to 2.2% in September, rising to 4.0% when including loans that have stopped making interest payments.²¹

Beneath these positive trends, however, credit dispersion continued to widen, particularly between higher- and lower-rated borrowers. CCC-rated companies experienced a 3% year-over-year decline in EBITDA during the second quarter, with average leverage reaching 8.53x, compared with 4.50x for BB-rated borrowers.²² Spreads on the lowest-rated loans widened significantly through September, reflecting growing concerns about the ability of weaker borrowers to withstand elevated financing costs. These trends reinforce the importance of disciplined underwriting and credit selection.

THE OPPORTUNITY IN PRIVATE CREDIT

Direct lending activity began to recover during the third quarter following a pronounced slowdown in the first half of 2026. Transaction volumes increased 33% from the second quarter,²³ although they remained 35% below first-quarter levels, reflecting continued softness in buyout activity and competition from the broadly syndicated loan market. Despite the slower pace of activity, pricing and lender protections have become more attractive. New direct lending transactions are pricing around SOFR+475-500 basis points,²⁴ with the highest-quality borrowers clearing near the tighter end of that range. Investor sentiment toward business development companies (BDCs) has also stabilized, with a recovery in unsecured debt spreads¹⁶ suggesting reduced concerns about redemption pressures and forced asset sales.

For Apollo, this environment is creating opportunities to originate higher-quality loans with more attractive structures. Approximately 84% of our originations this year have been deals where Apollo acted as sole lender, lead lender, and/or agent, as we continue to source and structure bespoke risk with a focus on downside protection. Moderating capital inflows into wealth vehicles have improved negotiating power for those with ample dry powder, with average first-lien net leverage on Apollo's 2026 originations declining to 4.1x from 5.5x in 2025. We remain focused on larger, more established borrowers with diversified revenues, stronger cash flows, and broader access to capital-qualities that we expect will provide greater resilience in a higher-rate environment. We see attractive value stemming from infrastructure-related tailwinds as well as AI-resilient leisure themes, such as Apollo's landmark investment in the New York Yankees this quarter.

At the same time, growing dispersion across private credit is highlighting the importance of portfolio construction. Years of rapid industry growth led many managers to accumulate concentrated exposures to similar sectors, particularly software and technology-enabled services. AI-driven disruption and persistently higher interest rates have begun to expose vulnerabilities in these portfolios, reinforcing the importance of diversification, disciplined underwriting, and proactive portfolio management.

For ADS, this approach has translated into a more defensive portfolio. Software represented approximately 10.5% of our investments as of September 30, 2026, compared with roughly 20% for the broader non-traded BDC peer group.²⁵ Anticipating the disruptive potential of AI, Apollo proactively reduced software exposure across its credit platform, including approximately $750 million of private credit exposure during the second half of 2025, ahead of the broader market sell-off in early 2026.

Operating results across ADS's directly originated portfolio have also remained strong. Based on our latest portfolio review, underlying borrowers generated year-over-year revenue and EBITDA growth of 8.2% and 13.0%,²⁶ respectively. EBITDA growth was nearly twice the 6.8% reported for the broader leveraged loan market in the second quarter, highlighting the strength of our borrowers' earnings against an already constructive market backdrop.^{22, 24}

ADS Has Outperformed Public Fixed Income Markets Since Inception^1,3

ADS's performance reflects the benefits of this disciplined approach, particularly when compared with public fixed income markets. Since its inception in January 2022 through September 30, 2026, ADS Class I generated an 8.13% annualized net return,¹ compared with 6.33% for leveraged loans,^3,4 3.76% for high yield bonds,^3,5 and -0.2% for the Bloomberg US Corporate Index^3,6. ADS also outperformed these benchmarks during the first nine months of 2026, generating a 4.2% net total return.¹ We believe that these results highlight the potential for private credit to complement traditional fixed income allocations while delivering attractive long-term risk-adjusted returns.

ADS Newly Originated Deal Spreads vs New Issue Leveraged Loan Spreads by Year²⁷

WHY APOLLO FOR CREDIT?

SCALE & EXPERIENCE: Since Apollo's founding in 1990, Apollo has established a notable record of success in alternative investments, serving institutional and individual investors across the risk-return spectrum - in credit, equity, and real assets strategies. As a high-growth alternative asset manager, Apollo oversees $849 billion in its credit business with a broad coverage and experienced team that includes ~600 investment professionals.¹² The ongoing growth in private lending is largely consolidated in the hands of the largest platforms, and Apollo's scale allows it to lead and arrange transactions, acting as a full-service solution for borrowers and sponsors. Through an investment in ADS, individual investors have access to the same caliber of transactions and deals that Apollo's institutional investors receive, which we believe can potentially produce attractive risk-adjusted returns.

PURCHASE PRICE MATTERS: ADS focuses on downside protection¹⁰ through credit selection and portfolio construction with an emphasis on lending to large-cap, private US companies at the top of the capital structure. As of September 30, 2026, the weighted average EBITDA of ADS's directly originated debt investments was $307 million⁸ with an estimated weighted average LTV of 42%.⁸ ADS's portfolio is 99%⁹ first lien, senior secured debt as of the same date. Further, ADS's direct originations during the nine months ended September 30, 2026, generated an average spread of 484 basis points, 173 basis points higher than new issue US leveraged loan market spreads.¹³ Further, we believe ADS's balance sheet is positioned for offense, with a net leverage ratio of 0.85x as of September 30, 2026.

SELECTIVITY & JUDGEMENT: Apollo's long-term approach to investing, which focuses on selectivity and underwriting discipline, has translated into very low default rates in the platform's broader portfolio. From 2009 to the first half of 2026, Apollo's Global Corporate Credit business experienced a cumulative weighted average default loss of 0.2%, compared to the 1.3% average within the broader market.¹⁴

ALIGNMENT: Since Apollo's merger with retirement services business Athene, Apollo is often among the largest investors in its own funds. ADS invests alongside a number of Apollo's direct lending funds where Apollo/Athene also have exposure, and these investments make up more than 88% of ADS's portfolio, showcasing Apollo's willingness to invest alongside its third-party investors.¹¹

KEY TRANSACTIONS IN 3Q26¹⁵

OUTLOOK

Looking ahead, we believe the combination of improving deal activity, more attractive financing terms, and growing credit dispersion will continue to create compelling opportunities in private credit. A recovery in M&A and refinancing activity should support a broader pipeline of investments, while persistently higher interest rates continue to provide attractive income opportunities for floating-rate lenders.

For Apollo, our scale, deep origination capabilities and ability to invest across private markets position us to capitalize on these trends by sourcing and structuring investments that offer excess spread relative to broadly syndicated loans. We remain focused on larger, more established businesses with durable cash flows, strong asset coverage and resilient competitive positions. With substantial capital available to deploy, we believe ADS can continue generating attractive risk-adjusted returns while maintaining a disciplined approach to underwriting and downside protection.

END NOTES

Data as of September 30, 2026 unless otherwise indicated. All per share and return figures are presented for Class I Common Shares, unless otherwise indicated. Performance varies by share class. Reflects Apollo's views and beliefs as of the date of this material and is subject to change without notice. Past performance is not indicative of future results. There can be no assurance that investment strategies or objectives described herein will be achieved and there can be no assurances that any of the trends described herein will continue or will not reverse. The value of any investment could decline and/or become worthless. Diversification does not ensure profit or protect against loss.