Apollo Global Management and Securitize, a company that focuses on tokenizing real-world assets, have formed a partnership to tokenize investment opportunities, starting with the launch of a new feeder fund called Apollo Diversified Credit Securitize Fund, said a news release Jan. 30.
ACRED will offer tokenized access to the fund, a diversified global credit strategy investing across corporate direct lending, asset-backed lending, and performing, dislocated and structured credit.
Apollo Diversified Credit Fund is a closed-end interval fund seeking both current income and capital appreciation, with low volatility and low correlation to the broader markets.
ACRED, which will initially be available on the Aptos, Avalanche, Ethereum, Ink, Polygon and Solana blockchain networks, includes Ethereum ecosystem support from Etherealize, and investment from Coinbase Asset Management and Kraken, among others.
An Apollo spokesperson said the fund is “available to accredited investors and institutional investors, so only accredited and up, not average retail investors.”
The launch of ACRED marks the first time that investors can access Apollo Diversified Credit Fund through an on-chain product, “simplifying the operational process in an all-digital format through Securitize, including native redemptions at a daily net asset value,” the release said.
Securitize also serves as ACRED's digital transfer agent and fund administrator.
Christine Moy, a partner leading digital assets, data and artificial intelligence strategy at Apollo, said in the release that "this tokenization not only provides an on-chain solution for Apollo Diversified Credit Fund, but also could pave the way for broader access to private markets through next-generation product innovation, greater secondary liquidity and efficiency over time. We believe ACRED is already proving attractive to both institutional and individual investors, and we're excited to work with these new digital asset ecosystems to build the future of investments."
Carlos Domingo, co-founder and CEO of Securitize, noted in the release, that the “next wave of demand for tokenized assets has emerged around fixed income, including private credit.”
Apollo has about $733 billion of assets under management.