SCHEDULE: Apollo Affiliates Boost Stake in Ares Dynamic Credit Fund

Apollo-affiliated entities, including Athene Annuity and Life Company, have increased their beneficial ownership in Ares Dynamic Credit Allocation Fund, Inc. to 19% of its Mandatory Redeemable Preferred Stock.

Summary

• Nine Apollo-affiliated entities, including Athene Annuity and Life Company, are collectively reporting beneficial ownership of 760,000 shares of Ares Dynamic Credit Allocation Fund, Inc.'s Mandatory Redeemable Preferred Stock.
• This aggregate ownership represents 19% of the total outstanding Mandatory Redeemable Preferred Stock.
• The 760,000 shares are comprised of 360,000 shares of Series A Mandatory Preferred Stock, 160,000 shares of Series B Mandatory Preferred Stock, and 240,000 shares of Series C Mandatory Preferred Stock.
• The ownership percentages for individual series are 45.0% of Series A, 13.3% of Series B, and 12.0% of Series C Mandatory Preferred Stock.
• All reporting persons share both voting and dispositive power over these 760,000 shares, with no sole voting or dispositive power reported.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership, which is neutral in sentiment. It indicates a significant institutional stake but does not provide performance or forward-looking statements to assess positive or negative sentiment.

Future Outlook

NA

Industry Context

This filing reflects a significant institutional investment by Apollo-affiliated entities, including an insurance company (Athene Annuity and Life Company), in a credit allocation fund. Such large stakes in preferred stock are common for institutional investors seeking income and specific risk profiles within the credit market, aligning with broader trends of alternative asset managers expanding their influence across various financial products.

Stakeholder Impact

• Shareholders: The significant ownership by Apollo-affiliated entities could imply increased institutional influence over certain aspects of the fund, particularly concerning the preferred stock terms and any future corporate actions affecting these securities.
• Creditors: The presence of a large institutional holder of preferred stock may influence the fund's capital structure and perceived stability, which could be relevant to creditors.

Key Dates

Keywords

Apollo, Athene Annuity and Life Company, Ares Dynamic Credit Allocation Fund, Mandatory Redeemable Preferred Stock, Beneficial Ownership, Institutional Investment, SEC Filing, Schedule 13G