SCHEDULE: Apollo Affiliates Disclose 19% Stake in Ares Preferred Stock

A group of Apollo-affiliated entities, led by Athene Annuity and Life Company, has disclosed a 19% beneficial ownership stake in the total outstanding Mandatory Redeemable Preferred Stock of Ares Dynamic Credit Allocation Fund, Inc.

Summary

• Athene Annuity and Life Company (AAIA) and eight other Apollo-affiliated entities collectively beneficially own 760,000 shares of Ares Dynamic Credit Allocation Fund, Inc.'s Mandatory Redeemable Preferred Stock.
• This ownership represents 19% of the total outstanding Mandatory Redeemable Preferred Stock.
• The stake is comprised of 360,000 shares of Series A Mandatory Preferred Stock (45.0% of Series A outstanding), 160,000 shares of Series B Mandatory Preferred Stock (13.3% of Series B outstanding), and 240,000 shares of Series C Mandatory Preferred Stock (12.0% of Series C outstanding).
• The reporting persons share both voting and dispositive power over these 760,000 shares.
• The shares were acquired and are held in the ordinary course of business, 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 and does not contain subjective language or forward-looking statements that would indicate a positive or negative sentiment.

Future Outlook

NA

Industry Context

This filing reflects a significant passive investment by a major financial services group, Apollo, through its various entities, in the preferred stock of a credit allocation fund. Such investments are common for large institutional investors seeking income and exposure to specific asset classes.

Stakeholder Impact

• Shareholders of Ares Dynamic Credit Allocation Fund's preferred stock will note a significant portion of their class is held by a single, large institutional group, potentially indicating stability in the shareholder base for these specific securities.
• The issuer, Ares Dynamic Credit Allocation Fund, Inc., has a major institutional investor in its preferred stock, which could be viewed positively for its capital structure.

Key Dates

Keywords

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