SCHEDULE: Apollo Group Discloses 19% Stake in Ares Preferred Stock

A group of Apollo entities, including Athene Annuity and Life Company, reported a 19% beneficial ownership of Ares Dynamic Credit Allocation Fund's Mandatory Redeemable Preferred Stock.

Summary

• A group of nine Apollo-affiliated entities, led by Athene Annuity and Life Company (AAIA), collectively reported 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 ownership is broken down by series: 360,000 shares of Series A (45.0% of Series A), 160,000 shares of Series B (13.3% of Series B), and 240,000 shares of Series C (12.0% of Series C).
• The reporting persons share both voting and dispositive power over these 760,000 shares, with no sole voting or dispositive power.
• The shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.
• The percentage of class is based on 800,000 shares of Series A, 1,200,000 shares of Series B, and 2,000,000 shares of Series C Mandatory Redeemable Preferred Stock outstanding as of June 30, 2025, as reported by the Issuer on September 4, 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, indicating strong institutional confidence and a significant, stable investment in Ares Dynamic Credit Allocation Fund's preferred stock by a major financial group, without suggesting any immediate control changes.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that the significant beneficial ownership by Apollo-affiliated entities in Ares Dynamic Credit Allocation Fund's preferred stock highlights the strategic interest of large asset managers and insurance companies in credit-focused funds. This type of institutional investment often signals confidence in the underlying asset class and the fund's management, providing stable capital for the fund's operations and investment strategies. It also reflects the interconnectedness of major financial institutions in the asset management landscape.

Comparison to Industry Standards

• A 19% stake in a specific class of securities, particularly preferred stock, by a group of related institutional investors like the Apollo entities, is a substantial position. This level of ownership is common for large institutional investors seeking yield and a degree of influence without necessarily aiming for outright control of the common equity.
• Compared to typical retail investor holdings, this represents a concentrated institutional position, often indicative of a long-term strategic allocation rather than short-term trading.

Related Party Transactions

• The filing details a complex organizational structure where multiple Apollo-affiliated entities, including Athene Annuity and Life Company, Apollo Insurance Solutions Group LP, and various Apollo Capital Management and Management Holdings entities, are reporting beneficial ownership as a group. This indicates a coordinated investment strategy among related parties under the broader Apollo umbrella.

Stakeholder Impact

• For existing preferred shareholders, the significant and stable ownership by a large institutional group like Apollo may provide a sense of security regarding the stability and liquidity of the preferred shares.
• For common shareholders, this filing primarily indicates a substantial institutional investment in the fund's capital structure, which can be seen as a vote of confidence in the fund's ability to manage its credit allocations, without directly impacting their voting power or control.

Key Dates

Recommendation

The filing is a routine disclosure of beneficial ownership by a group of institutional investors in preferred stock. It does not contain new financial performance data, strategic shifts, or events that would warrant a change in investment recommendation for common stock. The significant institutional holding in preferred stock suggests stability but does not provide a catalyst for a 'buy' or 'sell' recommendation based solely on this filing.

Keywords

Ares Dynamic Credit Allocation Fund, Apollo Management Holdings, Athene Annuity and Life Company, Mandatory Redeemable Preferred Stock, Schedule 13G, Beneficial Ownership, Institutional Ownership, Preferred Stock, Credit Allocation Fund, 04014F2*2, 04014F3*1, 04014F4*0