SCHEDULE 13G/A: Apollo Affiliates Maintain Significant Stake in CION Ares Diversified Credit Fund's Preferred Shares

A group of Apollo-affiliated entities, including Athene Annuity and Life Company, has reported a continued beneficial ownership of 14.8% in CION Ares Diversified Credit Fund's Mandatory Redeemable Preferred Shares as of December 31, 2024.

Summary

• This filing is an Amendment No. 6 to Schedule 13G, reporting beneficial ownership of Mandatory Redeemable Preferred Shares of CION Ares Diversified Credit Fund.
• The reporting group consists of nine Apollo-affiliated entities, with Athene Annuity and Life Company ("AAIA") directly holding the shares.
• The aggregate beneficial ownership by the reporting persons is 4,560,000 Mandatory Redeemable Preferred Shares.
• This ownership represents 14.8% of the class, calculated based on 30,800,000 shares outstanding as of June 30, 2024, as reported in the Issuer's Certified Shareholder Report.
• The reporting persons certify that the shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.
• Certain Apollo entities disclaim beneficial ownership of Common Stock held by AAIA.

Sentiment

Score: 6

Explanation: The document is a routine beneficial ownership disclosure, indicating a stable, significant institutional investment. It contains no negative surprises or positive operational news, hence a neutral-to-slightly-positive score reflecting the stability of the investment.

Positives

• The filing indicates a stable and significant institutional investment by a major financial group (Apollo) in CION Ares Diversified Credit Fund's preferred shares.
• The stated purpose of holding shares in the ordinary course of business suggests a passive, long-term investment, which can provide stability to the preferred share class.

Risks

• The reporting persons disclaim beneficial ownership of common stock, which is a standard legal disclaimer and not an operational risk for the issuer.

Future Outlook

This document is a historical ownership disclosure and does not contain forward-looking statements or guidance from the issuer or the reporting persons regarding the issuer's future performance.

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."
• "AISG, AISG GP, Apollo Life, Apollo Life GP, Capital Management, Capital Management GP, Management Holdings, Management Holdings GP, each disclaim beneficial ownership of all Common Stock held of record by AAIA, and the filing of this report shall not be construed as an admission that any such person or entity is the beneficial owner of any such securities for purposes of Section 13(d) or 13(g) of the Securities Exchange Act of 1934, as amended, or for any other purpose."

Industry Context

This filing reflects a significant institutional holding by a major financial services group (Apollo) in a diversified credit fund. Such holdings are common for large asset managers and insurance companies seeking yield and diversification through preferred equity instruments, indicating continued confidence in the fund's preferred shares as an investment vehicle.

Comparison to Industry Standards

• A 14.8% stake in a specific class of securities represents a substantial passive investment, typical for large institutional investors like Apollo's affiliates (e.g., Athene Annuity and Life Company) seeking exposure to credit markets.
• This level of ownership is below the 20% threshold that might trigger more stringent reporting requirements (e.g., Schedule 13D, indicating intent to influence control), aligning with the stated purpose of holding shares in the ordinary course of business.
• Comparable institutional holdings can be observed in other diversified credit funds or Business Development Companies (BDCs) where large asset managers or insurance companies maintain significant preferred or common equity stakes for income generation and portfolio diversification.

Stakeholder Impact

• Shareholders: The continued significant institutional ownership by Apollo affiliates may provide a degree of stability and confidence in the preferred shares.
• Management: The passive nature of the investment (as certified) suggests no immediate pressure or influence on management's control.

Key Dates

Recommendation

Keywords

CION Ares Diversified Credit Fund, Mandatory Redeemable Preferred Shares, Schedule 13G/A, Beneficial Ownership, Apollo Management, Athene Annuity, SEC Filing, Institutional Investment, Preferred Stock