SCHEDULE: Apollo Entities Disclose 10.6% Stake in CION Ares Credit Fund

A group of Apollo-affiliated entities has disclosed a 10.6% beneficial ownership stake in CION Ares Diversified Credit Fund's Mandatory Redeemable Preferred Shares.

Summary

• A group of nine Apollo-affiliated entities, including Athene Annuity and Life Company, collectively reported beneficial ownership of 4,560,000 Mandatory Redeemable Preferred Shares (MRPS) of CION Ares Diversified Credit Fund.
• This ownership represents 10.6% of the total outstanding MRPS, based on 42,800,000 shares outstanding as of June 30, 2025.
• The shares are held in the ordinary course of business and were not acquired with the purpose or effect of changing or influencing the control of the issuer.
• Athene Annuity and Life Company (AAIA) directly holds the MRPS, with other Apollo entities acting as investment advisers, general partners, and managing members in the ownership structure.
• The filing is an Amendment No. 9 to a Schedule 13G, indicating ongoing disclosure of this ownership position.

Sentiment

Score: 5

Explanation: The filing is a routine disclosure of beneficial ownership, indicating a neutral sentiment. It provides factual information without expressing positive or negative outlooks on the issuer's performance.

Positives

• The disclosure of a significant, stable ownership stake by a major financial group like Apollo can signal confidence in the CION Ares Diversified Credit Fund's preferred shares.
• The explicit statement that the shares are held in the ordinary course of business and not for control purposes suggests a passive, long-term investment intent.

Negatives

• The filing does not contain any negative financial or operational information about the issuer, as it is solely a beneficial ownership disclosure.

Risks

• The reporting persons disclaim beneficial ownership of all Common Stock held of record by AAIA, and the filing should not be construed as an admission of beneficial ownership for other securities.
• The nature of Mandatory Redeemable Preferred Shares (MRPS) carries specific redemption risks and terms that are not detailed in this filing but are inherent to the security type.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding the issuer's future performance or the reporting persons' investment strategy beyond the intent to hold shares in the ordinary course of business.

Management Comments

• William Kuesel, Vice President of Apollo Management Holdings GP, LLC, certified that 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.

Industry Context

This filing reflects a significant institutional investment by a major alternative asset manager, Apollo Global Management, through its various affiliated entities, in a diversified credit fund. Such investments are common for large asset managers and insurance companies like Athene, seeking yield and diversification within their portfolios.

Related Party Transactions

• Athene Annuity and Life Company (AAIA) holds the Mandatory Redeemable Preferred Shares of the Issuer. Apollo Insurance Solutions Group LP (AISG) is the investment adviser of AAIA. AISG GP Ltd. (AISG GP) is the general partner of AISG. Apollo Life Asset, L.P. (Apollo Life) is the general partner of AISG GP, and Apollo Life Asset GP, LLC (Apollo Life GP) is the general partner of Apollo Life. Apollo Capital Management, L.P. (Capital Management) is the sole member of Apollo Life GP. The general partner of Capital Management is Apollo Capital Management GP, LLC (Capital Management GP). Apollo Management Holdings, L.P. (Management Holdings) is the sole member and manager of Capital Management GP, and Apollo Management Holdings GP, LLC (Management Holdings GP) is the general partner of Management Holdings. This complex structure indicates a series of related entities within the Apollo ecosystem collectively reporting beneficial ownership.

Stakeholder Impact

• Shareholders of CION Ares Diversified Credit Fund will note the continued significant institutional ownership by Apollo-affiliated entities, which may be viewed as a sign of stability for the preferred shares.
• The disclosure clarifies the intricate ownership structure within the Apollo group, providing transparency to investors and regulators.

Key Dates

Keywords

CION Ares Diversified Credit Fund, Apollo Management, Athene Annuity and Life Company, Schedule 13G, Beneficial Ownership, Mandatory Redeemable Preferred Shares, MRPS, Institutional Ownership, SEC Filing, Credit Fund