By George Glover

Apollo Global Management is in talks to sell one of its publicly-listed business-development companies (BDCs), according to a report, as investors fret about the private-credit market.

Apollo has been holding talks to sell MidCap Financial Investment Corp., which it values at roughly $3 billion, The Wall Street Journal reported, citing people familiar with the matter. The discussions are ongoing and there is no guarantee they will result in a deal, the people said.

Apollo didn't immediately respond to a request for comment from Barron's.

Apollo stock slipped 0.8% to $132.19 ahead of the opening bell, having closed 4.2% higher on Friday. MFIC climbed 0.3% to $11.71. Futures tracking the S&P 500 were 0.1% lower after President Donald Trump called Iran's response to a U.S. peace proposal " totally unacceptable."

BDCs like MFIC make secured and high-rate loans to smaller private companies. Defaults for the fund jumped to 5.3% in the first quarter from 3.9% in December, according to the Journal.

Investors have been ditching private credit funds amid fears that they have made batches of bad loans to software companies that could struggle due to the rapid rise of artificial intelligence coding tools.

Apollo CEO Marc Rowan defended the embattled industry on an earnings call last week, telling investors not to heed negative headlines about the private-credit market.

Ares Capital, the largest publicly traded BDC, pointed 0.3% lower, while Blue Owl Capital was also down 0.3%.

Write to George Glover at george.glover@dowjones.com

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May 11, 2026 05:46 ET (09:46 GMT)

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