Apollo Diversified Credit Fund: Investor Alert

Apollo Diversified Credit Fund: Investor Alert

Apollo Diversified Credit Fund Investor Alert featured by top securities fraud attorneys, The White Law Group

Securities Investigation: Apollo Diversified Credit Fund

The White Law Group is investigating potential securities claims involving broker-dealers that may have improperly recommended Apollo Diversified Credit Fund, formerly known as Griffin Institutional Access Credit Fund, to retail investors.

Apollo Diversified Credit Fund is a non-traded, closed-end management investment company structured as an interval fund. While these products are often marketed as providing income and diversification, they carry significant risks that may not be appropriate for many investors—particularly those seeking liquidity, capital preservation, or conservative income strategies.

Secondary Market Sales and Pricing Concerns

A major red flag for investors is the secondary market pricing of Apollo Diversified Credit Fund shares.

• Original offering price: $25.00 per share

• Secondary market transaction:

  • Shares reportedly sold through Central Trade & Transfer (CTT) auctions on December 1, 2024 for approximately $17.50 per share

This represents a 30%+ discount from the original offering price—before accounting for lost income, fees, or opportunity cost.

Secondary market transactions often reveal what investors already suspect:
the real-world liquidity value of non-traded funds can be far below what was promised at sale.

Investors may not be informed that selling early could result in steep losses or that secondary sales might be their only realistic exit option.

Overview of Apollo Diversified Credit Fund

Apollo Diversified Credit Fund (formerly Griffin Institutional Access Credit Fund) is a closed-end interval fund that pursued a multi-asset credit strategy. The fund rebranded after Apollo’s involvement, but many investors purchased shares before or during the transition, often relying on representations made by their financial advisors regarding income stability, diversification, and limited downside risk.

Like many alternative investment products, the fund was not traded on a national securities exchange, significantly limiting investor liquidity.

Risks of Non-Traded Interval Funds

Alternative investments such as Apollo Diversified Credit Fund carry risks that are often under-disclosed at the point of sale, including:

• Illiquidity: Shares are not publicly traded, and redemptions are limited and discretionary

• Valuation Risk: Net asset value (NAV) is determined internally and may not reflect true market value

• Credit Risk: Exposure to leveraged and distressed borrowers increases default risk

• Complexity: Interval funds are difficult for retail investors to fully understand

• High Fees: Up-front commissions and ongoing management fees can significantly reduce returns

These products are frequently sold to income-seeking investors despite being unsuitable for retirees or conservative portfolios.

Broker Due Diligence and Suitability Obligations

FINRA rules require brokerage firms and financial advisors to:

• Conduct reasonable due diligence before recommending alternative investments

• Ensure the investment is suitable based on the client’s age, net worth, liquidity needs, risk tolerance, and investment objectives

• Fully and fairly disclose material risks, including liquidity constraints and secondary market discounts

When brokers recommend complex, illiquid credit funds primarily because of high commissions, they may violate FINRA suitability and supervision standards.

FINRA Arbitration and Recovery Options

If Apollo Diversified Credit Fund was unsuitably recommended or risks were misrepresented, investors may be able to pursue recovery through FINRA arbitration.

FINRA arbitration is the primary dispute resolution forum for claims against brokerage firms and registered representatives and may allow investors to recover:

• Investment losses

• Lost opportunity costs

• Commissions and fees

• Interest and, in some cases, attorneys’ fees

FINRA Attorneys – The White Law Group

The White Law Group is investigating whether FINRA-registered brokerage firms may be liable for losses suffered by investors in Apollo Diversified Credit Fund (formerly Griffin Institutional Access Credit Fund).

Our firm represents investors nationwide in FINRA arbitration claims involving:

• Unsuitable investment recommendations

• Failure to disclose liquidity and valuation risks

• Misrepresentations regarding income and stability

• Sales of high-commission alternative investments

We prepare detailed Statements of Claim, engage in settlement negotiations, and aggressively advocate for investors at arbitration hearings.

Free Consultation with a Securities Attorney

If you are concerned about losses related to Apollo Diversified Credit Fund, you may have legal options.

 Call The White Law Group at 888-637-5510 for a free consultation with an experienced securities attorney.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.

For more information, visit whitesecuritieslaw.com.

Frequently Asked Questions (FAQs)

What is Apollo Diversified Credit Fund and how is it different from Griffin Institutional Access Credit Fund?

Apollo Diversified Credit Fund is the current name of the investment formerly known as Griffin Institutional Access Credit Fund. While the name and management branding changed, many investors purchased shares before or during the transition. A name change does not eliminate the original risks, liquidity limitations, or potential suitability issues associated with the investment at the time it was sold.

Why are Apollo Diversified Credit Fund shares selling for less on the secondary market?

Shares of Apollo Diversified Credit Fund were originally sold at $25 per share, but secondary market transactions—such as Central Trade & Transfer (CTT) auctions in December 2024—reportedly cleared at approximately $17.50 per share. Secondary market discounts often reflect limited liquidity, investor demand, credit risk, and the absence of a public trading market. Many investors are unaware of these risks until they attempt to sell.

Can investors recover losses in Apollo Diversified Credit Fund through FINRA arbitration?

Investors may be able to pursue recovery through FINRA arbitration if a brokerage firm or financial advisor made unsuitable recommendations, failed to disclose liquidity and valuation risks, or misrepresented the nature of the investment. FINRA arbitration allows investors to seek damages for losses, fees, and other harm caused by improper sales practices.