Apollo Diversified Credit Fund NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-23159

(Investment Company Act file number)

Apollo Diversified Credit Fund

(Exact name of registrant as specified in charter)

9 West 57th Street, New York

New York 10019

(Address of principal executive offices)

212-515-3200

(Registrant's telephone number, including area code)

ALPS Fund Services, Inc.

1290 Broadway, Suite 1000

Denver, CO 80203

(Name and address of agent for service)

Copy to:

Ryan P. Brizek

Simpson Thacher & Bartlett LLP

900 G Street, N.W.
Washington, D.C. 20001

Date of fiscal year end: December 31

Date of reporting period: January 1 - June 30, 2023

Item 1. Reports to Stockholders.

(a)

APOLLO DIVERSIFIED CREDIT FUND

Table of Contents

Shareholder Letter (Unaudited)	2
Portfolio Update (Unaudited)	15
Consolidated Schedule of Investments	17
Consolidated Statement of Assets and Liabilities	28
Consolidated Statement of Operations	30
Consolidated Statements of Changes in Net Assets	31
Consolidated Statement of Cash Flows	33
Consolidated Financial Highlights	35
Notes to Consolidated Financial Statements	47
Dividend Reinvestment Policy	65
Additional Information	66
Trustees and Officers	67
Service Providers	69
Privacy Notice	70

APOLLO DIVERSIFIED CREDIT FUND

Shareholder Letter (Unaudited)

Dear Valued Shareholders,

We are pleased to present an update for Apollo Diversified Credit Fund (the “Fund”) covering the first half of 2023. We will also share our perspective regarding the near-term investment environment and potential opportunities for the Fund.

Market Overview

At the mid-point of the year, the markets have generally demonstrated unwavering strength in our view, as they have digested and navigated tightening credit conditions. Aside from a brief period of instability triggered by bank failures in March, markets have generally experienced upward momentum. Credit markets rose alongside equities despite persistent concerns about a pending economic slowdown later in the year and into 2024.

The US leveraged loan index outperformed its fixed coupon counterparts across high yield and investment grade, gaining approximately 6.48% year-to-date as of June 30, 2023, the highest reading for any comparable period since 2009.¹

The US unemployment rate fell to 3.6% in June, down from 3.7% in May, as US employers added 209,000 workers. Although June’s additions were the smallest since December 2020, we believe economic activity has not slowed as much as the Fed has hoped.²

Default activity was elevated in June with the par weighted US high-yield bond and leveraged loan default rates increasing to 2.7% and 2.9%, respectively; however, both remain below their respective long-term averages of 3.2% and 3.1%.^{3, 4}

Outlook

In our view, inflation has been stickier than expected and continues to hover around an annualized 5% (largely attributable to resilient labor markets and a recovering housing market). We expect the Fed will continue to keep rates elevated in an attempt to meet their 2% annualized inflation target. In our opinion, the cost of capital will stay higher for longer than the market is currently pricing. It is our view that, in this environment, portfolio positioning may benefit from exposure to asset classes that have historically shown lower levels of volatility relative to public equity and lower sensitivity to inflation. Investors who can act as providers of capital—especially through debt financing—may benefit from opportunities generated by an environment where regional banks remain under pressure and primary high-yield issuance continues to face headwinds.¹⁴

Fund Snapshot

Structure	1940 Act Closed-End Interval Fund
Inception Date	April 3, 2017
Apollo Inception Date⁵	May 2, 2022
Management Fee	1.5% on NAV
Pricing	Daily NAV
Subscription Frequency	Daily
Repurchase Frequency	Quarterly (5% of Fund shares outstanding)
Distribution Frequency	Quarterly
Tax Reporting	1099-DIV

Fund Summary Stats

Managed Assets⁶	$844.1 million
Leverage⁷	22.3%
Portfolio Companies	137
Average Duration (Years)⁸	1.2
Q2 2023 Annualized Distribution Rate (Class I Share)⁹	9.3%
Last Twelve Months’ Distribution Rate (Class I Share)⁹	8.4%
Portfolio Weighted Average Yield¹⁰	9.9%
Floating Rate Exposure¹¹	69.9%
Senior Secured	90.3%
North America/Europe/Other^{12, 13}	78% / 22% / 2%

Past performance is not indicative of future results. Holdings and allocations are subject to change without notice. Diversification does not eliminate the risk of experiencing investment losses. Source: Apollo Analysts. The views expressed here are Apollo’s own, unless otherwise noted. Holdings and allocations, unless disclosed otherwise, are based on Managed Assets. The Fund is actively managed and its characteristics will vary. Active portfolio management could result in underperformance. For discussion purposes only. The expected allocations are subject to a variety of factors, including Apollo’s analysis of investment opportunities, and is subject to change at any time without notice. There is no guarantee these expected allocations will occur.

APOLLO DIVERSIFIED CREDIT FUND

Fund Performance⁵

For the month ended June 30, 2023, Apollo Diversified Credit Fund’s (the “Fund”) Class I shares (NASDAQ: CRDIX) returned 2.16%, bringing quarter-to-date, year-to-date, and one-year performance as of June 30, 2023, to 3.29%, 7.87%, and 10.97%, respectively. The Fund’s public credit strategies continued to perform amidst a volatile backdrop as spreads and yield compressed, contributing 214 basis points (bps) to performance in June, bringing its quarter-to-date and year-to-date contribution to 281 bps and 706 bps, respectively, as of June 30, 2023. The increase in the earnings power of our directly originated loans drove performance in our private credit strategy, contributing 58 bps to performance in June, bringing private credit’s quarter-to-date and year-to-date contribution to 151 bps and 299 bps, respectively, as of June 30, 2023.

The Fund’s Class I shares produced an annualized distribution rate of 9.3% as of June 30, 2023, representing an increase of 22 bps compared to the Q1 2023 annualized distribution rate.

Class I Performance as of June 30, 2023⁵

Apollo Diversified Credit Fund is a closed-end interval fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% and no more than 25% of the Fund’s shares outstanding at net asset value. The Fund is only suitable for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. There is no secondary market for the Fund’s shares and none is expected to develop.

Past performance is not indicative of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Investing involves risk, including loss of principal. Performance includes reinvestment of distributions and reflects management fees and other expenses. Fund returns greater than one year are annualized. Fund returns would have been lower had expenses not been waived during the period. The Fund return does not reflect the deduction of all fees, including any applicable Fund share class sales load, third-party brokerage commissions or third-party investment advisory fees paid by investors to a financial intermediary for such services. If the deduction of such fees was reflected, the performance would be lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. The most recent performance is available at www.apollo.com or by calling 888.926.2688. The views expressed here are Apollo’s own, unless otherwise noted.

APOLLO DIVERSIFIED CREDIT FUND

Private Credit

As of June 30, 2023

Private Credit Overview

In the second quarter of 2023, following the US regional bank fallout, large scale private credit providers continued to remain well positioned to capitalize on the opportunity created by retrenchment in bank lending and the capital needs of both sponsors and borrowers.

Although mergers and acquisitions (M&A) volume was relatively stagnant during the first half of 2023, the advantages of private credit were highlighted in the transactions that were announced. Borrowers, faced with dislocation and increased uncertainty in the syndicated markets, opted for the relative immediacy and certainty of execution provided by direct lenders.

Leveraged Commentary and Data estimates that the volume of M&A financed via directly originated loans totaled $42.6 billion in the first half of 2023, which exceeded both syndicated loans and high-yield bonds during the same period.¹⁵ Additionally, data for the second quarter of 2023 showed that, based on issuer count, private credit remained the financing of choice of private equity sponsors for leveraged buyouts (LBO) with 38 out of 45 deals financed by private credit. Additionally, private credit outpaced syndicated loans for non-LBOs as well, accounting for 60% of deals in both the second quarter and first half of 2023.¹⁵

As credit conditions continue to tighten amidst macroeconomic uncertainty and potentially increased regulation for large banks, we believe that well capitalized, scaled solution providers like Apollo are favorably positioned to continue to be a conduit for investors to access credit origination and to provide solutions to high-quality borrowers with more robust lender protection and shallower detachment points.

Private Credit Allocation

APOLLO DIVERSIFIED CREDIT FUND

Large Scale Origination

Although the pressures in the banking sector in the first half 2023 have accelerated the trend of banks pulling back from lending, large businesses requiring capital, in our opinion, will continue to access funding via direct lending. We continue to focus on sourcing large cap direct lending opportunities and investing at the top-of-the capital structure in established businesses with business models that, in our view, are more resilient to macroeconomic uncertainty and volatility.

In the second quarter of 2023, the Fund added approximately $64 million of new originations to the portfolio, bringing the Fund’s large scale origination exposure to approximately 38% as of June 30, 2023. During the month of June, Apollo led a $2 billion private debt deal to support expansion of a vertically integrated silicon carbide material manufacturer. The financing was structured as a seven-year secured note issued at $96 that carry a coupon of 9.875% with call protection and a comprehensive collateral package that includes first lien on all existing facilities and equipment, cash, and intellectual capital (IP).¹⁶

Characteristics

The Fund’s long-term allocation target for Large Scale Origination is 30–50%.

Other Private Credit Strategies

Within this strategy, the Fund focuses on the agile deployment of capital into origination and propriety sourcing channels across sectors and credit asset classes. This may include opportunities within asset classes covered by Apollo, including, but not limited to, asset-backed lending and credit secondaries.

In June, the Fund added investment grade rated tranches of a collateralized loan obligation (CLO) at a weighted average spread of SOFR + 320 bps and a sub 50% loan-to-value (LTV). The collateral consists of 33 loans on 76 multifamily properties. We believe this investment delivers a differentiated risk/return profile compared to private corporate credit assets, specifically low correlation of credit performance versus traditional corporate credit, while exhibiting downside protection from interest rate and inflation risks.

Range

The Fund's long-term allocation target for Other Private Credit Strategies is 5-20%.

APOLLO DIVERSIFIED CREDIT FUND

Public Credit

As of June 30, 2023

Public Credit Overview

Leveraged loans gained 2.3% in June, driven by carry and credit spread compression of 56 bps (index spread at +552 bps as of June 2023).¹

High-yield bonds gained 1.6% in June, the largest return since January 2023. High-yield bond yields and spreads decreased 27 bps and 65 bps in June to 871 bps and 434 bps, respectively.³

Leveraged loan issuance slowed during Q2 2023, as primary activity was dominated by refinancings, amend-to-extend deals and add-ons. New M&A transactions, including buyouts, accounted for just 11.5% of all institutional loan activity in the first half of 2023. Even including M&A financed via add-on loans, which are often syndicated to existing investors, total M&A volume stood at just $25.6 billion for the first six months of the year, the lowest first- half reading since 2009.¹ Year-to-date institutional loan volume totaled $136.8 billion, which is down almost 24% from the same period last year.³

High-yield bond issuance volume totaled $95.6 billion year-to-date, compared to $71.0 billion for the same period last year.³ Relative to last year’s 14-year low for issuances, 2023 marks a revival; however, we do not see this as a “back to normal trendline” as most of the activity is centered around refinancing and carried relatively short final maturities and lockout periods.¹⁵

Public Credit Allocation

Levered Performing Credit

The Fund’s levered performing credit strategy primarily pursues liquid, performing senior secured corporate credits to generate total return.

In June, the Fund selectively increased exposure in this strategy by approximately 3%, allocating to high-quality names that we believe provide enhanced yield and total return potential. The Fund’s exposure within this strategy is predominately focused on senior secured positions across industries with resilient business models that we believe will continue to generate strong cash flow across various economic environments.

Characteristics

The Fund’s long-term allocation target for Leveraged Performing Credit is 25-35%.

APOLLO DIVERSIFIED CREDIT FUND

Dislocated Credit

The Fund’s dislocated credit strategy seeks to use contingent capital to tactically pursue “dislocated” credit opportunities (e.g., stressed, performing assets across the credit spectrum that sell-off due to technical and/or non-fundamental reasons) in between traditional, passive investment mandates and “distressed-for-control” investment mandates.

As of June 30, the Fund had selected exposure to sixteen issuers with a weighted average yield of approximately 11% and a weighted average price of approximately $86. In our view, the Fund’s dislocated credit strategy is potentially positioned for stable cash flow yield and upside price convexity.

Characteristics

The Fund's long-term allocation target for Dislocated Credit is 0-30%.

Structured Credit

The Fund’s structured credit strategy seeks out high-quality structured credit opportunities of various asset types, vintages, maturities, jurisdictions, and capital structure priorities, including debt and equity tranches of CLOs, commercial and residential mortgage-backed securities, consumer and commercial asset-backed securities, whole loans, and regulatory capital relief transactions.

Characteristics

The Fund’s long-term allocation target for Structured Credit is 10-30%.

APOLLO DIVERSIFIED CREDIT FUND

Portfolio Detail

As of June 30, 2023

Strategy Breakdown^{5, 13}

Attribution by Strategy

	June (bps)	YTD (bps)	Q2 / Last 3 Mos	7/1/22- 6/30/23 (bps)	Apollo Inception (5/2/22 - 6/30/23)⁵ (bps)
Private Credit	58	299	151	372	294
Large Scale Origination	55	284	147	396	–
Other Private Credit Strategies	3	15	4	-24	–
Public Credit	214	706	281	1,052	140
Levered Performing Credit	166	488	185	806	–
Dislocated Credit	48	195	92	195	–
Structured Credit	0	23	4	51	–
Currency Hedge	-30	-22	-10	-33	-10
Residual18	-10	-98	-44	-145	-133
Fees & Expenses	-16	-98	-49	-149	-135
Total (Net)	216	787	329	1,097	156

Top 10 Holdings as Percentage of Portfolio¹⁹

Issuer	Industry²⁰	Percent of Allocation
Hyperion Refinance Sarl/ Howden	Insurance	3.3%
Avalara, Inc.	Software	2.2%
Life Time, Inc.	Hotels, Restaurants & Leisure	2.0%
GBT Group Services B.V.	Consumer Finance	1.8%
Zendesk, Inc.	Software	1.8%
Commscope, Inc.	Communications Equipment	1.8%
CSC Holdings, LLC	Media	1.8%
Advarra Holdings, Inc.	Health Care Providers & Services	1.7%
Wolfspeed, Inc.	Semiconductors & Semiconductor Equipment	1.6%
Trident TPI Holdings, Inc.	Financial Services	1.6%

Past performance is not indicative of future results. Holdings and allocations are subject to change without notice and may not be representative of current or future allocations. Diversification does not eliminate the risk of experiencing investment losses. Source: Apollo Analysts. Holdings and allocations, unless disclosed otherwise, are based on Managed Assets. The Fund is actively managed and its characteristics will vary. Active portfolio management could result in underperformance. For discussion purposes only. The Fund pursues its investment objective through a “multi-asset” approach centered around five key strategy pillars, as described above: (1) levered performing credit, (2) dislocated credit, (3) large scale origination, (4) structured credit and (5) other private credit strategies. “Attribution by Strategy” is intended to show characters of the portfolio and provide an estimate as to which strategy pillars within the Fund contributed (positively or negatively) to the Fund’s overall performance during the period represented. Such attribution analysis should not be relied upon for investment decisions. Strategy and asset classification prior to Apollo Inception (May 2, 2022) was generated by the previous management team of the Fund’s investment adviser and as such Apollo Inception to Date attribution is only summarized for Private Credit, Public Credit, Currency Hedge, Residual, and Fees & Expenses. Total (Net) performance reflects the Fund’s Class I share and includes reinvestment of distributions and reflects management fees and other expenses charged during the period. Total (Net) performance of Fund’s Class I shares would have been lower had fees not been waived during the period. The Fund’s share classes also incur additional expenses not deducted herein, such as sales load, third-party brokerage commissions, third-party investment advisory fees paid by investors to a financial intermediary for brokerage services, or the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

APOLLO DIVERSIFIED CREDIT FUND

Top 5 Industry Allocations as Percentage of Portfolio²⁰

Correlation Summary²¹

As of June 30, 2023	Correlation to Fund: Last 3 Months	Correlation to Fund: Since Apollo Inception (5/2/22)⁵
Bloomberg US Aggregate Bond Index	0.66	0.47
Bloomberg Municipal Bond Index	0.58	0.51
Bloomberg US Corporate Bond Index	0.68	0.55
Morningstar LSTA US Leveraged Loan Index	0.55	0.75
ICE BofA US High Yield Index	0.94	0.91

Past performance is not indicative of future results. Holdings and allocations are subject to change without notice. Diversification does not eliminate the risk of experiencing investment losses. Source: Apollo Analysts. Holdings and allocations, unless disclosed otherwise, are based on Managed Assets. The Fund is actively managed and its characteristics will vary. Active portfolio management could result in underperformance.

Fund Sub-Adviser

Apollo Diversified Credit Fund is sub-advised by Apollo Credit Management, LLC. Apollo Credit Management, LLC is an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”).

Apollo Global Management, Inc. and its consolidated subsidiaries, including the Fund’s investment adviser, has built one of the world’s largest alternative credit platforms, managing $450 billion in institutional and private assets.²² We draw on 30+ years of experience, seeking to provide excess returns across the risk spectrum through our proprietary origination, an extensive credit toolkit, and a flexible capital base that can respond to the changing needs of borrowers. We offer solutions designed to align with investors’ needs for return — at what we believe to be the appropriate level of risk and liquidity. Apollo Diversified Credit Fund builds on Apollo’s global credit platform, our differentiated sourcing engine, and our status as a preferred lending partner.

$450B

in assets under management

300+

dedicated credit investment professionals

The views expressed here are Apollo’s own, unless otherwise noted.

APOLLO DIVERSIFIED CREDIT FUND

Glossary

Annualized Return: Calculated by annualizing cumulative return (i.e., adjusting it for a period of one year). Annualized return includes capital appreciation and assumes a reinvestment of dividends and distributions.

Attribution: An assessment of the performance of a portfolio or its investments.

Asset-backed Securities (ABSs): Financial securities backed by income-generating assets.

Basis Point (bps): A unit of measure used to describe the percentage change. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.

Bloomberg Municipal Bond Index: Measures the performance of US investment grade general obligation and revenue bonds with maturities from one to 30 years.

Bloomberg US Aggregate Bond Index: Measures the performance of the US investment grade bond market.

Bloomberg US Corporate Bond Index: Measures the performance of the investment grade, fixed-rate, taxable corporate bond market. It includes US dollar-denominated securities issued by US and non-US industrial, utility and financial firms.

Bond: A debt instrument, also considered a loan, that an investor makes to a corporation, government, federal agency or other organization (known as an issuer) in which the issuer typically agrees to pay the owner the amount of the face value of the bond on a future date, and to pay interest at a specified rate at regular intervals.

Bond Rating: A method of evaluating the quality and safety of a bond. This rating is based on an examination of the issuer’s financial strength and the likelihood that it will be able to meet scheduled repayments. Ratings range from AAA (best) to D (worst). Bonds receiving a rating of BB or below are not considered investment grade because of the relative potential for issuer default.

Capital Relief Transactions: A transaction that seeks to provide credit protection on a portfolio of loans.

Collateralized Loan Obligation (CLO): A structured credit security backed by a pool of bank loans, structured so there are several classes of bondholders with varying maturities, called tranches. Debt and equity securities of CLOs are sold in tranches where each CLO tranche has a different priority on distributions, unique risk exposures, and yield expectations based on the tranche’s place in the capital structure. Distributions begin with the senior debt tranches (CLO debt) and flow down to the equity tranches (CLO equity).

Cumulative Return: The compound return of an investment. It includes capital appreciation and assumes a reinvestment of dividends and distributions.

Dry Powder: Refers to cash reserves for purchasing assets or making acquisitions.

ICE BofA US High Yield Index: Tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market.

J.P. Morgan Domestic High Yield Index: Designed to mirror the investable universe of the US dollar domestic high-yield corporate debt market, including issues of US and Canadian domiciled issuers.

J.P. Morgan Leveraged Loan Index: Designed to mirror the investable universe of US Dollar-denominated institutional leveraged loans, including US and international borrowers.

Leveraged Buyout (LBO): Purchase of a controlling share in a company using outside capital.

Loan-to-Value (LTV) Ratio: An assessment of lending risk that financial institutions and other lenders examine before lending to a company.

Morningstar LSTA US Leveraged Loan Index: Designed to deliver comprehensive coverage of the US leveraged loan market using PitchBook LCD data to monitor the performance, activity, and key characteristics of the market.

Mortgage-backed Securities: Investment products that are backed by mortgages on commercial or residential properties.

Net Asset Value (NAV): Represents a fund’s per-share price. NAV is calculated by dividing a fund’s total net assets by its number of shares outstanding.

Whole Loan: A single loan issued to a borrower.

APOLLO DIVERSIFIED CREDIT FUND

Risk Disclosures and Other Important Information (Unaudited)

This material is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, charges and expenses of Apollo Diversified Credit Fund (the “Fund”). This information and other important details about the Fund are contained in the prospectus, which can be obtained by visiting www.apollo.com. Please read the prospectus carefully before investing.

Past performance is not indicative of future results. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Investing involves risk, including loss of principal. Performance includes reinvestment of distributions and reflects management fees and other expenses. Fund returns would have been lower had expenses not been waived during the period. The Fund return does not reflect the deduction of all fees, including any applicable Fund share class sales load, third-party brokerage commissions or third-party investment advisory fees paid by investors to a financial intermediary for brokerage services. If the deduction of such fees was reflected, the performance would be lower. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Adviser to allocate effectively the assets of the Fund among the various securities and investments in which the Fund invests. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns. Current performance may be lower or higher than the performance quoted. The most recent performance is available at www.apollo.com or by calling 888.926.2688.

The Fund is a closed-end interval fund, the shares have no history of public trading, nor is it intended that the shares will be listed on a public exchange at this time. No secondary market is expected to develop for the Fund’s shares. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% and no more than 25% of the Fund’s shares outstanding at net asset value. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity. The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. Investing in the Fund is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment. There is no guarantee that the investment strategies will work under all market conditions.

The Adviser and the Fund have entered into an expense limitation and reimbursement agreement with respect to Class F shares (the “Class F Expense Limitation Agreement”) and a separate agreement with respect to all other classes of shares (the “Multi-Class Expense Limitation Agreement” and together with the Class F Expense Limitation Agreement, the “Expense Limitation Agreements”). Pursuant to the Class F Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or to reimburse the Fund for expenses the Fund incurs to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursements (including taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs and organizational costs and offering costs) to the extent that they exceed, per annum, 1.50% of the Fund’s average daily net assets attributable to Class F shares. Pursuant to the Multi-Class Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or reimburse the Fund for expenses the Fund incurs, but only to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursement (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs) to the extent that such expenses exceed, per annum, 2.25% of Class A average daily net assets, 3.00% of Class C average daily net assets, 2.00% of Class I average daily net assets, 2.50% of Class L average daily net assets and 2.75% of Class M average daily net assets (the “Expense Limitations”). The Expense Limitation Agreements will remain in effect at least through April 30, 2024. Per the Fund’s prospectus dated April 8, 2023, the total annual expense ratio is 3.36% for Class A shares, 4.11% for Class C shares, 1.50% for Class F shares, 3.11% for Class I shares, 3.61% for Class L shares, and 3.86% for Class M shares. Prior to January 1, 2023, the Adviser voluntarily waived or absorbed certain of the operating expenses of the Fund since the commencement of the Fund’s operations.

The Fund’s distribution policy is to make quarterly distributions to shareholders. Shareholders should not assume that the source of a distribution from the Fund is net profit. Please refer to the Fund’s most recent Section 19(a) notice for an estimate of the composition of the Fund’s most recent distribution, available at www.apollo.com, and the Fund’s semi-annual or annual reports filed with the U.S. Securities and Exchange Commission (the “SEC”) for additional information regarding the composition of distributions. The Fund’s distributions may be affected by numerous factors, including but not limited to changes in Fund expenses including the amount of expenses waived by the Fund’s Adviser, investment performance, realized and projected market returns, fluctuations in market interest rates, and other factors. There is no assurance that the Fund’s distribution rate will be sustainable in the future nor are distributions guaranteed.

Investors in the Fund should understand that the net asset value (“NAV”) of the Fund will fluctuate, which may result in a loss of the principal amount invested. All investments contain risk and may lose value. The Fund’s investments may be negatively affected by the broad investment environment and capital markets in which the Fund invests, including the debt market, real estate market, and/or the equity securities market. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. The use of leverage by the Fund will magnify the Fund’s gains or losses. The Fund is “diversified” under the Investment Company Act of 1940. Diversification does not eliminate the risk of experiencing investment losses. Holdings are subject to change without notice. The Fund is not intended to be a complete investment program.

Investing in lower-rated securities involves special risks in addition to the risks associated with investments in investment grade securities, including a high degree of credit risk. Lower-rated securities may be regarded as predominately speculative with respect to the issuer’s continuing ability to meet principal and interest payments. Analysis of the creditworthiness of issuers/issues of lower-rated securities may be more complex than for issuers/issues of higher quality debt securities. Securities that are in the lowest rating category are considered to have extremely poor prospects of ever attaining any real investment standing, to have a current identifiable vulnerability to default and/or to be unlikely to have the capacity to pay interest and repay principal. There is a risk that issuers will not make payments, resulting in losses to the Fund. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality may lead to greater volatility in the price of a security and in shares of the Fund. Lower credit quality also may affect liquidity and make it difficult to sell the security. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of securities, thereby reducing the value of your investment in Fund shares. The Adviser’s judgments about the attractiveness, value and potential appreciation of a particular sector and securities in which the Fund invests may prove to be incorrect and may not produce the desired results. Foreign investing involves special risks such as currency fluctuations and political uncertainty. The use of leverage by the Fund will magnify the Fund’s gains or losses. There is no guarantee that the Fund’s leverage strategy will be successful.

APOLLO DIVERSIFIED CREDIT FUND

This material may contain certain forward-looking statements. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. As a result, investors should not rely on such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to: uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our investment strategy; uncertainties relating to capital proceeds; and other risk factors as outlined in the Fund’s prospectus, statement of additional information, annual report and semi-annual report filed with the SEC.

The Fund is advised by Apollo Capital Credit Adviser, LLC (“ACCA”). ACCA is registered as an investment adviser with the SEC pursuant to the provisions of the Investment Advisers Act of 1940, as amended (the “Advisers Act”). The Fund is sub-advised by Apollo Credit Management, LLC (“Apollo”). Apollo is registered as an investment adviser with the SEC pursuant to the provisions of the Advisers Act. Apollo and ACCA are affiliates of Apollo Global Management, Inc. and its consolidated subsidiaries. Registration with the SEC does not constitute an endorsement by the SEC nor does it imply a certain level of skill or training.

This material may not be distributed, transmitted or otherwise communicated to others, in whole or in part, without the express written consent of Apollo Global Management, Inc. (together with its subsidiaries, “Apollo”).

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product or be relied upon for any other purpose. The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned herein. Information contained herein has been obtained from sources deemed to be reliable, but not guaranteed. Apollo Global Management and its affiliates do not provide tax, legal or accounting advice. This material is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. This material represents views as of the date of this presentation and is subject to change without notice of any kind.

APOLLO DIVERSIFIED CREDIT FUND

Endnotes

Leveraged Commentary and Data (LCD) – U.S. Credit Markets Quarterly Wrap as of July 3, 2023.

Wall Street Journal, June 2, 2023.

J.P. Morgan – North America Credit Research, June 2023. “High-yield bond” is represented by the J.P. Morgan Domestic High Yield Index. “Leveraged Loan” is represented by the J.P. Morgan Leveraged Loan Index.

Includes distressed exchanges.

Apollo Capital Credit Adviser, LLC, f/k/a Griffin Capital Credit Advisor, LLC (hereinafter “ACCA,” and together with ACCA’s affiliated registered investment advisers directly and indirectly owned by Apollo Global Management, Inc., “Apollo”) was acquired by Apollo Global Management, Inc., on May 2, 2022. Performance prior to May 2, 2022 was generated under the previous management team of the Fund’s former investment adviser, which was not affiliated with Apollo. The current management team of ACCA is responsible for performance on and after May 2, 2022.

Managed Assets are equal to the total of the Fund’s assets, including assets attributable to financial leverage, minus accrued liabilities, other than debt representing financial leverage. Holdings and allocations, unless disclosed otherwise, are based on Managed Assets.

Leverage is equal to consolidated Fund borrowings divided by total managed assets. The use of leverage by the Fund will magnify the Fund’s gains or losses. There is no guarantee that the Fund’s leverage strategy will be successful.

Duration is a measure of how sensitive the price of a debt instrument (such as a bond) is to a change in interest rates and is measured in years.

Distribution rates are not performance and reflect the applicable quarter’s cumulative distribution rate when annualized. Under GAAP, the composition of the Fund’s distribution on June 30, 2023 was estimated to include a de minimis amount of return of capital and should not be confused with yield or income. It is important to note that differences exist between the Fund’s accounting records prepared in accordance with GAAP and recordkeeping practices required under income tax regulations. Therefore, the characterization of Fund distributions for federal income tax purposes may be different from GAAP characterization estimates. The determination of what portion of each year’s distributions constitutes ordinary income, qualifying dividend income, short or long-term capital gains or return of capital is determined at year-end and reported to shareholders on Form 1099-DIV, which is mailed every year in late January. The Fund does not provide tax advice. Fund distributions would have been lower had expenses, such as management fees, not been waived during the period and the Adviser is under no obligation to continue the fee waiver for any specified period of time. Last Twelve Months’ Distribution Rate (Class I Share) as of June 30, 2023.

10.

Represents the Fund’s weighted average yield to worst at current market value of the Fund’s underlying holdings, excluding cash. Yield to worst is an estimate of the lowest yield expected from a debt investment, absent a default.

11.

Based on the Fund’s total market value exposure to debt securities.

12.

Excludes cash and other net assets.

13.

Totals may not sum due to rounding.

14.

Apollo Mid-Year Outlook, Chief Economist, June 2023.

15.

Pitchbook | LCD US Credit Market Quarterly Wrap, second quarter 2023.

16.

This investment example has been provided for discussion purposes only and was selected using an objective non-performance-based criteria to illustrate recent credit transactions. There is no guarantee that similar investment opportunities will become available in the future or, if available, achieve target returns. Future results may vary substantially.

17.

Yield-to-worst (YTW) is an estimate of the lowest yield that you can expect to earn from a debt investment, absent a default.

18.

Represents cash and other net assets including positions not categorized within the strategies described in the “Attribution by Strategy” table.

19.

Based on the market value of the funded amount.

20.

Based on the Global Industry Classification Standard (GICS).

21.

Past correlations are not indicative of future correlations, which may vary. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from -1 to 1. A positive correlation of 1 implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. A negative correlation of -1 indicates that the securities have moved in the opposite direction. If the correlation is 0, the movements of the securities are said to have no correlation; they are completely random. Data source: Morningstar using daily data. Assets and securities contained within indices and peer funds may be different than the assets and securities contained in Apollo Diversified Credit Fund and will therefore have different risk and reward profiles. An investment cannot be made in an index, which is unmanaged and has returns that do not reflect any trading, management, or other costs. Please see the glossary for descriptions of indices.

22.

As of June 30, 2023. Assets Under Management (“AUM”) refers to the assets of the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, including, without limitation, capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our AUM equals the sum of: 1. the NAV, plus used or available leverage and/or capital commitments, or gross assets plus capital commitments, of the yield and certain hybrid funds, partnerships and accounts for which we provide investment management or advisory services, other than CLOs, CDOs, and certain perpetual capital vehicles, which have a fee-generating basis other than the mark-to-market value of the underlying assets; for certain perpetual capital vehicles in yield, gross asset value plus available financing capacity; 2. the fair value of the investments of the equity and certain hybrid funds, partnerships and accounts Apollo manages or advises, plus the capital that such funds, partnerships and accounts are entitled to call from investors pursuant to capital commitments, plus portfolio level financings; 3. the gross asset value associated with the reinsurance investments of the portfolio company assets Apollo manages or advises; and 4. the fair value of any other assets that Apollo manages or advises for the funds, partnerships and accounts to which Apollo provides investment management, advisory, or certain other investment-related services, plus unused credit facilities, including capital commitments to such funds, partnerships and accounts for investments that may require pre-qualification or other conditions before investment plus any other capital commitments to such funds, partnerships and accounts available for investment that are not otherwise included in the clauses above.

Apollo’s AUM measure includes Assets Under Management for which Apollo charges either nominal or zero fees. Apollo’s AUM measure also includes assets for which Apollo does not have investment discretion, including certain assets for which Apollo earns only investment-related service fees, rather than management or advisory fees. Apollo’s definition of AUM is not based on any definition of Assets Under Management contained in its governing documents or in any management agreements of the funds Apollo manages. Apollo considers multiple factors for determining what should be included in its definition of AUM. Such factors include but are not limited to (1) Apollo’s ability to influence the investment decisions for existing and available assets; (2) Apollo’s ability to generate income from the underlying assets in the funds it manages; and (3) the AUM measures that Apollo uses internally or believes are used by other investment managers. Given the differences in the investment strategies and structures among other alternative investment managers, Apollo’s calculation of AUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Apollo’s calculation also differs from the manner in which its affiliates registered with the SEC report “Regulatory Assets Under Management” on Form ADV Part1A and Form PF in various ways.

APOLLO DIVERSIFIED CREDIT FUND

Apollo uses AUM as a performance measurement of its investment activities, as well as to monitor fund size in relation to professional resource and infrastructure needs.

Apollo Diversified Credit Fund

Portfolio Update

June 30, 2023 (Unaudited)

Performance (for the period ended June 30, 2023)

	6 Month			1 Year			3 Year****			5 Year****			Since Inception****			Inception
Apollo Diversified Credit Fund - A - With Load*		1.68	%		4.77	%		3.89	%		2.74	%		3.13	%		4/3/17
Apollo Diversified Credit Fund - A - Without Load		7.89	%		11.15	%		5.97	%		3.96	%		4.12	%		4/3/17
Apollo Diversified Credit Fund - C - With Load**		6.44	%		9.69	%		5.82	%		3.88	%		4.05	%		4/3/17
Apollo Diversified Credit Fund - C - Without Load		7.44	%		10.69	%		5.82	%		3.88	%		4.05	%		4/3/17
Apollo Diversified Credit Fund - I - NAV		7.97	%		11.24	%		6.00	%		3.98	%		4.14	%		4/3/17
Apollo Diversified Credit Fund - M - NAV		7.62	%		10.88	%		–			–			-0.67	%		11/2/21
Apollo Diversified Credit Fund - L - With Load***		3.19	%		6.26	%		4.39	%		3.03	%		3.18	%		9/5/17
Apollo Diversified Credit Fund - L - Without Load		7.75	%		10.95	%		5.92	%		3.93	%		3.96	%		9/5/17
Apollo Diversified Credit Fund - F - NAV		9.53	%		13.48	%		6.71	%		4.38	%		4.32	%		9/25/17
S&P/LSTA Leveraged Loan Index		5.87	%		9.84	%		4.80	%		3.69	%		3.74	%		4/3/17

Adjusted for initial maximum sales charge of 5.75%.

Adjusted for contingent deferred sales charge of 1.00% on shares repurchased during the first 365 days after their purchase

***

Adjusted for initial maximum sales charge of 4.25%

****

Annualized

The S&P/LSTA Leveraged Loan Index is a capitalization-weighted syndicated loan index based upon market weightings, spreads and interest payments. The S&P/LSTA Leveraged Loan Index covers the U.S. market back to 1997 and currently calculates on a daily basis.

Indexes are not actively managed and do not reflect deduction of fees, expenses or taxes. An investor cannot invest directly into an index. The returns shown above do not reflect the deduction of taxes a shareholder would pay on Fund distributions or redemption of Fund shares.

The performance data quoted above represents past performance. Past performance is not indicative of future results. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. The Fund's current performance is available by calling 1-888-926-2688 or by visiting www.apollodiversifiedcreditfund.com.

Apollo Capital Credit Adviser, LLC (formerly, Griffin Capital Credit Advisor, LLC) was acquired by Apollo Global Management, Inc., an affiliate of the Fund’s sub-adviser, on May 2, 2022. Performance prior to May 2, 2022 was generated under the previous management team of the Fund’s investment adviser. The current management team of the Fund’s investment adviser is responsible for performance on and after May 2, 2022.

Class A shares are offered subject to a maximum sales charge of 5.75% of the offering price and Class L shares are offered subject to a maximum sales charge of 4.25% of the offering price. Class C, Class I and Class M shares are offered at net asset value per share. Class C shares may be subject to a 1.00% contingent deferred sales charge on shares redeemed during the first 365 days after their purchase. Class F Shares are no longer offered except for reinvestment of dividends at net asset value. The Adviser and the Fund have entered into an expense limitation and reimbursement agreement with respect to Class F shares (the “Class F Expense Limitation Agreement”) and a separate agreement with respect to all other classes of shares (the “Multi-Class Expense Limitation Agreement” and together with the Class F Expense Limitation Agreement, the “Expense Limitation Agreements”). Pursuant to the Class F Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or to reimburse the Fund for expenses the Fund incurs to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursements (including taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs and organizational costs and offering costs) to the extent that they exceed, per annum, 1.50% of the Fund’s average daily net assets attributable to Class F shares. Pursuant to the Multi-Class Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or reimburse the Fund for expenses the Fund incurs, but only to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursement (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs) to the extent that such expenses exceed, per annum, 2.25% of Class A average daily net assets, 3.00% of Class C average daily net assets, 2.00% of Class I average daily net assets, 2.50% of Class L average daily net assets and 2.75% of Class M average daily net assets (the “Expense Limitations”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser (or any successor thereto) in the amount of any fees waived and reimbursed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date on which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Expense Limitation applicable to such Class in place at the time of waiver or at the time of reimbursement to be exceeded. In addition, pursuant to the Multi-Class Expense Limitation Agreement, any such repayment must be approved by the Fund's Board of Trustees (the "Board" or the "Trustees"). The Expense Limitation Agreements will remain in effect at least through April 30, 2024. The Multi-Class Expense Limitation Agreement may then be renewed for consecutive twelve-month periods provided that the Adviser specifically approves such continuance at least annually. The Class F Expense Limitation Agreement shall continue in effect so long as Class F shares are outstanding. The Expense Limitation Agreements may be terminated only by the Board on written notice to the Adviser and will automatically terminate at such time as the Management Agreement between the Adviser and the Fund terminates. Total annual expenses after fee waivers were 2.95%, 3.70%, 2.70%, 3.20%, 1.85%, and 3.45% for Class A, Class C, Class I, Class L, Class F, and Class M, for the period ended December 31, 2022. For the period of August 16, 2021 to March 31, 2022, the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.50% of net assets. For the period April 1, 2022 to September 30, 2022, the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.00% of net assets. For the period October 1, 2022 to December 31, 2022, the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.25% of net assets. In the absence of the election by the Fund's investment adviser to bear certain of the Fund's operating expenses, the ratio of expenses to average net assets including fee waivers and The voluntary waiver is separate and apart from the contractual. Please review the Fund’s Prospectus for more details regarding the Fund’s fees and expenses. No assurances can be given that the Fund will pay a distribution in the future; or, if any such distribution is paid, the amount or rate of the distribution.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Portfolio Update

June 30, 2023 (Unaudited)

Performance of $10,000 Initial Investment (for the period ended June 30, 2023)

The graph shown above represents historical performance of a hypothetical investment of $10,000 in the Class A Shares of the Fund since inception. Past performance is not indicative of future results. All returns reflect reinvested distributions, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

16	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
BANK LOANS (86.21%)^(b)(c)

AEROSPACE & DEFENSE (3.37%)
Forming Machining Industries Holdings LLC, Second Lien Initial Term Loan	United States	1M SOFR + 8.25%		13.73	%	10/09/26	$	310,000	$	214,675
MRO Holdings, Inc., First Lien Term Loan ^(d)(e)	United States	3M US L + 6.25%		11.76	%	12/18/28		9,967,213		9,967,213
Peraton Corp., First Lien Term Loan B ^(e)	United States	3M SOFR + 3.75%		8.95	%	02/01/28		6,421,528		6,321,769
Vertex Aerospace Services Corp., First Lien Term Loan ^(e)	United States	3M SOFR + 3.75%		8.95	%	12/06/28		5,874,142		5,880,281
										22,383,938
AUTOMOTIVE (0.16%)
Dodge Data & Analytics LLC, Second Lien Term Loan	United States	3M SOFR + 8.25%		13.64	%	02/25/30		1,513,158		1,070,559

BANKING, FINANCE, INSURANCE & REAL ESTATE (9.46%)
Apex Group Treasury LLC, First Lien Term Loan ^(e)	United States	3M SOFR + 5.00%		9.99	%	07/27/28		4,664,063		4,646,572
Edelman Financial Engines Center LLC, First Lien Term Loan ^(e)	United States	3M US L + 3.75%		8.94	%	04/07/28		1,634,540		1,596,643
Edelman Financial Engines Center LLC, Second Lien Term Loan	United States	3M US L + 6.75%		11.94	%	07/20/26		1,133,895		1,098,602
Howden, First Lien Term Loan B	United Kingdom	3M SOFR + 4.00%		9.10	%	04/18/30		3,900,225		3,897,788
Howden, First Lien Term Loan ^(d)(e)	United Kingdom	3M SOFR + 5.25%		10.35	%	11/12/27		23,000,000		23,000,000
Paisley Bidco Limited, Delayed Draw, First Lien Term Loan ^(d)(f)	United Kingdom	3M SONIA + 7.00%		9.74	%	03/17/28	£	7,500,000		9,525,019
Project Antelope B1 Delayed Draw, First Lien Term Loan (3.75% PIK)^(d)(g)	France	6M EUR L + 6.50%		10.10	%	04/18/30	€	4,473,333		4,734,874
Project Antelope B2 Delayed Draw, First Lien Term Loan (3.75% PIK)^(d)(f)(g)	France	L + 6.50%				04/18/30		526,667		557,459
Safe-Guard, First Lien Incremental Term Loan ^(d)	United States	3M SOFR + 6.00%		11.20	%	01/27/27	$	9,000,000		8,820,000
Safe-Guard, First Lien Term Loan ^(d)	United States	3M SOFR + 6.00%		11.20	%	01/27/27		1,914,894		1,876,596
VEPF VII Holdings, LP, First Lien Term Loan ^(d)(g)	United States	3M SOFR + 4.50%		9.73	%	02/28/28		3,060,146		3,053,719
										62,807,272
BEVERAGE, FOOD & TOBACCO (0.42%)
Market Bidco Ltd., First Lien Term Loan	United Kingdom	6M EUR L + 4.75%		8.07	%	11/04/27	€	3,000,000		2,817,169

CHEMICALS, PLASTICS, & RUBBER (2.38%)
Deccan Holdings B.V., First Lien Term Loan (1.75% PIK)^(d)(g)	India	3M SOFR + 1.75%		12.47	%	09/16/25	$	3,306,227		3,339,289
LSF11 A5 HoldCo LLC, First Lien Term Loan ^(e)	United States	1M SOFR + 4.25%		9.45	%	10/15/28		5,065,022		5,035,492
Neptune Husky US Bidco, LLC, First Lien Term Loan ^(e)	Luxembourg	3M SOFR + 5.00%		10.39	%	01/03/29		3,816,066		2,840,584
Olympus Water US Holding Corp., First Lien Term Loan B ^(e)	United States	3M US L + 3.75%		9.25	%	11/09/28		3,949,103		3,803,480
Olympus Water US Holding Corp., First Lien Term Loan ^(e)	United States	3M SOFR + 4.50%		9.84	%	11/09/28		814,802		787,938
										15,806,783

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date		Principal Amount		Value (Note 2)(a)
CONSTRUCTION & BUILDING (0.18%)
LSF10 XL Bidco S.C.A., First Lien Facility B4 Term Loan	Luxembourg	6M EUR L + 3.93%		7.52	%		04/12/28	€	1,280,206	$	1,198,420

CONSUMER GOODS: DURABLE (0.23%)
Varsity Brands Holding Co., Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 5.00%		10.22	%		12/15/26	$	1,607,910		1,549,624

CONSUMER GOODS: NON-DURABLE (4.47%)
ABG Intermediate Holdings 2, First Lien Term Loan B2 ^(e)	United States	3M SOFR + 4.00%		9.20	%		12/21/28		3,539,506		3,536,409
ABG Intermediate Holdings 2, First Lien Delayed Draw Term Loan ^(e)(f)	United States	SOFR + 4.00%					12/21/28		1,160,494		1,159,478
ABG Intermediate Holdings 2, First Lien Term Loan ^(e)	United States	3M SOFR + 3.50%		8.70	%		12/21/28		3,593,786		3,583,903
ABG Intermediate Holdings 2, Second Lien Term Loan	United States	3M SOFR + 6.00%		11.20	%		12/20/29		341,398		319,207
Altern Marketing Revolver, First Lien Term Loan ^(d)(f)	United States	3M SOFR + 6.00%		8.00	%		06/13/28		1,134,454		1,111,765
Altern Marketing Term Loan A, First Lien Term Loan ^(d)	United States	3M SOFR + 6.00%		8.00	%		06/13/28		7,865,546		7,708,235
Iconix, First Lien Term Loan ^(d)	United States	3M SOFR + 6.00%		11.39	%		08/22/29		2,430,769		2,382,154
Revlon Revolver, First Lien Term Loan ^(d)(f)	United States	3M SOFR + 4.50%		9.43	%		05/02/26		10,000,000		9,850,000
											29,651,151
CONTAINERS, PACKAGING & GLASS (3.02%)
Mauser Packaging Solutions Holding Company, First Lien Term Loan ^(e)	United States	3M SOFR + 4.00%		9.11	%		08/14/26		6,758,794		6,747,980
Tekni-Plex, Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 5.25%		10.49	%		09/15/28		1,241,069		1,230,725
Tekni-Plex, Inc., First Lien Tranche B-3 Initial Term Loan ^(e)	United States	3M US L + 4.00%		9.54	%		09/15/28		3,349,728		3,304,272
Trident TPI Holdings, Inc., First Lien 2018 Dollar Term Loan ^(e)	United States	3M SOFR + 4.50%		9.74	%		09/15/28		8,890,451		8,787,633
											20,070,610
ENERGY: OIL & GAS (0.00%)
AMH Litigation Trust, First Lien Delayed Draw Term Loan ^(d)(h)	United States						06/08/25		1,118		–
AMH Litigation Trust, First Lien Delayed Draw Term Loan ^(d)(h)	United States						06/06/25		1,044		–
											–
ENVIRONMENTAL INDUSTRIES (1.12%)
Ruler BidCo B2, First Lien Term Loan ^(d)	Luxembourg	6M SOFR + 6.50%		11.53	%		05/02/30		1,618,319		1,569,769
Ruler BidCo Delayed Draw, First Lien Term Loan ^(d)(f)	Luxembourg	L + 6.50%					05/02/30	€	1,568,000		1,659,676
Ruler BidCo. B1, First Lien Term Loan ^(d)	Luxembourg	6M EUR L + 6.50%		10.12	%		05/02/30		3,951,573		4,182,608
											7,412,053
HEALTHCARE & PHARMACEUTICALS (14.26%)
Advarra Holdings, Inc., First Lien Delayed Draw Term Loan ^(d)(e)(f)	United States	SOFR + 5.75%					08/24/29	$	1,243,180		1,230,749
Advarra Holdings, Inc., First Lien Term Loan ^(d)(e)	United States	3M SOFR + 5.75%		10.85	%		08/24/29		13,688,035		13,551,155
AthenaHealth Group, Inc., First Lien Delayed Draw Term Loan ^(e)(f)	United States	SOFR + 3.50%					02/15/29		1,149,753		1,109,512
AthenaHealth Group, Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 3.50%		8.59	%		02/15/29		9,350,262		9,023,003

See Notes to Consolidated Financial Statements.

18	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
HEALTHCARE & PHARMACEUTICALS (continued)
Bausch Health Americas, Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 5.25%		10.45	%	02/01/27	$	5,341,771	$	4,050,665
CHG Healthcare Services, First Lien Term Loan ^(e)	United States	3M US L + 3.25%		8.44	%	09/29/28		5,454,825		5,435,051
Corpuls, First Lien Term Loan ^(d)	Germany	6M EUR L + 7.00%		10.58	%	06/30/30	€	4,000,000		4,277,515
Inovalon, First Lien Term Loan (2.75% PIK)^(d)(e)(g)	United States	3M US L + 3.50%		8.91	%	11/24/28	$	10,209,994		10,005,795
Inovalon, Second Lien Term Loan (15.46% PIK)^(d)(g)	United States	1M SOFR + 10.50%		15.99	%	11/25/33		111,803		109,008
Keystone Acquisition, First Lien Term Loan ^(d)(e)	United States	3M SOFR + 6.50%		11.75	%	12/17/28		8,955,000		8,641,575
Keystone Acquisition Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 6.50%				12/17/27		1,000,000		965,000
LSCS Holdings/Eversana, First Lien Term Loan ^(e)	United States	3M US L + 4.50%		9.69	%	12/16/28		3,656,324		3,578,627
Milano Acquisition Corp., First Lien Term Loan B ^(e)	United States	3M SOFR + 4.00%		9.34	%	10/01/27		6,859,691		6,765,370
National Mentor Holdings, Inc., Second Lien Initial Term Loan	United States	3M SOFR + 7.25%		12.59	%	03/02/29		1,609,442		820,815
Pathway Vet Alliance LLC, First Lien 2021 Replacement Term Loan ^(e)	United States	3M US L + 3.75%		8.94	%	03/31/27		4,764,238		4,220,329
Phoenix Newco, Inc., First Lien Term Loan ^(e)	United States	3M US L + 3.25%		8.47	%	11/15/28		3,500,000		3,477,250
Project Dolphin, First Lien Term Loan ^(d)	United Kingdom	3M SONIA + 6.50%		11.46	%	11/18/29	£	5,000,000		6,191,262
Tivity Health, Inc., First Lien Term Loan ^(d)	United States	3M SOFR + 6.00%		11.24	%	06/28/29	$	7,462,500		7,387,875
Zest Acquisition Corp., First Lien Term Loan ^(e)	United States	3M SOFR + 5.50%		10.64	%	02/08/28		3,990,000		3,850,350
										94,690,906
HIGH TECH INDUSTRIES (17.35%)
Access Group PIK, First Lien Delayed Draw Term Loan (4.00% PIK)^(d)(f)(g)	United Kingdom	3M SONIA + 5.25%		10.24	%	06/28/29	£	2,057,000		2,547,085
Access Group PIK, First Lien Term Loan (4.00% PIK)^(d)(g)	United Kingdom	3M SONIA + 5.25%		10.19	%	06/28/29		3,943,000		4,882,430
Anaplan Inc., First Lien Term Loan ^(d)(e)	United States	3M SOFR + 6.50%		11.60	%	06/21/29	$	9,417,548		9,370,460
Anaplan Inc., Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 6.50%				06/21/28		582,452		579,540
Auctane, Inc., First Lien Term Loan ^(d)(e)	United States	3M US L + 5.75%		10.94	%	10/05/28		9,924,623		9,924,623
Avalara Inc., First Lien Term Loan ^(d)	United States	3M SOFR + 7.25%		12.49	%	10/19/28		18,181,818		17,909,088
Avalara Inc., Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 7.25%				10/19/28		1,818,182		1,790,909
Coupa Holdings LLC, Delayed Draw, First Lien Term Loan ^(d)(f)	United States	SOFR + 7.50%				02/27/30		539,886		526,389
Coupa Holdings LLC, First Lien Term Loan ^(d)(e)	United States	3M SOFR + 7.50%		12.60	%	02/27/30		6,046,728		5,895,560
Coupa Holdings LLC, Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 7.50%				02/27/29		413,386		403,051
DCert Buyer, Inc., First Lien Initial Term Loan ^(e)	United States	1M SOFR + 4.00%		9.26	%	10/16/26		5,449,961		5,411,648
Dcert Buyer, Inc., Second Lien First Amendment Refinancing Term Loan	United States	1M SOFR + 7.00%		12.26	%	02/19/29		1,403,693		1,293,741
Digital Media Solutions LLC, First Lien Initial Term Loan ^(e)	United States	3M US L + 5.00%		10.54	%	05/25/26		838,746		661,301
Flexera Software LLC, First Lien Term Loan ^(e)	United States	3M US L + 3.75%		8.97	%	03/03/28		5,415,736		5,346,333

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date		Principal Amount		Value (Note 2)(a)
HIGH TECH INDUSTRIES (continued)
Imperva, Inc., First Lien Term Loan ^(e)	United States	3M US L + 4.00%		9.34	%		01/12/26	$	6,416,452	$	5,826,941
Sovos Compliance LLC, First Lien Initial Term Loan ^(e)	United States	3M US L + 4.50%		9.72	%		08/11/28		6,907,465		6,682,351
Tibco Software, Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 4.50%		9.84	%		09/29/28		9,971,959		9,360,379
UKG, Inc., First Lien Initial Term Loan ^(e)	United States	3M SOFR + 3.75%		8.90	%		05/04/26		4,464,103		4,410,556
UKG, Inc., First Lien Term Loan ^(e)	United States	3M SOFR + 3.25%		8.62	%		05/04/26		128,522		126,326
UKG, Inc., Second Lien Term Loan	United States	3M SOFR + 5.25%		10.62	%		05/03/27		2,499,586		2,430,848
Zendesk Delayed Draw, First Lien Term Loan (3.00% PIK)^(d)(f)(g)	United States	SOFR + 6.50%					11/22/28		3,695,652		3,640,217
Zendesk Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 6.50%					11/22/28		1,521,739		1,498,913
Zendesk Term Loan, First Lien Term Loan (3.50% PIK)^(d)(g)	United States	3M SOFR + 7.00%		12.25	%		11/22/28		14,911,957		14,688,277
											115,206,966
HOTEL, GAMING & LEISURE (3.94%)
Life Time Group Holdings, Inc., First Lien Term Loan B	United States	3M SOFR + 4.75%		9.80	%		01/15/26		7,000,000		7,009,870
NCL Corporation Ltd., Backstop Notes Bridge, First Lien Term Loan ^(d)(f)(h)	United States						02/22/24		2,080,000		2,080,000
NCL Corporation Ltd., First Lien Term Loan B ^(d)(f)(h)	United States						02/22/24		3,460,000		3,460,000
Playa Hotels & Resorts B.V., First Lien Term Loan B ^(e)	United States	3M SOFR + 4.25%		9.34	%		01/05/29		6,750,574		6,741,765
Scientific Games Holdings LP, First Lien Term Loan ^(e)	United States	3M SOFR + 3.50%		8.77	%		04/04/29		6,962,462		6,888,486
											26,180,121

MEDIA: ADVERTISING, PRINTING & PUBLISHING (3.82%)
Associations Inc., PIK, First Lien Term Loan (2.50% PIK)^(d)(g)	United States	1M SOFR + 6.50%		12.03	%		07/02/27		3,076,767		3,076,767
Houghton Mifflin Harcourt Co., First Lien Term Loan ^(e)	United States	3M SOFR + 5.25%		10.45	%		04/09/29		4,088,440		3,510,948
McGraw-Hill Education, Inc., First Lien Term Loan ^(e)	United States	3M US L + 4.75%		9.97	%		07/28/28		6,155,008		5,785,708
R.R. Donnelley & Sons Company, First Lien Term Loan B	United States	3M SOFR + 7.25%		12.45	%		03/17/28		13,025,472		12,976,626
											25,350,049
MEDIA: BROADCASTING & SUBSCRIPTION (2.40%)
Clear Channel Outdoor Holdings, Inc., First Lien Term Loan ^(e)	United States	1M SOFR + 3.50%		8.81	%		08/21/26		6,425,857		6,149,288
CSC Holdings LLC, First Lien March 2017 Refinancing Term Loan ^(e)	United States	3M US L + 2.25%		7.44	%		07/17/25		6,757,228		6,526,367
Virgin Media Ireland, Ltd., First Lien Facility B1 Term Loan	Ireland	6M EUR L + 3.46%		6.79	%		07/15/29	€	3,093,224		3,235,461
											15,911,116
RETAIL (1.49%)
Bellis Acquisition Company PLC, First Lien Term Loan B	United Kingdom	6M EUR L + 2.75%		6.06	%		02/16/26		3,000,000		3,150,848
EG Group Limited, First Lien Term Loan B1	United Kingdom	6M EUR L + 4.00%		7.42	%		02/07/25		6,279,257		6,729,156
Mahwah Bergen Retail Group, Inc., First Lien Tranche B Term Loan ⁽ⁱ⁾	United States	3M US L + 4.50%		5.25	%		08/21/22	$	1,435,369		5,835
											9,885,839

See Notes to Consolidated Financial Statements.

20	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
SERVICES: BUSINESS (10.12%)
Acuity, First Lien Delayed Draw Term Loan ^(d)	United Kingdom	3M SOFR + 5.25%		10.08	%	06/07/29	$	1,137,500	$	1,114,750
Acuity, First Lien Term Loan ^(d)	United Kingdom	3M SOFR + 5.25%		10.08	%	06/07/29		6,362,500		6,235,250
Coretrust, First Lien Delayed Draw Term Loan ^(d)(f)	United States	SOFR + 6.75%				10/01/29		789,474		765,789
Coretrust, First Lien Revolver Loan Term Loan ^(d)(f)	United States	SOFR + 6.75%				10/01/29		789,474		765,789
Coretrust, First Lien Term Loan ^(d)	United States	3M SOFR + 6.75%		11.85	%	10/01/29		5,407,500		5,245,275
Deerfield Dakota Holding LLC, First Lien Term Loan ^(e)	United States	3M SOFR + 3.75%		8.99	%	04/09/27		5,943,968		5,783,689
eResearchTechnology, Inc., First Lien Initial Term Loan ^(e)	United States	1M SOFR + 4.50%		9.72	%	02/04/27		6,341,878		6,115,156
GBT Group Services B.V., First Lien Term Loan (4.00% PIK)^(g)	Netherlands	3M SOFR + 6.75%		12.07	%	12/16/26		15,000,000		15,056,325
Planet US Buyer LLC, First Lien Term Loan ^(d)(e)	United States	3M SOFR + 6.75%		11.85	%	02/01/30		6,465,278		6,271,319
Planet US Buyer LLC, Revolver, First Lien Term Loan ^(d)(f)	United States	SOFR + 6.75%				02/01/28		518,519		502,963
Polaris Newco LLC, First Lien Term Loan ^(e)	United States	3M US L + 4.00%		9.54	%	06/02/28		6,933,304		6,401,728
Project Ruby Ultimate Parent Corp., First Lien Closing Date Term Loan ^(e)	United States	3M SOFR + 3.25%		8.47	%	03/10/28		1,994,898		1,953,394
Valor, Inc., EUR, First Lien Term Loan (1.73% PIK)^(d)(g)	United Kingdom	6M EUR L + 5.65%		9.25	%	07/11/29	€	1,410,281		1,492,736
Valor, Inc., First Lien Delayed Draw Term Loan (1.73% PIK)^(d)(f)(g)	United Kingdom	6M EUR L + 5.75%		10.59	%	07/11/29		1,750,000		1,852,317
Valor, Inc., GBP, First Lien Term Loan (1.73% PIK)^(d)(g)	United Kingdom	3M SONIA + 5.65%		10.59	%	07/11/29	£	2,295,636		2,827,999
Wellsky, First Lien Term Loan ^(d)	United States	3M SOFR + 5.75%		10.97	%	03/10/28	$	4,975,000		4,800,875
										67,185,354
SERVICES: CONSUMER (1.77%)
Delivery Hero SE, First Lien Term Loan ^(e)	Korea, Republic of, (South Korea)	3M SOFR + 5.75%		10.85	%	08/12/27		5,050,153		5,022,806
Mavis Tire Express Services Topco Corp., First Lien Initial Term Loan ^(e)	United States	3M SOFR + 4.00%		9.22	%	05/04/28		6,812,868		6,763,918
										11,786,724
TELECOMMUNICATIONS (3.21%)
CommScope, Inc., First Lien Term Loan ^(e)	United States	3M US L + 3.25%		8.47	%	04/06/26		15,148,073		14,544,043
LOGIX Holding Company LLC, First Lien Initial Term Loan	United States	3M US L + 5.75%		11.48	%	12/22/24		251,912		201,530
TDC Net Term Loan A, First Lien Term Loan ^(d)	Denmark	6M EUR L + 1.50%		4.98	%	01/31/24	€	529,081		539,808
TDC Net Term Loan B, First Lien Term Loan ^(d)	Denmark	6M EUR L + 1.50%		4.98	%	01/29/27		695,143		709,236
Zacapa SARL, First Lien Term Loan B ^(e)	Luxembourg	6M SOFR + 4.00%		9.24	%	03/22/29	$	5,451,406		5,321,526
										21,316,143
TRANSPORTATION: CARGO (2.35%)
Channelside Delayed Draw, First Lien Term Loan ^(d)(e)(f)	United States	SOFR + 6.75%				07/01/28		414,667		402,227
Channelside Revolver, First Lien Term Loan ^(d)(e)(f)	United States	SOFR + 6.75%				07/01/26		333,333		323,333
Channelside, First Lien Term Loan ^(d)(e)	United States	3M SOFR + 6.75%		11.89	%	06/30/28		3,243,870		3,146,554
Swissport, First Lien Term Loan ^(d)	Luxembourg	6M EUR L + 7.25%		10.85	%	09/30/27	€	11,000,000		11,703,149
										15,575,263

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
WHOLESALE (0.69%)
LBM Acquisition LLC, First Lien Term Loan ^(e)	United States	3M US L + 3.75%		8.95	%	12/17/27	$	4,790,550	$	4,613,396

TOTAL BANK LOANS
(Cost $571,980,945)										572,469,456

CORPORATE BONDS (40.41%)^(j)
AEROSPACE & DEFENSE (1.01%)^(e)(k)
Allegiant Travel Co.	United States			7.25	%	08/15/27	$	3,000,000		2,992,680
Allegiant Travel Co.	United States			8.50	%	02/05/24		3,722,000		3,731,305
										6,723,985
AUTOMOTIVE (1.64%)^(k)
Carvana Co.	United States			10.25	%	05/01/30		14,208,000		10,869,120

BANKING, FINANCE, INSURANCE & REAL ESTATE (1.52%)
Encore Capital Group, Inc.^(k)	United States			4.25	%	06/01/28	£	672,000		654,091
Global Atlantic Fin Co.^(k)	United States			3.13	%	06/15/31	$	4,855,000		3,660,592
Global Atlantic Fin Co.^(k)	United States			7.95	%	06/15/33		4,571,000		4,637,788
Kane Bidco, Ltd.	United Kingdom			6.50	%	02/15/27	£	1,000,000		1,145,610
										10,098,081
BEVERAGE, FOOD & TOBACCO (0.73%)^(k)
Market Bidco Finco PLC	United Kingdom			5.50	%	11/04/27		4,870,000		4,841,876

CHEMICALS, PLASTICS, & RUBBER (0.81%)^(k)
Olympus Water US Holding Corp.^(e)	United States			7.13	%	10/01/27	$	3,750,000		3,395,561
Olympus Water US Holding Corp.	United States			9.75	%	11/15/28		2,000,000		1,951,850
										5,347,411
CONSTRUCTION & BUILDING (1.42%)^(k)
K Hovnanian Enterprises, Inc.	United States			7.75	%	02/15/26		4,868,000		4,802,980
Standard Industries, Inc.	United States			4.75	%	01/15/28		5,000,000		4,655,497
										9,458,477
CONTAINERS, PACKAGING & GLASS (0.77%)^(e)(k)
LABL, Inc.	United States			9.50	%	11/01/28		5,000,000		5,089,285

ENERGY: OIL & GAS (4.58%)
Alta Mesa Holdings LP / Alta Mesa Finance Services Corp.⁽ⁱ⁾	United States					12/15/24		968,000		4,937
Energy Transfer LP, Series A^(b)	United States	3M US L + 4.03%		9.35	%	02/15/72		2,000,000		1,797,500
Energy Transfer LP, Series H^(b)	United States	5Y US T + 5.69%		6.50	%	11/15/69		12,458,000		11,346,996
Moss Creek Resources Holdings, Inc.^(k)	United States			10.50	%	05/15/27		10,000,000		9,611,875
Venture Global LNG, Inc.^(e)(k)	United States			8.13	%	06/01/28		7,500,000		7,626,487
										30,387,795
FOREST PRODUCTS & PAPER (0.37%)^(e)(k)
Ahlstrom Holding 3 Oy	Finland			4.88	%	02/04/28		3,000,000		2,480,457

HEALTHCARE & PHARMACEUTICALS (0.85%)
Bausch Health Companies, Inc.^(k)	United States			5.50	%	11/01/25		3,000,000		2,651,220
CAB SELAS	France			3.38	%	02/01/28	€	2,567,000		2,289,285
Chrome Bidco SAS	France			3.50	%	05/31/28		502,000		461,908
US Acute Care Solutions LLC^(k)	United States			6.38	%	03/01/26	$	266,000		228,095
										5,630,508

See Notes to Consolidated Financial Statements.

22	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
HIGH TECH INDUSTRIES (2.69%)
CA Magnum Holdings^(e)(k)	India			5.38	%	10/31/26	$	4,899,000	$	4,417,755
Wolfspeed, Inc.^(d)	United States			9.88	%	06/23/30		14,000,000		13,440,000
										17,857,755
HOTEL, GAMING & LEISURE (7.20%)
Allwyn Entertainment Financing UK PLC^(k)	Czech Republic			7.25	%	04/30/30	€	8,000,000		8,881,918
Allwyn Entertainment Financing UK PLC^(b)(k)	Czech Republic	3M EUR L + 4.13%		7.45	%	02/15/28		764,000		834,824
Carnival Corp.^(k)	United States			10.50	%	02/01/26	$	5,000,000		5,258,594
Carnival Holdings Bermuda, Ltd.^(k)	United States			10.38	%	05/01/28		5,069,000		5,547,387
Life Time, Inc.^(e)(k)	United States			5.75	%	01/15/26		10,000,000		9,758,046
Loarre Investments SARL^(k)	Luxembourg			6.50	%	05/15/29	€	7,000,000		7,277,421
NCL Corporation Ltd.^(d)	United States			9.75	%	02/22/28	$	3,460,000		3,674,866
Royal Caribbean Cruises, Ltd.^(k)	United States			7.25	%	01/15/30		1,300,000		1,317,601
Royal Caribbean Cruises, Ltd.^(e)(k)	United States			8.25	%	01/15/29		3,400,000		3,576,375
Royal Caribbean Cruises, Ltd.^(k)	United States			9.25	%	01/15/29		1,600,000		1,706,640
										47,833,672
MEDIA: ADVERTISING, PRINTING & PUBLISHING (1.91%)
Cimpress PLC	Ireland			7.00	%	06/15/26		875,000		795,156
Gannett Holdings LLC^(k)	United States			6.00	%	11/01/26		7,500,000		6,373,800
McGraw-Hill Education, Inc.^(e)(k)	United States			5.75	%	08/01/28		6,367,000		5,530,005
										12,698,961
MEDIA: BROADCASTING & SUBSCRIPTION (4.08%)
CCO Holdings LLC / CCO Holdings Capital Corp.^(k)	United States			4.50	%	06/01/33		2,500,000		1,960,938
CCO Holdings LLC / CCO Holdings Capital Corp.^(k)	United States			7.38	%	03/01/31		4,000,000		3,902,620
Charter Communications Operating LLC /
Charter Communications Operating
Capital	United States			3.50	%	03/01/42		3,750,000		2,510,950
CSC Holdings LLC^(k)	United States			5.50	%	04/15/27		5,238,000		4,363,909
CSC Holdings LLC^(k)	United States			11.25	%	05/15/28		3,617,000		3,514,518
Vmed O2 UK Financing I PLC	United Kingdom			4.50	%	07/15/31	£	6,026,000		5,824,709
Ziggo B.V.^(k)	Netherlands			4.88	%	01/15/30	$	6,000,000		5,025,000
										27,102,644
RETAIL (2.30%)
Bellis Acquisition Company PLC	United Kingdom			3.25	%	02/16/26	£	4,424,000		4,718,631
Douglas GmbH	Germany			6.00	%	04/08/26	€	2,000,000		2,007,792
eG Global Finance PLC	United Kingdom			6.25	%	10/30/25		1,600,000		1,666,107
Guitar Center, Inc.^(e)(k)	United States			8.50	%	01/15/26	$	7,501,000		6,854,039
										15,246,569
SERVICES: BUSINESS (2.78%)
Advantage Sales & Marketing, Inc.^(k)	United States			6.50	%	11/15/28		7,679,000		6,498,354
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL^(e)(k)	United States			4.63	%	06/01/28		7,500,000		6,353,213
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 SARL, Series Reg S	United States			3.63	%	06/01/28	€	3,000,000		2,622,919
Garda World Security Corp.^(e)(k)	Canada			7.75	%	02/15/28	$	3,000,000		2,998,125
										18,472,611
TELECOMMUNICATIONS (3.73%)
Frontier Communications Holdings LLC^(k)	United States			5.88	%	10/15/27		4,000,000		3,673,412
Frontier Communications Holdings LLC^(e)(k)	United States			8.75	%	05/15/30		6,000,000		5,868,750

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
TELECOMMUNICATIONS (continued)
Lorca Telecom Bondco SA	Spain			4.00	%	09/18/27	€	5,441,000	$	5,429,621
Uniti Group LP / Uniti Group Finance, Inc. / CSL Capital LLC^(e)(k)	United States			10.50	%	02/15/28	$	9,837,000		9,787,815
										24,759,598
TRANSPORTATION: CONSUMER (0.68%)
Hertz Corp.^(k)	United States			4.63	%	12/01/26		5,000,000		4,518,750

UTILITIES: ELECTRIC (1.34%)
Edison International^(b)	United States	5Y US T + 3.86%		8.13	%	06/15/53		8,711,000		8,909,175

TOTAL CORPORATE BONDS
(Cost $273,985,180)										268,326,730

CONVERTIBLE CORPORATE BONDS (0.74%)^(j)

MEDIA: ADVERTISING, PRINTING & PUBLISHING (0.74%)
Gannett Co., Inc.^(d)	United States			6.00	%	12/01/27	$	5,000,000		4,938,152

TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $5,174,239)										4,938,152

Description	Country	Spread Above Index	Rate			Maturity Date	Principal Amount		Value (Note 2)(a)
COLLATERALIZED LOAN OBLIGATIONS (1.99%)
DEBT (1.91%)^(b)(k)
Anchorage Credit Funding 13, Ltd., Series 2021-13A	Cayman Islands			6.84	%	07/27/39	$	350,000		261,859
Anchorage Credit Funding 13, Ltd., Series 2021-13A	Cayman Islands			6.92	%	07/27/39		2,300,000		1,728,579
Anchorage Credit Funding 14, Ltd., Series 2021-14A	Cayman Islands			7.45	%	01/21/40		850,000		659,835
Multifamily Housing Mortgage Loan Trust, Series MF1 2022-B1 A	United States	1M SOFR + 2.40%		7.47	%	11/17/37		8,000,000		8,040,912
Multifamily Housing Mortgage Loan Trust, Series MF1 2022-B1 B	United States	1M SOFR + 3.28%		8.35	%	11/17/37		100,000		99,715
Multifamily Housing Mortgage Loan Trust, Series MF1 2022-B1 C	United States	1M SOFR + 4.03%		9.10	%	11/17/37		1,034,000		1,029,250
Multifamily Housing Mortgage Loan Trust, Series MF1 2022-B1 D	United States	1M SOFR + 4.53%		9.60	%	11/17/37		142,000		141,314
Multifamily Housing Mortgage Loan Trust, Series MF1 2022-B1 E	United States	1M SOFR + 5.38%		10.45	%	11/17/37		724,000		716,877
										12,678,341
EQUITY (0.08%)^(k)(l)
Anchorage Credit Funding 13, Ltd., Series 2021-13A	Cayman Islands			15.07	%	07/27/39	$	850,000		527,448
										527,448
TOTAL COLLATERALIZED LOAN OBLIGATIONS
(Cost $14,036,588)										13,205,789

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

		Shares		Value
EQUITY INTEREST (0.32%)^(m)
ENERGY: OIL & GAS (0.32%)
Bruin Blocker LLC^(d)(h)	United States		27,864	$	–
PureWest LLC Common, Class A	United States		72,777		2,083,242
					2,083,242
HOTEL, GAMING & LEISURE (0.00%)^(h)
Cineworld Group PLC Warrant, Strike Price $41.49	United States		84,898		2,965

TRANSPORTATION: CONSUMER (0.00%)^(d)(h)
Bahia De Las Isletas A2	Spain		1,696		–
Bahia De Las Isletas A3	Spain		294		–
Bahia De Las Isletas B2	Spain		2,162		–
Bahia De Las Isletas B3	Spain		375		–
					–
TOTAL EQUITY INTEREST
(Cost $38,001)					2,086,207

	7-Day Yield			Shares		Value (Note 2)(a)
SHORT TERM INVESTMENT (6.28%)
Goldman Sachs Financial Square Government Fund		5.01	%		41,729,489		41,729,489

TOTAL SHORT TERM INVESTMENT
(Cost $41,729,489)							41,729,489

TOTAL INVESTMENTS (135.95%)
(Cost $906,944,441)						$	902,755,823

Liabilities in Excess of Other Assets (-35.95%)							(238,724,594	)
NET ASSETS (100.00%)						$	664,031,229

Reference Rates:

3M US L - 3 Month US LIBOR as of June 30, 2023 was 5.55%

3M EUR L - 3 Month EURIBOR as of June 30, 2023 was 3.58%

6M EUR L - 6 Month EURIBOR as of June 30, 2023 was 3.90%

1M US SOFR – 1 Month US SOFR as of June 30, 2023 was 5.14%

3M US SOFR – 3 Month US SOFR as of June 30, 2023 was 5.27%

3M SONIA - 3 Month SONIA as of June 30, 2023 was 4.38%

6M SONIA - 6 Month SONIA as of June 30, 2023 was 5.67%

5Y US T - 5 Year US Treasury rate as of June 30, 2023 was 4.13%

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

^(a)

Investment holdings denominated in foreign currencies are converted to U.S. Dollars using period end spot rates.

^(b)

Floating or variable rate security. The reference rate is described above. The rate in effect as of June 30, 2023 is based on the reference rate plus the displayed spread as of the security's last reset date.

^(c)

“Bank Loans” are senior, secured loans made to companies whose debt is below investment grade as well as investments with similar economic characteristics. Senior Loans typically hold a first lien priority and, unless otherwise indicated, are required to pay interest at floating rates that are periodically reset by reference to a base lending rate plus a spread. In some instances, the rates shown represent the weighted average rate as of June 30, 2023. Senior Loans are generally not registered under the Securities Act of 1933 (the “1933 Act”) and often incorporate certain restrictions on resale and cannot be sold publicly. Senior Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturity.

^(d)

Security is classified as Level 3 in the Fund's fair value hierarchy (see Note 2).

^(e)

Security or portion thereof pledge as collateral under the secured revolving credit facility entered into by CRDTX SPV I, LLC and Citibank N.A.

^(f)

Investment was not funded as of June 30, 2023. The Fund had $39,493,958 at par value in unfunded commitments pursuant to Delayed Draw Term Loan facilities and unused Revolver capacities. The Consolidated Schedule of Investments records each of these investments as fully funded. A corresponding payable for investments purchased has also been recorded which represents the actual unfunded amount on the balance sheet date.

Unfunded Security	Total revolving and delayed draw loan commitments		Less: drawn commitments		Total undrawn commitments
ABG Intermediate Holdings 2, First Lien Delayed Draw Term Loan	$	1,160,494	$	–	$	1,160,494
Access Group PIK, First Lien Delayed Draw Term Loan		2,612,395		2,294,889		317,506
Advarra Holdings, Inc., First Lien Delayed Draw Term Loan		1,243,180		–		1,243,180
Altern Marketing Revolver, First Lien Term Loan		1,134,454		551,345		583,109
Anaplan Inc., Revolver, First Lien Term Loan		582,452		–		582,452
AthenaHealth Group, Inc., First Lien Delayed Draw Term Loan		1,149,753		–		1,149,753
Avalara Inc., Revolver, First Lien Term Loan		1,818,182		–		1,818,182
Channelside Delayed Draw, First Lien Term Loan		414,667		–		414,667
Channelside Revolver, First Lien Term Loan		333,333		–		333,333
Coretrust, First Lien Delayed Draw Term Loan		789,474		–		789,474
Coretrust, First Lien Revolver Loan Term Loan		789,474		–		789,474
Coupa Holdings LLC, Delayed Draw, First Lien Term Loan		539,886		–		539,886
Coupa Holdings LLC, Revolver, First Lien Term Loan		413,386		–		413,386
Keystone Acquisition Revolver, First Lien Term Loan		1,000,000		–		1,000,000
NCL Corporation Ltd., Backstop Notes Bridge, First Lien Term Loan		2,080,000		–		2,080,000
NCL Corporation Ltd., First Lien Term Loan B		3,460,000		–		3,460,000
Paisley Bidco Limited, Delayed Draw, First Lien Term Loan		9,525,019		2,806,479		6,718,540
Planet US Buyer LLC, Revolver, First Lien Term Loan		518,519		–		518,519
Project Antelope B2 Delayed Draw, First Lien Term Loan		574,700		–		574,700
Revlon Revolver, First Lien Term Loan		10,000,000		2,830,769		7,169,231
Ruler BidCo Delayed Draw, First Lien Term Loan		1,711,006		–		1,711,006
Valor, Inc., First Lien Delayed Draw Term Loan		1,909,605		999,930		909,675
Zendesk Delayed Draw, First Lien Term Loan		3,695,652		–		3,695,652
Zendesk Revolver, First Lien Term Loan		1,521,739		–		1,521,739
Total	$	48,977,370	$	9,483,412	$	39,493,958

^(g)

Paid in kind security which may pay interest in additional par.

^(h)

Non-income producing security.

⁽ⁱ⁾

See Note 2 regarding defaulted securities.

^(j)

Fixed rate security.

^(k)

Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act") and Regulation S of the Securities Act. These securities may be sold in the ordinary course of business in transactions exempt from registration normally to qualified institutional buyers. As of June 30, 2023, the aggregate market value of such securities was $212,886,356, representing 32.06% of net assets.

^(l)

CLO subordinated notes, income notes, and Class M notes are considered CLO equity positions. CLO equity positions are entitled to recurring distributions which are generally equal to the remaining cash flow of payments made by underlying securities less contractual payments to debt holders and fund expenses.

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2023 (Unaudited)

^(m)

Securities may be deemed to be “restricted securities” under the Securities Act. As of June 30, 2023, the restricted securities were as follows:

Restricted

Acquisition
Date

Cost

Value
June 30, 2023

Value as
Percentage of Net
Assets Applicable
to Common
Stockholders
June 30, 2023

Bahia De Las Isletas A2

02/17/2022

–

Bahia De Las Isletas A3

02/17/2022

16,700

–

Bahia De Las Isletas B2

02/17/2022

–

Bahia De Las Isletas B3

02/17/2022

21,301

–

Bruin Blocker LLC

08/31/2020

–

Cineworld Group PLC Warrant

11/23/2020

–

2,965

–

PureWest LLC Common, Class A

09/28/2020

–

2,083,242

0.32

Total

38,001

2,086,207

0.32

Common Abbreviations:

B.V. - Dutch version of a private limited liability company

CLO - Collateralized Loan Obligation

Co. - Company

EUR L or EURIBOR - Euro Interbank Offered Rate

GmbH - German Company with limited liability

L or LIBOR - London Interbank Offered Rate

LLC - Limited Liability Company

LLLP - Limited Liability Limited Partnership

LP - Limited Partnership

Ltd - Limited Company

PIK - Payment in Kind

PLC - Public Limited Company

Reg S - Regulation S

S.A. - Société Anonyme

SAS - Simplified joint-stock company

SARL - Société A Responsabilité Limitée

SONIA - Sterling Overnight Index Average

SOFR - Secured Overnight Financing Rate

OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS

Counterparty	Settlement Date	Fund Receiving		Value		Fund Delivering		Value		Unrealized Appreciation/ (Depreciation)
Bank of New York Mellon	09/20/23		USD		43,977,432		EUR		43,869,803	$	107,629
Bank of New York Mellon	09/20/23		USD		26,072,489		GBP		25,938,918		133,571
										$	241,200
Bank of New York Mellon	09/20/23		USD		9,469,687		GBP		9,496,540	$	(26,853	)
Bank of New York Mellon	09/20/23		USD		30,475,112		EUR		30,645,105		(169,993	)
										$	(196,846	)

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Statement
of Assets and Liabilities

June 30, 2023 (Unaudited)

ASSETS
Investments, at fair value (Cost $865,214,953)	$	861,026,334
Short term investments (Cost $41,729,489)		41,729,489
Foreign currency, at value (Cost $4,666,795)		4,649,339
Receivable for investments sold		32,028,847
Receivable for shares sold		11,285,682
Interest receivable		7,584,682
Unamortized debt issuance costs (Note 7)		1,302,000
Prepaid expenses and other assets		827,590
Unrealized appreciation on forward foreign currency contracts (Note 3)		241,200
Total Assets		960,675,163
LIABILITIES
Payable for lines of credit (Note 7)		188,000,000
Payable for investments purchased		90,502,328
Payable for distributions to shareholders		13,838,274
Payable for lines of credit interest (Note 7)		2,766,626
Payable for administration fees (Note 4)		445,483
Payable for custody fees		219,710
Unrealized depreciation on forward foreign currency contracts (Note 3)		196,846
Payable for investment advisory fees (Note 4)		195,664
Payable for credit facility unfunded commitment fee (Note 7)		147,547
Payable for audit and tax fees		125,600
Payable for credit facility fees (Note 7)		59,839
Payable for distribution fees (Note 4)		54,545
Payable for compliance service fees (Note 4)		46,333
Payable for shareholder servicing fees (Note 4)		34,476
Payable for printing fees		8,677
Payable for trustees' fees (Note 4)		1,986
Total Liabilities		296,643,934
NET ASSETS	$	664,031,229
NET ASSETS CONSIST OF
Paid-in capital	$	739,142,572
Total accumulated deficit		(75,111,343	)
NET ASSETS	$	664,031,229

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Consolidated Statement
of Assets and Liabilities

June 30, 2023 (Unaudited)

PRICING OF SHARES
Class A:
Net asset value	$	21.53
Net assets	$	73,291,627
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		3,404,655
Maximum offering price per share ((NAV/0.9425), based on maximum sales charge of 5.75% of the offering price)	$	22.84
Class C:
Net asset value and maximum offering price	$	21.52
Net assets	$	86,242,117
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		4,006,961
Class I:
Net asset value and maximum offering price	$	21.52
Net assets	$	475,700,440
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		22,101,812
Class M:
Net asset value and maximum offering price	$	21.53
Net assets	$	95,388
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		4,431
Class L:
Net asset value	$	21.52
Net assets	$	13,997,036
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		650,526
Maximum offering price per share ((NAV/0.9575), based on maximum sales charge of 4.25% of the offering price)	$	22.48
Class F:
Net asset value and maximum offering price	$	21.53
Net assets	$	14,704,621
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)		683,098

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Statement of Operations

	For the Six Months Ended June 30, 2023 (Unaudited)
INVESTMENT INCOME
Interest income	$	38,225,869
Dividend Income	$	623,073
Total Investment Income		38,848,942

EXPENSES
Investment advisory fees (Note 4)		4,473,183
Administration fees (Note 4)		261,878
Transfer agency fees (Note 4)		155,634
Shareholder servicing fees (Note 4)
Class A		79,884
Class C		100,301
Class L		15,022
Distribution fees (Note 4)
Class C		300,903
Class M		(676	)
Class L		14,922
Credit facility interest expense (Note 7)		7,001,794
Legal fees		321,495
Credit facility unfunded commitment fee (Note 7)		214,072
Amortization of debt issuance costs (Note 7)		189,201
Reports to shareholders and printing fees		161,865
Audit and tax fees		132,098
Compliance service fees (Note 4)		131,843
Insurance fees		130,622
Trustees' fees (Note 4)		93,861
Income tax expense		56,300
Credit facility fees (Note 7)		36,996
Custody fees		33,711
State registration fees		30,135
Other expenses		279,603
Total Expenses		14,214,647
Fees waived/expenses reimbursed by Adviser (Note 4)		(727,984	)
Net Expenses		13,486,663
Net Investment Income		25,362,279
NET REALIZED LOSS AND UNREALIZED APPRECIATION ON INVESTMENTS, FORWARD FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
Net realized loss on investments		(9,630,683	)
Net realized loss on forward foreign currency transactions		(1,320,817	)
Net realized gain on foreign currency translation		862,047
Net realized loss		(10,089,453	)
Net change in unrealized appreciation on investments		31,935,804
Net change in unrealized depreciation on forward foreign currency transactions		(241,772	)
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies		(638,659	)
Net change in unrealized appreciation		31,055,373
NET REALIZED LOSS AND UNREALIZED APPRECIATION ON INVESTMENTS, FORWARD FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS OF ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES		20,965,920
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	46,328,199

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Consolidated Statements
of Changes in Net Assets

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022
OPERATIONS:
Net investment income	$	25,362,279		$	38,622,794
Net realized loss		(10,089,453	)		(50,505,844	)
Net change in unrealized appreciation/(depreciation)		31,055,373			(43,878,888	)
Net Increase/(Decrease) in Net Assets Resulting from Operations		46,328,199			(55,761,938	)
DISTRIBUTIONS TO SHAREHOLDERS:
Class A
From distributable earnings		(2,852,331	)		(4,392,503	)
Class C
From distributable earnings		(3,177,760	)		(5,263,453	)
Class I
From distributable earnings		(18,864,100	)		(27,621,960	)
Class M
From distributable earnings		(4,554	)		(15,213	)
Class L
From distributable earnings		(543,091	)		(870,816	)
Class F
From distributable earnings		(888,869	)		(1,369,818	)
Total Distributions to Shareholders		(26,330,705	)		(39,533,763	)
BENEFICIAL INTEREST TRANSACTIONS, IN DOLLARS:
Class A
Shares sold		12,384,858			12,818,961
Distributions reinvested		1,309,929			2,186,960
Shares redeemed (Note 8)		(3,368,650	)		(13,808,534	)
Exchanged out		(735,929	)		(1,224,719	)
Class C
Shares sold		11,997,776			17,249,489
Distributions reinvested		1,379,071			2,325,849
Shares redeemed (Note 8)		(4,027,268	)		(5,403,887	)
Exchanged out		(2,883,082	)		(2,148,188	)
Class I
Shares sold		108,871,249			123,386,368
Distributions reinvested		8,890,193			12,703,107
Shares redeemed (Note 8)		(51,671,120	)		(123,507,966	)
Exchanged in		3,619,011			3,425,049
Class M
Shares sold		10,000			–
Shares redeemed (Note 8)		(129,724	)		–
Class L
Shares sold		1,591,426			539,865
Distributions reinvested		283,920			478,244
Shares redeemed (Note 8)		(496,762	)		(401,199	)
Exchanged out		–			(30,049	)
Class F
Distributions reinvested		129,059			145,121
Shares redeemed (Note 8)		(2,754,086	)		(1,579,776	)
Exchanged out		–			(22,093	)
Net Increase in Net Assets Derived from Beneficial Interest Transactions		84,399,871			27,132,602
Net increase/(decrease) in net assets		104,397,365			(68,163,099	)
NET ASSETS:
Beginning of year		559,633,864			627,796,963
End of year	$	664,031,229		$	559,633,864

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Statements
of Changes in Net Assets

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022
Other Information
BENEFICIAL INTEREST TRANSACTIONS, IN SHARES:
Class A
Beginning shares		2,953,556			2,940,435
Shares sold		581,553			575,620
Distributions reinvested		61,212			101,850
Shares redeemed (Note 8)		(157,127	)		(607,302	)
Exchanged out		(34,539	)		(57,047	)
Net increase in shares outstanding		451,099			13,121
Ending shares		3,404,655			2,953,556
Class C
Beginning shares		3,702,725			3,164,548
Shares sold		563,396			770,977
Distributions reinvested		64,453			108,768
Shares redeemed (Note 8)		(187,954	)		(243,665	)
Exchanged out		(135,659	)		(97,903	)
Net increase in shares outstanding		304,236			538,177
Ending shares		4,006,961			3,702,725
Class I
Beginning shares		18,823,239			18,051,828
Shares sold		5,106,745			5,493,448
Distributions reinvested		415,499			593,328
Shares redeemed (Note 8)		(2,413,867	)		(5,472,599	)
Exchanged in		170,196			157,234
Net increase in shares outstanding		3,278,573			771,411
Ending shares		22,101,812			18,823,239
Class M
Beginning shares		9,999			9,999
Shares sold		468			–
Shares redeemed (Note 8)		(6,036	)		–
Net decrease in shares outstanding		(5,568	)		–
Ending shares		4,431			9,999
Class L
Beginning shares		585,707			559,179
Shares sold		74,687			22,757
Distributions reinvested		13,255			22,303
Shares redeemed (Note 8)		(23,123	)		(17,308	)
Exchanged out		–			(1,224	)
Net increase in shares outstanding		64,819			26,528
Ending shares		650,526			585,707
Class F
Beginning shares		805,274			869,758
Distributions reinvested		6,032			6,818
Shares redeemed (Note 8)		(128,208	)		(70,263	)
Exchanged out		–			(1,039	)
Net decrease in shares outstanding		(122,176	)		(64,484	)
Ending shares		683,098			805,274

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Consolidated Statement of Cash Flows

	For the Six Months Ended June 30, 2023 (Unaudited)
Operating Activities:
Net increase in net assets resulting from operations	$	46,328,199
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Purchase of investments		(428,472,337	)
Proceeds from sale of investments		358,551,878
Proceeds from securities sold short transactions		(19,256,239	)
Net realized loss on investments		9,630,683
Net realized gain on foreign currency translation		(862,047	)
Net change in unrealized appreciation on investments		(31,935,804	)
Net unrealized depreciation on forward foreign currency contracts		241,772
Net change in unrealized depreciation on translation of assets and liabilities denominated in foreign currencies		638,659
Amortization and accretion of discounts and premiums, net		(2,354,292	)
Change in operating assets and liabilities:
Interest receivables		(763,438	)
Receivable due from adviser		69,097
Prepaid expenses and other assets		(591,763	)
Payable for investment advisory fees		195,664
Payable for distribution fees		2,087
Payable for shareholder servicing fees		1,803
Payable for transfer agency fees		(4,464	)
Payable for lines of credit interest		135,341
Payable for administration fees		287,802
Payable for trustees' fees		1,986
Payable for audit and tax fees		(6,651	)
Payable for custody fees		33,711
Payable for compliance service fees		36,072
Payable for printing fees		(77,998	)
Payable for credit facility fees		19,552
Payable for credit facility unfunded commitment fee		107,192
Accrued expenses and other liabilities		(120,753	)
Net cash used in operating activities		(68,164,288	)

Financing Activities:
Net cash paid on lines of credit		(33,500,000	)
Proceeds from shares sold		129,344,669
Cost of shares redeemed		(62,447,610	)
Distributions paid to shareholders		(12,436,161	)
Debt issuance costs		(621,272	)
Amortization of debt issuance costs		189,201
Net cash provided by financing activities		20,528,827
Net Increase/Decrease in cash during the year		(47,635,461	)
Effect of foreign exchange rate changes on cash		223,388

Cash and cash equivalents, beginning of period	$	52,061,412
Cash and cash equivalents, end of period	$	4,649,339

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Non-cash financing activities not included herein consist of reinvestment of distributions of:	$	11,192,172
Cash paid during the period for interest from bank borrowing:	$	6,866,454
Cash paid for taxes	$	157,135

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated Statement of Cash Flows

	For the Six Months Ended June 30, 2023 (Unaudited)
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES
Cash		52,061,412
Cash collateral for credit facility		–
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES
Cash		4,649,339
Cash collateral for credit facility		41,729,489

See Notes to Consolidated Financial Statements.

34	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class A

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020			For the Year Ended December 31, 2019			For the Year Ended December 31, 2018
Net asset value, beginning of year	$	20.82		$	24.53		$	24.06		$	24.89		$	24.01		$	25.30

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		0.88			1.49			1.53			1.28			1.59			1.52
Net realized and unrealized gain/(loss)		0.75			(3.68	)		0.47			(0.65	)		1.01			(1.27	)
Total from investment operations		1.63			(2.19	)		2.00			0.63			2.60			0.25

DISTRIBUTIONS:
From net investment income^(b)		(0.92	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)
Total distributions		(0.92	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)

Net increase/(decrease) in net asset value		0.71			(3.71	)		0.47			(0.83	)		0.88			(1.29	)
Net asset value, end of period	$	21.53		$	20.82		$	24.53		$	24.06		$	24.89		$	24.01
TOTAL RETURN^(c)		7.89	%		(8.93	)%		8.49	%		3.16	%		11.04	%		0.93	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)	$	73,292		$	61,500		$	72,120		$	81,766		$	65,930		$	31,350
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		4.83	%^(d)		3.75	%		3.10	%		2.79	%		2.97	%		3.32	%
Ratio of expenses to average net assets including fee waivers and reimbursements		4.67	%^(d)		2.32	%^(e)		1.72	%^(e)		1.25	%^(e)		0.54	%^(e)		0	%^(f)
Ratio of net investment income to average net assets		8.34	%^(d)		6.69	%		6.26	%		5.59	%		6.45	%		6.09	%

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		2.41	%^(d)		2.64	%		2.76	%		2.79	%		2.97	%		3.32	%
Ratio of expenses to average net assets including fee waivers and reimbursements		2.25	%^(d)		1.21	%^(e)		1.38	%^(e)		1.25	%^(e)		0.54	%^(e)		0	%^(f)

Portfolio turnover rate^(g)		56	%		148	%		73	%		98	%		72	%		56	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

Total returns are for the period indicated and do not reflect the impact of the applicable sales charge. Total returns would have been lower had certain expenses not been waived or recouped by the Adviser during the year. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

^(d)

Annualized.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund – Class A

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

^(e)

For the period of January 1, 2019 to August 25, 2019 the Adviser voluntarily absorbed all of the operating expenses of the Fund. For the period of August 26, 2019 to April 30, 2021, the Adviser voluntarily absorbed operating expenses of the Fund in excess of 1.25% of net assets. For the period of May 1, 2021 to August 15, 2021, the Adviser voluntarily absorbed operating expenses of the Fund in excess of 1.375% of net assets. For the period of August 16, 2021 to March 31, 2022, the Adviser voluntarily waived or absorbed operating expenses of the Fund in excess of 1.50% of net assets. For the period April 1, 2022 to December 31, 2022, the Adviser voluntarily waived or absorbed operating expenses of the Fund in excess of 1.00% of net assets. For the period October 1, 2022 to December 31, 2022, the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.25% of net assets. In the absence of the election by the Fund's investment adviser to bear certain of the Fund's operating expenses, the ratio of expenses to average net assets including fee waivers and reimbursements would have been higher.

^(f)

The Adviser voluntarily absorbed all of the operating expenses of the Fund during the period. In the absence of the election by the Fund's investment adviser to bear all of the Fund's operating expenses, the ratio of expenses to average net assets including fee waivers and reimbursements would have been higher.

^(g)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

36	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class C

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020			For the Year Ended December 31, 2019			For the Year Ended December 31, 2018
Net asset value, beginning of year	$	20.82		$	24.53		$	24.06		$	24.89		$	24.01		$	25.30

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		0.80			1.49			1.53			1.28			1.58			1.52
Net realized and unrealized gain/(loss)		0.74			(3.68	)		0.47			(0.65	)		1.02			(1.27	)
Total from investment operations		1.54			(2.19	)		2.00			0.63			2.60			0.25

DISTRIBUTIONS:
From net investment income^(b)		(0.84	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)
Total distributions		(0.84	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)

Net increase/(decrease) in net asset value		0.70			(3.71	)		0.47			(0.83	)		0.88			(1.29	)
Net asset value, end of period	$	21.52		$	20.82		$	24.53		$	24.06		$	24.89		$	24.01
TOTAL RETURN^(c)		7.44	%		(8.93	)%		8.49	%		3.16	%		11.04	%		0.94	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)	$	86,242		$	77,088		$	77,619		$	62,889		$	49,083		$	18,091
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		5.59	%^(d)		4.50	%		3.84	%		3.54	%		3.73	%		4.07	%
Ratio of expenses to average net assets including fee waivers and reimbursements		5.42	%^(d)		2.32	%^(e)		1.73	%^(e)		1.25	%^(e)		0.56	%^(e)		0	%^(f)
Ratio of net investment income to average net assets		7.59	%^(d)		6.71	%		6.25	%		5.59	%		6.41	%		6.12	%

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		3.17	%^(d)		3.39	%		3.50	%		3.54	%		3.73	%		4.07	%
Ratio of expenses to average net assets including fee waivers and reimbursements		3.00	%^(d)		1.21	%^(e)		1.39	%^(e)		1.25	%^(e)		0.56	%^(e)		0	%^(f)

Portfolio turnover rate^(g)		56	%		148	%		73	%		98	%		72	%		56	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

^(d)

Annualized.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund – Class C

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

^(e)

^(f)

^(g)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

38	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class I

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020			For the Year Ended December 31, 2019			For the Year Ended December 31, 2018
Net asset value, beginning of year	$	20.82		$	24.53		$	24.06		$	24.89		$	24.01		$	25.30

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		0.91			1.49			1.52			1.28			1.59			1.52
Net realized and unrealized gain/(loss)		0.73			(3.68	)		0.49			(0.65	)		1.01			(1.27	)
Total from investment operations		1.64			(2.19	)		2.01			0.63			2.60			0.25

DISTRIBUTIONS:
From net investment income^(b)		(0.94	)		(1.52	)		(1.54	)		(1.46	)		(1.72	)		(1.54	)
Total distributions		(0.94	)		(1.52	)		(1.54	)		(1.46	)		(1.72	)		(1.54	)

Net increase/(decrease) in net asset value		0.70			(3.71	)		0.47			(0.83	)		0.88			(1.29	)
Net asset value, end of period	$	21.52		$	20.82		$	24.53		$	24.06		$	24.89		$	24.01
TOTAL RETURN^(c)		7.97	%		(8.93	)%		8.50	%		3.16	%		11.04	%		0.95	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)	$	475,700		$	391,881		$	442,765		$	279,376		$	236,901		$	118,119
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		4.59	%^(d)		3.50	%		2.84	%		2.54	%		2.72	%		3.07	%
Ratio of expenses to average net assets including fee waivers and reimbursements		4.42	%^(d)		2.32	%^(e)		1.73	%^(e)		1.25	%^(e)		0.54	%^(e)		0	%^(f)
Ratio of net investment income to average net assets		8.59	%^(d)		6.69	%		6.24	%		5.60	%		6.44	%		6.12	%

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		2.17	%^(d)		2.39	%		2.50	%		2.54	%		2.72	%		3.07	%
Ratio of expenses to average net assets including fee waivers and reimbursements		2.00	%^(d)		1.21	%^(e)		1.39	%^(e)		1.25	%^(e)		0.54	%^(e)		0	%^(f)

Portfolio turnover rate^(g)		56	%		148	%		73	%		98	%		72	%		56	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

^(d)

Annualized.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund – Class I

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

^(e)

^(f)

^(g)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

40	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class M

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Period November 2, 2021 (Commencement of Operations) to December 31, 2021
Net asset value, beginning of year	$	20.82		$	24.53		$	24.55

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		0.82			1.49			0.23
Net realized and unrealized gain/(loss)		0.75			(3.68	)		–
Total from investment operations		1.57			(2.19	)		0.23

DISTRIBUTIONS:
From net investment income^(b)		(0.86	)		(1.52	)		(0.25	)
Total distributions		(0.86	)		(1.52	)		(0.25	)

Net increase/(decrease) in net asset value		0.71			(3.71	)		(0.02	)
Net asset value, end of year	$	21.53		$	20.82		$	24.53
TOTAL RETURN^(c)		7.62	%		(8.94	)%		0.91	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s)	$	95		$	208		$	245
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		3.39	%^(d)		3.98	%		3.57	%^(d)
Ratio of expenses to average net assets including fee waivers and reimbursements		5.17	%^(d)		2.32	%^(e)		1.85	%^(d)(e)
Ratio of net investment income to average net assets		7.74	%^(d)		6.68	%		5.82	%^(d)

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		0.97	%^(d)		2.87	%		3.22	%^(d)
Ratio of expenses to average net assets including fee waivers and reimbursements		2.75	%^(d)		1.21	%^(e)		1.50	%^(d)(e)

Portfolio turnover rate^(f)		56	%		148	%		73	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

^(d)

Annualized.

^(e)

For the period November 2, 2021 to March 31, 2022 the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.50% of net assets. For the period April 1, 2022 to September 30, 2022, the Adviser voluntarily waived or absorbed operating expenses (excluding interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses) of the Fund in excess of 1.00% of net assets. In the absence of the election by the Fund's investment adviser to bear certain of the Fund's operating expenses, the ratio of expenses to average net assets including fee waivers and reimbursements would have been higher.

^(f)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund – Class L

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020			For the Year Ended December 31, 2019			For the Year Ended December 31, 2018
Net asset value, beginning of year	$	20.81		$	24.52		$	24.05		$	24.89		$	24.01		$	25.30

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		0.85			1.49			1.53			1.28			1.57			1.53
Net realized and unrealized gain/(loss)		0.75			(3.68	)		0.47			(0.66	)		1.03			(1.28	)
Total from investment operations		1.60			(2.19	)		2.00			0.62			2.60			0.25

DISTRIBUTIONS:
From net investment income^(b)		(0.89	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)
Total distributions		(0.89	)		(1.52	)		(1.53	)		(1.46	)		(1.72	)		(1.54	)

Net increase/(decrease) in net asset value		0.71			(3.71	)		0.47			(0.84	)		0.88			(1.29	)
Net asset value, end of period	$	21.52		$	20.81		$	24.52		$	24.05		$	24.89		$	24.01
TOTAL RETURN^(c)		7.75	%		(8.95	)%		8.49	%		3.13	%		11.05	%		0.94	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)	$	13,997		$	12,190		$	13,711		$	11,606		$	5,537		$	1,831
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		5.05	%^(d)		3.98	%		3.31	%		3.05	%		3.19	%		3.45	%
Ratio of expenses to average net assets including fee waivers and reimbursements		4.92	%^(d)		2.32	%^(e)		1.73	%^(e)		1.25	%^(e)		0.59	%^(e)		0	%^(f)
Ratio of net investment income to average net assets		8.09	%^(d)		6.69	%		6.25	%		5.58	%		6.38	%		6.14	%

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		2.63	%^(d)		2.87	%		2.97	%		3.05	%		3.19	%		3.45	%
Ratio of expenses to average net assets including fee waivers and reimbursements		2.50	%^(d)		1.21	%^(e)		1.39	%^(e)		1.25	%^(e)		0.59	%^(e)		0	%^(f)

Portfolio turnover rate^(g)		56	%		148	%		73	%		98	%		72	%		56	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

^(d)

Annualized.

See Notes to Consolidated Financial Statements.

42	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class L

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

^(e)

^(f)

^(g)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund – Class F

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

	For the Six Months Ended June 30, 2023 (Unaudited)			For the Year Ended December 31, 2022			For the Year Ended December 31, 2021			For the Year Ended December 31, 2020			For the Year Ended December 31, 2019			For the Year Ended December 31, 2018
Net asset value, beginning of year	$	20.82		$	24.53		$	24.07		$	24.90		$	24.01		$	25.30

INCOME FROM INVESTMENT OPERATIONS:
Net investment income^(a)		1.21			1.61			1.53			1.28			1.63			1.50
Net realized and unrealized gain/(loss)		0.75			(3.67	)		0.46			(0.65	)		0.97			(1.26	)
Total from investment operations		1.96			(2.06	)		1.99			0.63			2.60			0.24

DISTRIBUTIONS:
From net investment income^(b)		(1.25	)		(1.65	)		(1.53	)		(1.46	)		(1.71	)		(1.53	)
Total distributions		(1.25	)		(1.65	)		(1.53	)		(1.46	)		(1.71	)		(1.53	)

Net increase/(decrease) in net asset value		0.71			(3.71	)		0.46			(0.83	)		0.89			(1.29	)
Net asset value, end of period	$	21.53		$	20.82		$	24.53		$	24.07		$	24.90		$	24.01
TOTAL RETURN^(c)		9.53	%		(8.38	)%		8.44	%		3.15	%		11.06	%		0.91	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)	$	14,705		$	16,767		$	21,337		$	23,004		$	25,965		$	26,843
Ratios to Average Net Assets (including interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		4.59	%^(d)		3.50	%		2.84	%		2.54	%		2.70	%		3.03	%
Ratio of expenses to average net assets including fee waivers and reimbursements		1.50	%^(d)		1.76	%^(f)		1.72	%^(f)		1.25	%^(f)		0.43	%^(f)		0	%^(g)
Ratio of net investment income to average net assets		11.48	%^(d)		7.24	%		6.27	%		5.60	%		6.58	%		5.99	%

Ratios to Average Net Assets (excluding interest expense)
Ratio of expenses to average net assets excluding fee waivers and reimbursements		4.59	%^(d)(e)		2.39	%		2.50	%		2.54	%		2.70	%		3.03	%
Ratio of expenses to average net assets including fee waivers and reimbursements		1.50	%^(d)(e)		0.65	%^(f)		1.38	%^(f)		1.25	%^(f)		0.43	%^(f)		0	%^(g)

Portfolio turnover rate^(h)		56	%		148	%		73	%		98	%		72	%		56	%

^(a)

Calculated using the average shares method.

^(b)

Distributions are based on a daily accrual of net investment income which will vary based on underlying investment yields and daily shares outstanding (see Note 6).

^(c)

Total returns are for the period indicated. Total returns would have been lower had certain expenses not been waived or recouped by the Adviser during the year. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

^(d)

Annualized.

^(e)

Ratio excludes expense waiver related to interest expense.

See Notes to Consolidated Financial Statements.

44	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund – Class F

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

^(f)

^(g)

^(h)

Portfolio turnover rate for periods less than one full year has not been annualized and is calculated at the Fund level.

See Notes to Consolidated Financial Statements.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Consolidated

Financial Highlights

For a Share Outstanding Throughout the Period Presented

Information about the Fund's senior securities is shown in the following table:

	For the Six Months Ended June 30, 2023 (Unaudited)		For the Year Ended December 31, 2022		For the Year Ended December 31, 2021		For the Year Ended December 31, 2020^(a)	For the Year Ended December 31, 2019^(a)	For the Year Ended December 31, 2018^(a)
Lines of Credit Total Amount Outstanding (000's)	$	188,000	$	221,500	$	133,945	N/A	N/A	N/A
Asset Coverage Per $1,000 of Lines of Credit Outstanding^(b)	$	4,532	$	3,527	$	5,691	N/A	N/A	N/A

^(a)

The Fund did not have a Line of Credit during this period.

^(b)

Calculated by subtracting the Fund’s consolidated total liabilities (excluding the indebtedness represented by the Lines of Credit) from the Fund’s total assets and dividing by the total amount outstanding on the Lines of Credit. The Asset Coverage ratio is then multiplied by $1,000 to determine the "Asset Coverage Per $1,000 of Lines of Credit Outstanding."

See Notes to Consolidated Financial Statements.

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Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

1. ORGANIZATION

Apollo Diversified Credit Fund (formerly, Griffin Institutional Access Credit Fund) (the “Fund”) is registered with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. The Fund was organized as a statutory trust on April 5, 2016 under the laws of the State of Delaware. The Fund commenced operations on April 3, 2017 and is authorized to issue an unlimited number of shares with no par value. The Fund engages in a continuous offering of shares and operates as an interval fund that offers quarterly repurchases of shares at net asset value (“NAV”). The Fund’s investment adviser is Apollo Capital Credit Adviser, LLC (formerly, Griffin Capital Credit Advisor, LLC) (the “Adviser”). The Fund's investment sub-adviser is Apollo Credit Management, LLC (the "Sub-Adviser"). Both the Adviser and Sub-Adviser are affiliates of Apollo Global Management, Inc. and its consolidated subsidiaries. Both the Adviser and Sub-Adviser are registered as investment advisers with the SEC pursuant to the provisions of the Investment Advisers Act of 1940, as amended.

The Fund’s investment objective is to generate a return comprised of both current income and capital appreciation with an emphasis on current income with low volatility and low correlation to the broader markets. The Fund pursues its investment objective through a “multi-asset” approach centered around five key strategy pillars: (1) levered performing credit, (2) dislocated credit, (3) large scale origination, (4) structured credit and (5) other private credit strategies. The levered performing credit pillar primarily pursues liquid, performing senior secured corporate credit to generate total return. The dislocated credit pillar seeks to use contingent capital to pursue “dislocated” credit opportunities (e.g., stressed, performing assets across the credit spectrum that sell-off due to technical and/or non-fundamental reasons) in between traditional, passive investment mandates and “distressed-for-control” investment mandates. The large scale origination pillar targets large corporate and sponsor-backed issuers utilizing Apollo’s proprietary sourcing channel, primarily focused on first lien and unitranche loans. The structured credit pillar seeks out high-quality structured credit opportunities of various asset types, vintages, maturities, jurisdictions and capital structure priorities, including debt and equity tranches of CLOs, CMBS, residential mortgage backed securities (“RMBS”), consumer and commercial ABS, whole loans and regulatory capital relief transactions. The other private credit strategies pillar is expected to enable agile deployment into origination and propriety sourcing channels across the balance of sector and credit asset class expertise resident within the Apollo credit platform that may not be captured by the above pillars. This may include opportunities within asset classes covered by Apollo including, but not limited to, asset backed lending, special purpose acquisition companies (“SPACs”), aviation finance and credit secondaries. The Fund will invest, under normal market conditions, at least 80% of its Managed Assets in debt securities, including, but not limited to, credit related investments such as fixed income securities (investment grade debt and high-yield-debt), floating rate securities (senior loans or structured credit) and other debt instruments and in derivatives (futures, forward contracts, foreign currency exchange contracts, call and put options, selling or purchasing credit default swaps, and total return swaps) and other instruments that have economic characteristics similar to such securities or investments.

The Fund currently offers Class A, Class C, Class I, Class L and Class M shares. Class A, Class C and Class I shares commenced operations on April 3, 2017. Class L shares commenced operations on September 5, 2017. Class F shares commenced operations on September 25, 2017 and are no longer offered except for reinvestment of dividends. Class M shares commenced operations on November 2, 2021. Class A and Class L shares are offered subject to a maximum sales charge of 5.75% and 4.25%, respectively, of their offering price. Class C, Class I, and Class M shares are offered at net asset value per share. Class C shares may be subject to a 1.00% contingent deferred sales charge on shares redeemed during the first 365 days after their purchase. Each class represents an interest in the same assets of the Fund and classes are identical except for differences in their sales charge structures and ongoing service and distribution charges. All classes of shares have equal voting privileges except that each class has exclusive voting rights with respect to its service and/or distribution plans. The Fund’s income, expenses (other than class specific service and distribution fees), and realized and unrealized gains and losses are allocated proportionately each day based upon the relative net assets of each class.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation – The following is a summary of significant accounting policies followed by the Fund in preparation of its consolidated financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Fund is considered an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

Fund Subsidiaries – During the period, certain investments of the Fund were held through wholly-owned subsidiaries. The Fund has a 100% ownership interest, consolidates, and has control over significant operating, financial, and monetary decisions of ADCF Alpine SPV, LLC (“Alpine SPV”), ADCF Zorro SPV, LLC (“Zorro SPV”), ADCF Lender, LLC (“ADCF Lender”), ADCF Mantle SPV, LLC (“Mantle SPV”), ADCF Germantown SPV, LLC ("Germantown SPV"), CRDTX SPV I, LLC (“Financing Subsidiary”), and GIACF Alternative Holdings, LLC (“Cayman SPV”) (together, the “Subsidiaries”). The primary purpose of the Subsidiaries is to facilitate the holding of certain investments of the Fund. For purposes of the Fund’s investment restrictions, guidelines and limitations, the Fund will aggregate direct investments with investment exposure provided by its Subsidiaries. The financial results of the Subsidiaries are included in the consolidated financial statements and financial highlights of the Fund and all investments held by the Subsidiaries are disclosed in the Consolidated Schedule of Investments. All accounts and transactions between the Fund and its Subsidiaries have been eliminated in consolidation.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Alpine SPV is a Limited Liability Company formed in accordance with the laws of the State of Delaware on June 3, 2022. The Fund is the managing and sole member of Alpine SPV pursuant to a limited liability company operating agreement. Alpine SPV, in accordance with the laws of the State of Delaware, was dissolved on March 15, 2023.

Zorro SPV is a Limited Liability Company formed in accordance with the laws of the State of Delaware on July 25, 2022. The Fund is the managing and sole member of Zorro SPV pursuant to a limited liability company operating agreement. Zorro SPV, in accordance with the laws of the State of Delaware, was dissolved on March 15, 2023.

ADCF Lender is a Limited Liability Company formed in accordance with the laws of the State of Delaware on July 28, 2022. The Fund is the managing and sole member of ADCF Lender pursuant to a limited liability company operating agreement.

Mantle SPV is a Limited Liability Company formed in accordance with the laws of the State of Delaware on December 14, 2022. The Fund is the managing and sole member of Mantle SPV pursuant to a limited liability company operating agreement. Mantle SPV, in accordance with the laws of the State of Delaware, was dissolved on April 27, 2023.

Germantown SPV is a Limited Liability Company formed in accordance with the laws of the State of Delaware on May 16, 2023. The Fund is the managing and sole member of Germantown SPV pursuant to a limited liability company operating agreement.

The Financing Subsidiary, a Delaware Limited Liability Company, was formed on November 27, 2018. The Fund and CRDTX SPV I, LLC, are party to a secured revolving credit facility with Citibank, N.A. The Fund is the managing and sole member of CRDTX SPV I, LLC pursuant to a limited liability company operating agreement and the Fund will remain the sole member and will continue to wholly own and control CRDTX SPV I, LLC. Assets pledged as collateral by CRDTX SPV I, LLC under the secured revolving credit facility with Citibank, N.A. are disclosed in the Consolidated Schedule of investments.

The Cayman SPV, a Cayman Islands exempted company, was formed on September 18, 2018. The Fund is the managing and sole member of the Cayman SPV pursuant to a limited liability company operating agreement. The Cayman SPV has received an undertaking from the Government of the Cayman Islands exempting it from all local income, profits and capital gains taxes. No such taxes are levied in the Cayman Islands at the present time. For U.S. income tax purposes, the Cayman SPV is a Controlled Foreign Corporation, which generates and is allocated no income that is considered effectively connected with U.S. trade of business and, as such, is not subject to U.S. income tax. However, as a wholly-owned Controlled Foreign Corporation, the Cayman SPV’s net income and capital gain, to the extent of its earnings and profits, will be included each year in the Fund’s investment company taxable income.

For purposes of the Fund’s investment restrictions, guidelines and limitations, the Fund will aggregate direct investments with investment exposure provided by its Subsidiaries.

Fund Valuation – The net asset value per share for the Fund is determined following the close of regular trading on the New York Stock Exchange (“NYSE”), generally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. Each of the Fund’s share classes will be offered at net asset value plus the applicable sales load, if any. The Fund’s net asset value per share is calculated, on a class-specific basis, by dividing the value of the Fund’s net assets by the total number of shares outstanding. The Fund’s net asset value per share is calculated, on a class-specific basis, by dividing the value of the Fund’s total assets (the value of the securities the Fund holds plus cash or other assets, including interest accrued but not yet received), less accrued expenses and other liabilities of the Fund, by the total number of shares outstanding.

Security Valuation – The Fund’s Board has adopted procedures pursuant to which the Fund will value its investments (the “Valuation Policy and Procedures”). In accordance with the Valuation Policy and Procedures, the Fund’s portfolio investments for which market quotations are readily available are valued at market value. Investments for which market quotations are not readily available or are deemed to be unreliable are valued at fair value as determined in good faith pursuant to Rule 2a-5 under the 1940 Act. As permitted by Rule 2a-5 under the 1940 Act, the Board has designated the Adviser as the Fund’s valuation designee (“Valuation Designee”) to perform fair value determinations relating to all portfolio investments. The Adviser carries out its designated responsibilities as Valuation Designee through various teams pursuant to the Valuation Policy and Procedures which govern the Valuation Designee’s selection and application of methodologies and independent pricing services for determining and calculating the fair value of portfolio investments. The Valuation Designee will fair value portfolio investments utilizing inputs from various external and internal sources including, but not limited to, independent pricing services, dealer quotation reporting systems, independent third-party valuation firms and proprietary models and information. When determining the fair value of an investment, one or more fair value methodologies may be used. Fair value determinations will be based upon all available factors that the Valuation Designee deems relevant at the time of the determination. Fair valuation involves subjective judgments, and it is possible that the fair value determined for a security may differ materially from the value that could be realized upon the sale of the security.

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Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Forward foreign currency exchange contracts are typically valued at their quoted daily prices obtained from an independent pricing service. The aggregate settlement values and notional amounts of the forward foreign currency exchange contracts and total return swaps will not be recorded in the Consolidated Statement of Assets and Liabilities. However, fluctuations in the value of the forward foreign currency exchange contracts and total return swaps will be recorded in the Consolidated Statement of Assets and Liabilities as an asset or liability and in the Consolidated Statement of Operations as unrealized appreciation or depreciation until terminated.

Fair Value Measurements – In accordance with ASC Topic 820 – Fair Value Measurement and Disclosures, a three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available. In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Fund discloses fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value, as follows:

Level 1 –

Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;

Level 2 –

Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability at the measurement date; and

Level 3 –

Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

An investment level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The valuation techniques used by the Fund to measure fair value during the six months ended June 30, 2023 maximized the use of observable inputs and minimized the use of unobservable inputs.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities. The following is a summary of the inputs used in valuing the Fund’s investments as of June 30, 2023:

Investments in Securities at Value	Level 1 - Quoted Prices		Level 2 - Other Significant Observable Inputs			Level 3 - Significant Unobservable Inputs		Total
Bank Loans	$	–	$	295,798,468		$	276,670,988	$	572,469,456
Corporate Bonds		–		251,211,864			17,114,866		268,326,730
Convertible Corporate Bonds		–		–			4,938,152		4,938,152
Collateralized Loan Obligations		–		13,205,789			–		13,205,789
Equity Interest		–		2,086,207			–		2,086,207
Short Term Investment		41,729,489		–			–		41,729,489
Total	$	41,729,489	$	562,302,328		$	298,724,006	$	902,755,823
Other Financial Instruments^*
Assets:
Forward Foreign Currency Contracts	$	–	$	241,200		$	–	$	241,200
Liabilities:
Forward Foreign Currency Contracts		–		(196,846	)		–		(196,846	)
Total	$	–	$	44,354		$	–	$	44,354

^*	Other financial instruments are derivative instruments reflected in the Consolidated Schedule of Investments. The derivatives shown in this table are reported at their unrealized appreciation/ (depreciation) at measurement date, which represents the change in the contracts' value.

The changes of fair value of investments for which the Fund has used Level 3 inputs to determine the fair value are as follows:

	Bank Loans			Corporate Bonds		Equity Interest			Convertible Corporate Bonds			Total
Balance as of December 31, 2022	$	216,629,877		$	–	$	5,132		$	4,359,597		$	220,994,606
Accrued discount/ premium		251,903			1,950		–			(17,272	)		236,581
Realized Gain/(Loss)		188,390			–		–			–			188,390
Change in Unrealized Appreciation/(Depreciation)		2,966,479			247,516		(2,167	)		595,827			3,807,655
Purchases		133,853,549			16,865,400		–			–			150,718,949
Sales Proceeds		(76,998,700	)		–		–			–			(76,998,700	)
Transfer into Level 3^(a)		–			–		–			–			–
Transfer out of Level 3^(a)		(220,510	)		–		(2,965	)		–			(223,475	)
Balance as of June 30, 2023	$	276,670,988		$	17,114,866	$	–		$	4,938,152		$	298,724,006
Net change in unrealized appreciation/(depreciation) included in the Statements of Operations attributable to Level 3 investments held at June 30, 2023	$	3,129,069		$	247,516	$	–		$	595,827		$	3,972,412

^(a)

Assets were transferred from Level 2 to Level 3 or from Level 3 to Level 2 as a result of changes in levels of liquid market observability when subject to various criteria as discussed above.

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Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

The table below provides additional information about the Level 3 Fair Value Measurements as of June 30, 2023:

Quantitative Information about Level 3 Fair Value Measurements

Asset Class	Fair Value			Valuation Technique	Unobservable Inputs	Minimum			Maximum			Weighted Average
Bank Loans	$	220,910,378		Discounted Cash Flow	Discount Rate		7.58	%		15.42	%		10.75	%
Bank Loans		55,760,610	^(a)	Transaction Approach	Cost^(b)	$	97.00		$	100.00		$	97.99
Bank Loans		–		Recoverability	Estimated Proceeds	$	–		$	–		$	–
Corporate Bond		13,440,000	^(a)	Transaction Approach	Cost^(b)	$	96.00		$	96.00		$	96.00
Convertible
Corporate Bond		4,938,152		Discounted Cash Flow	Discount Rate		13.40	%		13.40	%		13.40	%
				Option Model	Volatility		85.00	%		85.00	%		85.00	%
Corporate Bond		3,674,866		Discounted Cash Flow	Discount Rate		7.49	%		7.49	%		7.49	%
Equity Interests		–		Recoverability	Estimated Proceeds	$	–		$	–		$	–
Total	$	298,724,006

Unobservable Input	Impact to Value if Input Increases	Impact to Value if Input Decreases
Discount Rate	Decrease	Increase
Volatility	Increase	Decrease
Estimated Proceeds	Increase	Decrease

^(a)

The Fund utilized a recent transaction, specifically purchase price, to fair value this security

^(b)

The Fund did not develop the unobservable inputs for the determination of fair value (examples include broker quotations from pricing services and prior or recent transactions)

The Fund used valuation techniques consistent with the income approach and market approach to determine the fair value of certain Level 3 assets as of June 30, 2023. The valuation techniques utilized by the Fund included discounted cash flows analysis, recoverability, and the option model. The Fund utilized the discounted cash flow analysis to measure fair value of certain of the Fund’s equity and debt investments. The discounted cash flows analysis is a technique whereby future expected cash flows of the underlying investment are discounted to determine a present value using a discount rate. The significant unobservable input used in the discounted cash flows analysis is the discount rate. The Fund also utilized a recoverability approach to measure fair value of certain of the Fund’s equity and debt investments, specifically a liquidation analysis. There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of a company’s assets. The significant unobservable input used in the valuation model was estimated proceeds. For certain investments, the Fund used an option model, of which the applicable method is the Black- Scholes Option Pricing Method (“BSM”), to perform valuations. The BSM is a model of price variation over time of financial instruments, such as equity, that is used to determine the price of call or put options. Various inputs are required but the primary unobservable input into the BSM model is the underlying asset volatility.

Generally, new investments not valued by an independent pricing service are held at purchase price initially until the investment has been held by the Fund for a full quarter. Absent a material change to the applicable investment, the Valuation Designee subsequently determines the application of a fair value methodology at the next valuation date.

The carrying and fair value of the Fund's debt obligation as of June 30, 2023 for which the Fund has determined would be categorized as Level 2 in the fair value hierarchy was $188,000,000.

Securities Transactions, Revenue Recognition and Expenses – The Fund records its investment transactions on a trade date basis. The Fund measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, using the specified identification method. Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Discount and premium to par value on investments acquired are accreted and amortized, respectively, into interest income over the life of the respective investment using the effective interest method. Loan origination fees, original issue discount and market discount or premium are capitalized and amortized against or accreted into interest income using the effective interest method or straight-line method, as applicable. For the Fund’s investments in revolving bank loans, the cost basis of the investment purchased is adjusted for the cash received for the discount on the total balance committed. The fair value is also adjusted for price appreciation or depreciation on the unfunded portion. Upon prepayment of a loan or debt security, any prepayment premium is recorded as interest income.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Dividend income on preferred equity investments is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity investments is recorded on the record date for private portfolio companies and on the ex-dividend date for publicly traded portfolio companies. Distributions received from a limited liability company or limited partnership investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital.

Income from securitization vehicles and investments in the equity class securities of CLO vehicles (typically income notes or subordinated notes) is recorded daily using the effective interest method in accordance with the provisions of ASC 325-40, Beneficial Interests in Securitized Financial Assets, based upon a calculation of the effective yield to the expected redemption date based on an estimate of future cash flows, including those CLO equity investments that have not made their inaugural distribution for the relevant period end. The Fund monitors the expected residual payments, and the effective yield is determined and updated quarterly.

Certain investments may have contractual payment-in-kind (“PIK”) interest or dividends. PIK represents accrued interest or accumulated dividends that are added to the loan principal of the investment on the respective interest or dividend payment dates rather than being paid in cash and generally becomes due at maturity or upon being called by the issuer. PIK is recorded as interest or dividend income, as applicable. If at any point the Fund believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. Accrued PIK interest or dividends are generally reversed through interest or dividend income, respectively, when an investment is placed on non-accrual status.

Expenses are recorded on an accrual basis.

Foreign Currency Translation – The books and records of the Fund are maintained in U.S. dollars. Investment valuations and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates. Prevailing foreign exchange rates may generally be obtained at the close of the NYSE (normally, 4:00 p.m. EST).

Foreign Securities – The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.

Cash and Cash Equivalents – The Fund places its cash with one banking institution, which is insured by the Federal Deposit Insurance Corporation (“FDIC”). The FDIC limit is $250,000. At various times throughout the year, the amount on deposit may exceed the FDIC limit and subject the Fund to a credit risk. The Fund does not believe that such deposits are subject to any unusual risk associated with investment activities.

Loan Participation and Assignments – The Fund may invest in direct debt instruments, which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers. The Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of the loans from third parties. A loan is often administered by a bank or other financial institution (the “agent”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. The Fund may invest in multiple series or tranches of a loan, which may have varying terms and carry different associated risks. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund may be subject to the credit risk of both the borrower and the agent that is selling the loan agreement. When the Fund purchases assignments from lenders they acquire direct rights against the borrower of the loan. The Fund may enter into unfunded loan commitments, which are contractual obligations for future funding. Unfunded loan commitments represent a future obligation in full, even though a percentage of the notional loan amounts may not be utilized by the borrower. The Fund will rely on an exemption in Rule 18f-4(e) when entering into unfunded commitment agreements, which includes any commitment to make a loan to a company, including term loans, delayed draw term loans, and revolvers, or to invest equity in a company. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the agent selling the loan agreement and only upon receipt of payments by the agent from the borrower. The Fund may receive a fee based on the undrawn portion of the underlying line of credit of a floating rate loan. In certain circumstances, the Fund may receive a penalty fee upon the prepayment of a floating rate loan by a borrower. For the six months ended June 30, 2023, no penalty fees were received by the Fund. Fees earned or paid are recorded as a component of interest income or interest expense, respectively, on the Consolidated Statement of Operations. At June 30, 2023, the Fund had $39,493,958 at par value in unfunded loan commitments.

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Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Defaulted Securities – The Fund held defaulted securities and/or other securities for which the income has been deemed uncollectible. As of June 30, 2023, the aggregate value of those securities was $10,772 representing 0.00% of the Fund's net assets. The Fund doesn't accrue income on securities for which income has been deemed uncollectible. Additionally, the Fund provides for losses on interest receivable. Such securities have been identified on the accompanying Consolidated Schedule of Investments.

Distributions to Shareholders – The Fund intends to accrue dividends daily and to distribute as of the last business day of each quarter. Distributions of net capital gains are normally accrued and distributed in December. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from GAAP.

Indemnification – The Fund indemnifies its Officers and Trustees for certain liabilities that may arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on industry experience, the Fund expects the risk of loss due to these warranties and indemnities to be remote.

Federal Income Taxes – The Fund intends to continue to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and will distribute all of its taxable income, if any, to shareholders. Accordingly, no provision for federal income taxes is required in the consolidated financial statements.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is “more likely than not” (more than a fifty percent chance) to be sustained assuming examination by tax authorities. Management has reviewed the tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Fund’s 2022 returns.

Commitments and Contingencies – In the normal course of business, the Fund's investment activities involve executions, settlement and financing of various transactions resulting in receivables from, and payables to, brokers, dealers and the Fund's custodian. These activities may expose the Fund to risk in the event that such parties are unable to fulfill contractual obligations. Management does not anticipate any material losses from counterparties with whom it conducts business. Consistent with standard business practice, the Fund enters into contracts that contain a variety of indemnifications, and may be engaged from time to time in various legal actions. The maximum exposure of the Fund under these arrangements and activities is unknown. However, the Fund expects the risk of material loss to be remote.

Additionally, from time to time, the Adviser and its affiliates may commit to an investment on behalf of the funds it manages, including the Fund. Certain terms of these investments are not finalized at the time of the commitment and each respective fund's allocation may change prior to the date of funding. In this regard, the Fund may have to fund additional commitments in the future that it is currently not obligated to but may be at a future point in time.

3. DERIVATIVE TRANSACTIONS

The Fund’s investment objectives allow the Fund to enter into various types of derivative contracts such as forward foreign currency contracts. Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Consolidated Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward foreign currency exchange contracts are typically valued at their quoted daily prices obtained from an independent pricing service.

The Fund operates as a “limited derivatives user” for purposes of the derivatives transactions exemption in Rule 18f-4. To qualify as a limited derivatives user, the Fund’s “derivatives exposure” is limited to 10% of its net assets subject to exclusions for certain currency or interest rate hedging transactions (as calculated in accordance with Rule 18f-4). If the Fund ceases to qualify as a “limited derivatives user” as defined in Rule 18f-4, the rule would, among other things, require the Fund to establish a comprehensive derivatives risk management program, to comply with certain value-at-risk based leverage limits, to appoint a derivatives risk manager and to provide additional disclosure both publicly and to the SEC regarding its derivatives positions.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Forward Foreign Currency Contracts – The Fund engaged in currency transactions with counterparties during the six months ended June 30, 2023 to hedge the value of portfolio securities denominated in particular currencies against fluctuations in relative value or to gain or reduce exposure to certain currencies. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is terminated, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished.

Fair values of forward foreign currency contracts on the Consolidated Statement of Assets and Liabilities as of June 30, 2023, categorized by risk exposure:

Risk Exposure	Consolidated Statement of Assets and Liabilities Location	Fair Value		Consolidated Statement of Assets and Liabilities Location	Fair Value
Foreign Exchange Rate Risk (Forward Foreign Currency Contracts)	Unrealized appreciation on forward foreign currency contracts	$	241,200	Unrealized depreciation on forward foreign currency contracts	$	(196,846	)
Total		$	241,200		$	(196,846	)

For the six months ended June 30, 2023, the average monthly notional value of forward foreign currency contracts was $89,152,436.

The effect of forward foreign currency contracts on the Consolidated Statement of Operations for the six months ended June 30, 2023:

Risk Exposure	Consolidated Statement of Operations Location	Realized Gain/(Loss) on Derivatives			Consolidated Statement of Operations Location	Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income
Foreign Exchange Rate Risk (Forward Foreign Currency Contracts)	Net realized gain/(loss) on forward foreign currency contracts	$	(1,320,817	)	Change in unrealized appreciation/ (depreciation) on forward foreign currency contracts	$	(241,772	)
Total		$	(1,320,817	)		$	(241,772	)

4. ADVISORY FEES, ADMINISTRATION FEES AND OTHER AGREEMENTS WITH AFFILIATES

Investment Advisory

Pursuant to the Investment Advisory Agreement with the Fund (“Advisory Agreement”), the Adviser is entitled to an investment advisory fee of 1.50%, of the average daily net assets of the Fund, computed daily and payable monthly. Sub-advisory services are provided to the Fund pursuant to an agreement among the Fund, Adviser and Sub-Adviser ("Sub-Advisory Agreement"). The Adviser has agreed to pay the Sub-Adviser as compensation under the Investment Sub-Advisory Agreement a quarterly fee computed at the annual rate of the daily net assets as set forth below. The Sub-Adviser is compensated by the Adviser out of advisory fees paid by the Fund to the Adviser; the Fund does not compensate the Sub-Adviser.

Annual Sub-Advisory Fee Rate as a Percentage of Average Daily Net Assets
$0 to $250M	0.40%
$250M to $500M	0.30%
$500M to $1B	0.25%
Over $1B	0.20%

54	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

The Adviser and the Fund have entered into an expense limitation and reimbursement agreement with respect to Class F shares (the “Class F Expense Limitation Agreement”) and a separate agreement with respect to all other classes of shares (the “Multi-Class Expense Limitation Agreement” and together with the Class F Expense Limitation Agreement, the “Expense Limitation Agreements”). Pursuant to the Class F Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or to reimburse the Fund for expenses the Fund incurs to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursements (including taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs and organizational costs and offering costs) to the extent that they exceed, per annum, 1.50% of the Fund’s average daily net assets attributable to Class F shares. Pursuant to the Multi-Class Expense Limitation Agreement, the Adviser has contractually agreed to waive its fees and/or reimburse the Fund for expenses the Fund incurs, but only to the extent necessary to maintain the Fund’s total annual operating expenses after fee waivers and/or reimbursement (exclusive of any taxes, interest, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses, such as litigation or reorganization costs, but inclusive of organizational costs and offering costs) to the extent that such expenses exceed, per annum, 2.25% of Class A average daily net assets, 3.00% of Class C average daily net assets, 2.00% of Class I average daily net assets, 2.50% of Class L average daily net assets and 2.75% of Class M average daily net assets (the “Expense Limitations”). In consideration of the Adviser’s agreement to limit the Fund’s expenses, the Fund has agreed to repay the Adviser (or any successor thereto) in the amount of any fees waived and reimbursed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable not more than three years from the date on which they were incurred; and (2) the reimbursement may not be made if it would cause the lesser of the Expense Limitation applicable to such Class in place at the time of waiver or at the time of reimbursement to be exceeded. In addition, pursuant to the Multi-Class Expense Limitation Agreement, any such repayment must be approved by the Board. The Expense Limitation Agreements will remain in effect at least through April 30, 2024. The Multi-Class Expense Limitation Agreement may then be renewed for consecutive twelve-month periods provided that the Adviser specifically approves such continuance at least annually. The Class F Expense Limitation Agreement shall continue in effect so long as Class F shares are outstanding. The Expense Limitation Agreements may be terminated only by the Board on written notice to the Adviser and will automatically terminate at such time as the Management Agreement for the Fund is terminated. Prior to January 1, 2023, the Adviser voluntarily waived or absorbed certain of the operating expenses of the Fund since the commencement of the Fund’s operations.

During the six months ended June 30, 2023, fees waived and reimbursed expenses to the Fund by the Adviser totaled $727,984. The balance of recoupable expenses for the fund was as follows:

Expires December 31, 2023				Expires December 31, 2024				Expires December 31, 2025				Expires June 30, 2026
$	493,868			$	769,649			$	788,978			$	497,436

During the six months ended June 30, 2023, previously recoupable expenses totaling $775,108 expired.

Fund Administration and Accounting Fees and Expenses

ALPS Fund Services, Inc. serves as the Fund’s administrator and accounting agent (the “Administrator”) and receives customary fees from the Fund for such services. The Administrator is also reimbursed by the Fund for certain out of pocket expenses.

Transfer Agency Fees and Expenses

SS&C GIDS, Inc. (formerly known as DST Systems, Inc.) serves as transfer, distribution paying and shareholder servicing agent for the Fund and receives customary fees from the Fund for such services.

Custody Fees and Expenses

The Bank of New York Mellon Trust Company, National Association serves as the Fund’s custodian and receives customary fees from the Fund for such services.

Distribution and Shareholder Servicing Fees and Expenses

The Fund has entered into a Distribution Agreement with ALPS Distributors, Inc. (the “Distributor”) to provide distribution services to the Fund. The Distributor serves as principal underwriter of shares of the Fund. Under the Distribution Agreement, the Class C shares, Class L shares and Class M shares will pay to the Distributor a Distribution Fee that will accrue at an annual rate equal to 0.75%, 0.25% and 0.75% of the Fund’s average daily net assets attributable to Class C shares, Class L shares and Class M shares, respectively, payable on a monthly basis. For the six months ended June 30, 2023, Class C shares, Class L shares and Class M shares incurred distribution fees of $300,903, $14,922 and $0, respectively. Class A, Class I and Class F shares are not currently subject to a Distribution Fee. Under the Shareholder Services Plan, the Class A, Class C and Class L shares may pay up to 0.25% per year of their average daily net assets for such services. For the six months ended June 30, 2023, Class A, Class C and Class L shares incurred shareholder servicing fees of $79,884, $100,301 and $15,022, respectively. Class F shares, Class I shares and Class M shares are not currently subject to a shareholder services fee.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

The Distributor has entered into a wholesale marketing agreement with Griffin Capital Securities, LLC (“GCS”), a registered broker-dealer and an affiliate of the Adviser and Sub-Adviser. Pursuant to the terms of the wholesale marketing agreement, GCS will seek to market and otherwise promote the Fund through various wholesale distribution channels, including regional and independent retail broker-dealers, registered investment advisers, and wirehouses.

Officer and Trustee Compensation

Each Independent Trustee receives an annual retainer of $42,000, paid quarterly, as well as reimbursement for any reasonable expenses incurred attending the meetings and $500 per Independent Trustee per each special telephonic meeting (exclusive of one special telephonic meeting per year). The Chair of the Audit Committee receives an additional $15,750 annually. None of the executive officers, with the exception of the Chief Compliance Officer, receive compensation from the Fund. Certain Trustees and officers of the Fund are also officers of the Adviser and, with the exception of the Chief Compliance Officer, are not paid by the Fund for serving in such capacities.

Agreements with Affiliates

From time-to-time various affiliates of the Adviser (collectively, “Affiliates”) are involved in transactions whereby certain fees, including but not limited to, structuring, underwriting, arrangement, placement, syndication, advisory or similar services (collectively, “Capital Solution” services) are earned and in certain circumstances are rebated back the Fund in whole or in part. For the six months ended June 30, 2023, the Fund received fee rebates for Capital Solution services from certain Affiliates in the amounts of €54,583.33.

5. PURCHASES AND SALES OF INVESTMENT SECURITIES

The cost of purchases and proceeds from the sale of securities, other than short-term securities, for the six months ended June 30, 2023 were as follows:

Purchases of Securities				Proceeds from Sales of Securities
$	455,915,065			$	373,678,089

The Fund is permitted to purchase and sell securities (“Cross-Trade”) from and to other Apollo entities pursuant to procedures approved by the Board in compliance with Rule 17a-7 under the Investment Company Act (the “Rule”). Each Cross-Trade is executed at a fair market price in compliance with the provisions of the Rule. For the six months ended June 30, 2023, the Fund engaged in Cross-Trade activities with purchases of $36,199,762.

6. TAX BASIS INFORMATION

Distributions are determined in accordance with federal income tax regulations, which differ from GAAP, and, therefore, may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end.

The tax character of distributions paid for the fiscal years ended December 31, 2022 was as follows:

Year			Ordinary Income				Long-Term Capital Gain				Return of Capital
2022			$	39,533,763			$	–			$	–

As of June 30, 2023, net unrealized appreciation/(depreciation) of investments based on the federal tax cost was as follows:

Gross Appreciation (excess of value over tax cost)				Gross Depreciation (excess of tax cost over value)				Net Unrealized Appreciation/(Depreciation)				Cost of Investments for Income Tax Purposes
$	11,655,914			$	(18,654,656	)		$	(6,998,742	)		$	904,094,166

The difference between book basis and tax basis unrealized appreciation/(depreciation) is primarily due to premium amortization, defaulted income, wash sales, forward contracts and passive foreign investment companies.

56	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

7. CREDIT FACILITY

The Fund and the Fund's consolidated subsidiary, CRDTX SPV I, LLC, are party to a secured revolving credit facility with Citibank, N.A. ("Citi Credit Facility") subject to the limitations of the 1940 Act for borrowings. Amounts available to borrow under the Citi Credit Facility are subject to a borrowing base that applies different advance rates to different types of assets held by the Financing Subsidiary. Assets securing the Citi Credit Facility held by the Financing Subsidiary are subject to initial and ongoing eligibility criteria including restrictions on asset types and domicile, credit rating minimums, payment frequency and rate requirements, and collateral and maturity terms, among other criteria. The Fund and the Financing Subsidiary are also required to comply with various covenants, reporting requirements and other customary requirements. As of June 30, 2023, the Fund and the Financing Subsidiary were in compliance in all material respects with the terms of the Citi Credit Facility.

For the period January 1, 2023, to March 26, 2023, the Citi Credit Facility bore interest at applicable SOFR plus spread ranging from 1.80% to 3.30% based on the applicable weighted average discount margin and was subject to an unused commitment fee ranging from 0% to 1.60% per annum. On March 27, 2023, the Citi Credit Facility was amended pursuant to which certain changes were made including, but not limited to, increasing the amount of the facility from $270 million to $300 million. For the period March 27, 2023, to June 30, 2023, the Citi Credit Facility bore interest at SOFR plus spread ranging from 2.00% to 4.00% based on the applicable weighted average discount margin and was subject to an unused commitment fee ranging from 0% to 1.60% per annum. As of June 30, 2023, there was $188 million outstanding under the Citi Credit Facility.

For the six months ended June 30, 2023, the components of interest and unused commitment fees expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balance for the Citi Credit Facility were as follows:

	For the Six Months Ended June 30, 2023
Credit facility interest expense	$	7,001,794
Credit facility unfunded commitment fee		214,072
Credit facility fees		36,996
Amortization of debt issuance costs		189,201	*
Total credit facility expense	$	7,442,063
Average stated interest rate %		7.19	%
Average outstanding balance	$	200,035,912

^*	The Fund is amortizing debt issuance costs of $1,420,363, over a three year period ended March 27, 2026.

8. REPURCHASE OFFERS

As a continuously offered, closed-end interval fund, the Fund has adopted a fundamental policy in which it offers to repurchase at net asset value no less than 5% of the outstanding shares of the Fund once each quarter. It is possible that a repurchase offer may be oversubscribed and as such there is no guarantee that shareholders will be able to sell all of the shares they desire to sell in a quarterly repurchase offer, although each shareholder will have the right to require the Fund to purchase at least 5% of such shareholder’s shares in each quarterly repurchase. Liquidity will be provided to shareholders only through the Fund’s quarterly repurchase offers. Shareholders will receive written notice of each quarterly repurchase offer ("Repurchase Offer Notice") that includes the date the repurchase offer period ends ("Repurchase Request Deadline") and the date the repurchase price will be determined ("Repurchase Pricing Date"). Shares will be repurchased at the NAV per share determined on the Repurchase Pricing Date.

During the six months ended June 30, 2023, the Fund completed two quarterly repurchase offers in which the Fund offered to repurchase up to 5% of its outstanding shares as of each respective Repurchase Request Deadline. The shareholder repurchase requests received by the Fund in good order by the February 7, 2023, and May 9, 2023, Repurchase Request Deadlines exceeded the number of shares of the Fund subject to each repurchase offer and as such, the Fund determined to repurchase shares on a pro rata basis. Accordingly, the Fund repurchased approximately 60% of the total number of shares tendered for repurchase on February 7, 2023, and approximately 41% of the total number of shares tendered for repurchase on May 9, 2023. The result of the aforementioned repurchase offers were as follows:

	Repurchase Offer #1	Repurchase Offer #2
Commencement Date	December 28, 2022	March 30, 2023
Repurchase Request Deadline	February 7, 2023	May 9, 2023
Repurchase Pricing Date	February 7, 2023	May 9, 2023
Dollars Repurchased	$30,163,015	$32,167,802
Shares Repurchased	1,403,486	1,507,395

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

9. PRINCIPAL RISK FACTORS

In the normal course of business, the Fund invests in financial instruments and enters into financial transactions where risk of potential loss exists due to such things as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks. The following list is not intended to be a comprehensive listing of all of the potential risks associated with the Fund. For a more comprehensive list of potential risks the Fund may be subject to, please refer to the Fund’s Prospectus and Statement of Additional Information (“SAI”).

Risks Related to an Investment in the Fund

Investment and Market Risk. An investment in the Fund’s common shares is subject to investment risk, including the possible loss of the entire principal amount invested. An investment in the Fund’s common shares represents an indirect investment in the Fund’s portfolio of debt instruments, other securities, and derivative investments, and the value of these investments may fluctuate, sometimes rapidly and unpredictably. At any point in time an investment in the Fund’s common shares may be worth less than the original amount invested, even after taking into account distributions paid by the Fund and the ability of shareholders to reinvest dividends. The Fund may also use leverage, which would magnify the Fund’s investment, market and certain other risks.

All investments involve risks, including the risk that the entire amount invested may be lost. No guarantee or representation is made that the Fund’s investment objectives will be achieved. The Fund may utilize investment techniques, such as leverage and swaps, which can in certain circumstances increase the adverse impact to which the Fund’s investment portfolio may be subject.

Repurchase Offers Risks. The Fund is an interval fund and, in order to provide liquidity to shareholders, the Fund, subject to applicable law, will conduct repurchase offers of the Fund’s outstanding common shares at NAV, subject to approval of the Board. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and repurchases generally will be funded from available cash, cash from the sale of shares or sales of portfolio securities. However, repurchase offers and the need to fund repurchase obligations may affect the ability of the Fund to be fully invested or force the Fund to maintain a higher percentage of its assets in liquid investments, which may harm the Fund’s investment performance.

General Market Conditions Risk. Various sectors of the global financial markets have been experiencing an extended period of adverse conditions. Market uncertainty has increased dramatically, particularly in the United States and Europe, and adverse market conditions have expanded to other markets. These conditions have resulted in disruption of the global credit markets, periods of reduced liquidity, greater volatility, general volatility of credit spreads, an acute contraction in the availability of credit and a lack of price transparency. These volatile and often difficult global credit market conditions have episodically adversely affected the market values of equity, fixed-income and other securities and this volatility may continue and conditions could even deteriorate further. Some of the largest banks and companies across many sectors of the economy in the United States and Europe have declared bankruptcy, entered into insolvency, administration or similar proceedings, been nationalized by government authorities, and/or agreed to merge with or be acquired by other banks or companies that had been considered their peers. The long-term impact of these events is uncertain, but could continue to have a material effect on general economic conditions, consumer and business confidence and market liquidity.

Major public health issues, such as COVID-19, have at times, and may in the future impact the Fund. The COVID-19 pandemic caused substantial market volatility and global business disruption and impacted the global economy in significant and unforeseen ways. Any public health emergency, including the COVID-19 pandemic or any outbreak of other existing or new epidemic diseases or the threat thereof, and the resulting financial and economic market uncertainty, could have a material adverse impact on the Fund or its investments. Moreover, changes in interest rates, travel advisories, quarantines and restrictions, disrupted supply chains and industries, impact on labor markets, reduced liquidity or a slowdown in U.S. or global economic conditions resulting from a future public health crisis may also adversely affect the Fund or its investments. COVID-19, or any other health crisis and the current or any resulting financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to the Fund’s NAV, performance, financial condition, results of operations, ability to pay distributions, make share repurchases and portfolio liquidity, among other factors.

Anti-Takeover Provisions. The Fund’s Declaration of Trust includes provisions that could limit the ability of other entities or persons to acquire control of the Fund or convert the Fund to open-end status.

58	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Market Disruptions. The Fund may incur major losses in the event of market disruptions and other extraordinary events in which historical pricing relationships (on which the Sub-Adviser bases a number of its trading positions) become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. Market disruptions caused by unexpected political, military and terrorist events may from time to time cause dramatic losses for the Fund and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk.

Highly Volatile Markets. The prices of financial instruments in which the Fund may invest can be highly volatile. The prices of instruments in which the Fund may invest are influenced by numerous factors, including interest rates, currency rates, default rates, governmental policies and political and economic events (both domestic and global). Moreover, political or economic crises, or other events may occur that can be highly disruptive to the markets in which the Fund may invest. In addition, governments from time to time intervene (directly and by regulation), which intervention may adversely affect the performance of the Fund and its investment activities. The Fund is also subject to the risk of a temporary or permanent failure of the exchanges and other markets on which its investments may trade. Sustained market turmoil and periods of heightened market volatility make it more difficult to produce positive trading results, and there can be no assurance that the Fund’s strategies will be successful in such markets.

Credit Facilities. In the event we default under a credit facility or other borrowings, our business could be adversely affected as we may be forced to sell a portion of our investments quickly and prematurely at what may be disadvantageous prices to us in order to meet our outstanding payment obligations and/or support working capital requirements under such borrowing facility, any of which would have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, following any such default, the agent for the lenders under such borrowing facility could assume control of the disposition of any or all of our assets, including the selection of such assets to be disposed and the timing of such disposition, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

Shareholders May Experience Dilution. All distributions declared in cash payable to shareholders that are participants in our distribution reinvestment plan will generally be automatically reinvested in our shares. As a result, shareholders that do not participate in our distribution reinvestment plan may experience dilution over time.

Limitation on Liability of Trustees and Officers; Indemnification and Advance of Expenses. Delaware law permits a Delaware statutory trust to include in its declaration of trust a provision to indemnify and hold harmless any trustee or beneficial owner or other person from and against any and all claims and demands whatsoever. Our Declaration of Trust provides that our Trustees will not be liable to us or our shareholders for monetary damages for breach of fiduciary duty as a trustee to the fullest extent permitted by Delaware law. Our Declaration of Trust provides for the indemnification of any person to the full extent permitted, and in the manner provided, by Delaware law. In accordance with the 1940 Act, we will not indemnify certain persons for any liability to which such persons would be subject by reason of such person’s willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office.

Operational Risk. The Fund depends on the Sub-Adviser to develop the appropriate systems and procedures to control operational risk. Operational risks arising from mistakes made in the confirmation or settlement of transactions, from transactions not being properly booked, evaluated or accounted for or other similar disruption in the Fund’s operations, can cause the Fund to suffer financial loss, the disruption of its business, liability to clients or third parties, regulatory intervention or reputational damage. The Fund’s business is highly dependent on its ability to process, on a daily basis, a large number of transactions across numerous and diverse markets. Consequently, the Fund relies heavily on its financial, accounting and other data processing systems. The ability of its systems to accommodate an increasing volume of transactions could also constrain the Fund’s abilities to properly manage its portfolios. Shareholders are generally not notified of the occurrence of an error or the resolution of any error. Generally, the Sub-Adviser and its affiliates will not be held accountable for such errors, and the Fund may bear losses resulting from such errors.

Allocation Risk. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Sub-Adviser to allocate effectively the Fund’s assets among the various asset types in which the Fund invests and, with respect to each such asset class, among debt securities. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns.

Issuer Risk. The value of a specific security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of an issuer’s securities that are held in the Fund’s portfolio may decline for a number of reasons, which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods and services.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Management Risk. The net asset value of the Fund changes daily based on the performance of the securities in which it invests. The Sub-Adviser’s judgments about the attractiveness, value and potential appreciation of a particular sector and securities in which the Fund invests may prove to be incorrect and may not produce the desired results.

Correlation Risk. The Fund seeks to produce returns that are less correlated to the broader financial markets. Although the prices of equity securities and fixed-income securities, as well as other asset classes, often rise and fall at different times so that a fall in the price of one may be offset by a rise in the price of the other, in down markets the prices of these securities and asset classes can also fall in tandem. Because the Fund allocates its investments among different asset classes, the Fund is subject to correlation risk.

Distribution Policy Risk. The Fund’s distribution policy is to make quarterly distributions to shareholders. All or a portion of a distribution may consist solely of a return of capital (i.e. from your original investment) and not a return of net profit. Shareholders should not assume that the source of a distribution from the Fund is net profit. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares.

Risks Related to the Fund’s Investments

Loans Risk. Under normal market conditions, the Fund will invest in loans. The loans that the Fund may invest in include loans that are first lien, second lien, third lien or that are unsecured. In addition, the loans the Fund will invest in will usually be rated below investment grade or may also be unrated. Loans are subject to a number of risks described elsewhere in this Prospectus, including credit risk, liquidity risk, below investment grade instruments risk and management risk.

Investments in Bank Loans and Participations. The investment portfolio of the Fund may include bank loans and participations. The special risks associated with investing in these obligations include: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors’ rights laws; (ii) environmental liabilities that may arise with respect to collateral securing the obligations; (iii) adverse consequences resulting from participating in such instruments with other institutions with lower credit quality; (iv) limitations on the ability of the Fund or the Sub- Adviser to directly enforce any of their respective rights with respect to participations; and (v) generation of income that is subject to U.S. federal income taxation as income effectively connected with a U.S. trade or business.

Senior Loans Risk. Senior secured loans are usually rated below investment-grade or may also be unrated. As a result, the risks associated with senior secured loans are similar to the risks of below investment-grade fixed income instruments, although senior secured loans are senior and secured in contrast to other below investment-grade fixed income instruments, which are often subordinated or unsecured. Investment in senior secured loans rated below investment-grade is considered speculative because of the credit risk of their issuers. There may be less readily available and reliable information about most senior secured loans than is the case for many other types of securities. As a result, the Sub-Adviser will rely primarily on its own evaluation of a borrower’s credit quality rather than on any available independent sources. Therefore, the Fund will be particularly dependent on the analytical abilities of the Sub-Adviser.

In general, the secondary trading market for senior secured loans is not well developed. No active trading market may exist for certain senior secured loans, which may make it difficult to value them. Illiquidity and adverse market conditions may mean that the Fund may not be able to sell senior secured loans quickly or at a fair price. To the extent that a secondary market does exist for certain senior secured loans, the market for them may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods.

Subordinated Loans or Securities. Certain of the Fund’s investments may consist of loans or securities, or interests in pools of securities that are subordinated or may be subordinated in right of payment and ranked junior to other securities issued by, or loans made to obligors. If an obligor experiences financial difficulty, holders of its more senior securities will be entitled to payments in priority to the Fund. Some of the Fund’s asset-backed investments may also have structural features that divert payments of interest and/or principal to more senior classes of loans or securities backed by the same assets when loss rates or delinquency exceeds certain levels. This may interrupt the income the Fund receives from its investments, which may lead to the Fund having less income to distribute to investors.

In addition, many of the obligors are highly leveraged and many of the Fund’s investments will be in securities which are unrated or rated below investment-grade. Such investments are subject to additional risks, including an increased risk of default during periods of economic downturn, the possibility that the obligor may not be able to meet its debt payments and limited secondary market support, among other risks.

Loans to Private Companies. Loans to private and middle-market companies involves risks that may not exist in the case of large, more established and/or publicly traded companies.

60	1.888.926.2688 \| www.apollo.com

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Below Investment Grade, or High-Yield, Instruments Risk. The Fund anticipates that it may invest substantially all of its assets in instruments that are rated below investment grade. Below investment grade instruments are commonly referred to as “junk” or high-yield instruments and are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Lower grade instruments may be particularly susceptible to economic downturns, which could adversely affect the ability of the issuers of such instruments to repay principal and pay interest thereon, increase the incidence of default for such instruments and severely disrupt the market value of such instruments.

Valuation Risk. Unlike publicly traded common stock which trades on national exchanges, there is no central place or exchange for most of the Fund’s investments to trade. The Fund’s investments generally trade on an “over-the-counter” market which may be anywhere in the world where the buyer and seller can settle on a price. Due to the lack of centralized information and trading, the valuation of loans or fixed-income instruments may carry more risk than that of common stock. Uncertainties in the conditions of the financial market, unreliable reference data, lack of transparency and inconsistency of valuation models and processes may lead to inaccurate asset pricing. In addition, other market participants may value securities differently than the Fund. As a result, the Fund may be subject to the risk that when an instrument is sold in the market, the amount received by the Fund is less than the value of such loans or fixed-income instruments carried on the Fund’s books.

Liquidity Risk. To the extent consistent with the applicable liquidity requirements for interval funds under Rule 23c-3 of the 1940 Act, the Fund may invest in securities that, at the time of investment, are illiquid (determined using the SEC’s standard applicable to registered investment companies, i.e., securities that cannot be disposed of by the Fund within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the securities). However, securities that cannot be disposed of within seven days due solely to applicable laws or the Sub-Adviser’s compliance policies and procedures will not be subject to the limitations set forth above. The Fund may also invest in restricted securities. Investments in restricted securities could have the effect of increasing the amount of the Fund’s assets invested in illiquid securities if qualified institutional buyers are unwilling to purchase these securities.

Temporary Defensive Strategies. From time to time, the Fund may temporarily depart from its principal investment strategies as a defensive measure when the Sub-Adviser anticipates unusual market or other conditions. When a temporary defensive posture is believed by the Sub-Adviser to be warranted (“temporary defensive periods”), the Fund may without limitation hold cash or invest its Managed Assets in money market instruments and repurchase agreements in respect of those instruments. The money market instruments in which the Fund may invest are obligations of the U.S. government, its agencies or instrumentalities; commercial paper rated A-1 or higher by S&P or Prime-1 by Moody’s; and certificates of deposit and bankers’ acceptances issued by domestic branches of U.S. banks that are members of the Federal Deposit Insurance Corporation. During temporary defensive periods, the Fund may also invest to the extent permitted by applicable law in shares of money market mutual funds. Money market mutual funds are investment companies and the investments in those companies by the Fund are in some cases subject to applicable law. To the extent that the Fund invests defensively, it may not achieve its investment objective.

Credit Risk. Credit risk is the risk that one or more loans in the Fund’s portfolio will decline in price or fail to pay interest or principal when due because the issuer of the instrument experiences a decline in its financial status. While a senior position in the capital structure of a Borrower or issuer may provide some protection with respect to the Fund’s investments in certain loans, losses may still occur because the market value of loans is affected by the creditworthiness of Borrowers or issuers and by general economic and specific industry conditions and the Fund’s other investments will often be subordinate to other debt in the issuer’s capital structure. To the extent the Fund invests in below investment grade instruments, it will be exposed to a greater amount of credit risk than a fund which invests in investment grade securities. The prices of lower grade instruments are more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn, than are the prices of higher grade instruments. Instruments of below investment grade quality are predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and therefore involve a greater risk of default. In addition, the Fund may enter into credit derivatives which may expose it to additional risk in the event that the instruments underlying the derivatives default.

Interest Rate Risk. The fixed-income instruments that the Fund may invest in are subject to the risk that market values of such securities will decline as interest rates increase. These changes in interest rates have a more pronounced effect on securities with longer durations. Typically, the impact of changes in interest rates on the market value of an instrument will be more pronounced for fixed-rate instruments, such as most corporate bonds, than it will for floating rate instruments. Fluctuations in the value of portfolio securities will not affect interest income on existing portfolio securities but will be reflected in the Fund’s NAV. After a period of historically low interest rates, the Federal Reserve has raised, and has indicated its intent to continue raising, certain benchmark interest rates. It cannot be predicted with certainty when, or how, these policies will change, but actions by the Federal Reserve and other central bankers may have a significant effect on interest rates and on the U.S. and world economies generally. Market volatility, rising interest rates, uncertainty around interest rates and/or unfavorable economic conditions could adversely affect our business.

Transition from LIBOR Risk. Although the London Interbank Offered Rate (“LIBOR”) is no longer published as of June 30, 2023, certain securities and financial instruments that the Fund may hold may still include a LIBOR reference rate. The elimination of LIBOR and transition to other reference rates, or any other changes or reforms to the determination or supervision of reference rates, could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect Fund performance and/or NAV. Uncertainty and risk still remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may still lead to increased volatility and illiquidity in markets that have historically been tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, potentially adversely affecting Fund performance. Furthermore, the risks associated with the discontinuation of LIBOR and transition to alternative rates may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. The ultimate impact of the discontinuance of LIBOR on the Fund remains uncertain and may result in losses to the Fund.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve’s Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing the Secured Overnight Financing Rate (referred to as “SOFR”), which is their preferred alternative rate for U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are in the process of developing in response to these new rates. Although financial regulators and industry working groups have suggested alternative reference rates, such as the European Interbank Offer Rate, the Sterling Overnight Interbank Average Rate and SOFR, there has been no global consensus as to an alternative rate and the process for amending existing contracts or instruments to transition away from LIBOR remains incomplete.

Structured Products Risk. The Fund may invest up to 30% of its Managed Assets in structured products, including CLOs, floating rate mortgage-backed securities and credit linked notes. Holders of structured products bear risks of the underlying investments, index or reference obligation and are subject to counterparty risk.

Covenant-Lite Loans Risk. Covenant-lite loans contain fewer maintenance covenants than other types of loans, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. Covenant-lite loans may carry more risk than traditional loans as they allow individuals and corporations to engage in activities that would otherwise be difficult or impossible under a covenant-heavy loan agreement. In the event of default, covenant-lite loans may exhibit diminished recovery values as the lender may not have the opportunity to negotiate with the borrower prior to default.

CDO Securities. Collateralized debt obligation (“CDO”) securities generally are limited-recourse obligations of the issuer thereof payable solely from the underlying securities of such issuer or proceeds thereof. Consequently, holders of CDO securities must rely solely on distributions on the underlying securities or proceeds thereof for payment in respect thereof. If distributions on the underlying securities are insufficient to make payments on the CDO securities, no other assets will be available for payment of the deficiency and following realization of the underlying assets, the obligations of such issuer to pay such deficiency will be extinguished. Such underlying securities may consist of high-yield debt securities, loans, structured finance securities and other debt instruments, generally rated below investment-grade (or of equivalent credit quality) except for structured finance securities. High-yield debt securities are generally unsecured (and loans may be unsecured) and may be subordinated to certain other obligations of the issuer thereof. The lower rating of high-yield debt securities and below investment-grade loans reflects a greater possibility that adverse changes in the financial condition of an issuer or in general economic conditions or both may impair the ability of the issuer to make payments of principal or interest. Such investments may be speculative.

Privacy and Data Security Laws. Many jurisdictions in which the Fund and its portfolio companies operate have laws and regulations relating to data privacy, cyber security and protection of personal information, including the General Data Protection Regulation (“GDPR”) in the European Union that went into effect in May 2018 and the California Consumer Privacy Act (“CCPA”) that took effect in January 2020 and provides for enhanced consumer protections for California residents, a private right of action for data breaches and statutory fines for data breaches or other CCPA violations. If the Fund or the Sub-Adviser fail to comply with the relevant laws and regulations, it could result in regulatory investigations and penalties, which could lead to negative publicity and may cause investors and clients to lose confidence in the effectiveness of the Fund’s security measures.

Leverage Risk. Under current market conditions, the Fund generally intends to utilize leverage in an amount up to 33 1/3% of the Fund’s Managed Assets principally through Borrowings. In the future, the Fund may elect to utilize leverage in an amount up to 50% of the Fund’s total assets through the issuance of Preferred Shares. Leverage may result in greater volatility of the net asset value and distributions on the common shares because changes in the value of the Fund’s portfolio investments, including investments purchased with the proceeds from Borrowings or the issuance of Preferred Shares, if any, are borne entirely by common shareholders.

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Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Derivatives Risk. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund’s use of derivatives may increase or accelerate the amount of taxes payable by Common Shareholders.

The Fund relies on certain exemptions in Rule 18f-4 to enter into derivatives transactions and certain other transactions notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the 1940 Act. Under Rule 18f-4, “derivatives transactions” include the following: (1) any swap, security-based swap, futures contract, forward contract, option (excluding purchased options), any combination of the foregoing, or any similar instrument, under which the Fund is or may be required to make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale borrowing; and (3) if the Fund relies on the exemption in Rule 18f-4(d)(1)(ii), reverse repurchase agreements and similar financing transactions. The Fund will rely on a separate exemption in Rule 18f- 4(e) when entering into unfunded commitment agreements, which includes any commitment to make a loan to a company, including term loans, delayed draw term loans, and revolvers, or to invest equity in a company. To rely on the unfunded commitment agreements exemption, the Fund must reasonably believe, at the time it enters into such agreement, that it will have sufficient cash and cash the equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as they come due. The Fund will rely on the exemption in Rule 18f-4(f) when purchasing when-issued or forward-settling securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls) and non-standard settlement cycle securities, if certain conditions are met.

The Fund intends to operate as a “limited derivatives user” for purposes of the derivatives transactions exemption in Rule 18f-4. To qualify as a limited derivatives user, the Fund’s “derivatives exposure” is limited to 10% of its net assets subject to exclusions for certain currency or interest rate hedging transactions (as calculated in accordance with Rule 18f-4). Unless the Fund qualifies as a “limited derivatives user” as defined in Rule 18f-4, the rule would, among other things, require the Fund to establish a comprehensive derivatives risk management program, to comply with certain value-at-risk based leverage limits, to appoint a derivatives risk manager and to provide additional disclosure both publicly and to the SEC regarding its derivatives positions.

Inflation/Deflation Risk. Inflation risk is the risk that the value of certain assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the shares and distributions on the shares can decline.

In addition, during any periods of rising inflation, the dividend rates or borrowing costs associated with the Fund’s use of leverage would likely increase, which would tend to further reduce returns to shareholders. Deflation risk is the risk that prices throughout the economy decline over time—the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer defaults more likely, which may result in a decline in the value of the Fund’s portfolio.

Due to global supply chain disruptions, a rise in energy prices, strong consumer demand as economies continue to reopen and other factors, inflation has accelerated in the U.S. and globally. Recent inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and portfolio companies’ operations. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay interest and principal on their loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in a portfolio companies’ operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net assets resulting from operations.

Additionally, the Federal Reserve has raised, and has indicated its intent to continue raising, certain benchmark interest rates in an effort to combat inflation. As such, inflation may continue in the near to medium-term, particularly in the U.S., with the possibility that monetary policy may tighten in response.

Non-U.S. Instruments Risk. The Fund may invest in non-U.S. Instruments. Non-U.S. investments involve certain risks not typically associated with investing in the United States. Generally, there is less readily available and reliable information about non-U.S. issuers or Borrowers due to less rigorous disclosure or accounting standards and regulatory practices. The cost of servicing external debt will also generally be adversely affected by rising international interest rates, as many external debt obligations bear interest at rates which are adjusted based upon international interest rates. Because non-U.S. Instruments may trade on days when the Fund’s common shares are not priced, the Fund’s NAV may change at times when common shares cannot be sold.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2023 (Unaudited)

Foreign Currency Risk. Because the Fund may invest its Managed Assets in securities or other instruments denominated or quoted in currencies other than the U.S. dollar, changes in foreign currency exchange rates may affect the value of instruments held by the Fund and the unrealized appreciation or depreciation of investments. Currencies of certain countries may be volatile and therefore may affect the value of instruments denominated in such currencies, which means that the Fund’s NAV could decline as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. The Sub-Adviser may, but is not required to, elect for the Fund to seek to protect itself from changes in currency exchange rates through hedging transactions depending on market conditions. The Fund may incur costs in connection with the conversions between various currencies. In addition, certain countries may impose foreign currency exchange controls or other restrictions on the repatriation, transferability or convertibility of currency.

10. SUBSEQUENT EVENTS

Subsequent events after the date of the Consolidated Statement of Assets and Liabilities have been evaluated through the date the consolidated financial statements were issued.

As outlined in the Fund's Quarterly Repurchase Offer Notice dated June 29, 2023, the Fund offered to repurchase up to 5% of its outstanding shares (the "Repurchase Offer") at the net asset value of such shares on August 8, 2023 (the "Repurchase Date"). The repurchase requests received by the Fund by the Repurchase Date exceeded the number of shares subject to the Repurchase Offer and as such, the Fund repurchased shares on a pro rata basis. Accordingly, the Fund repurchased approximately 47% of the total number of shares tendered for repurchase which resulted in 1,645,948 repurchased shares for $35,552,405.

Management has determined that there were no other subsequent events to report through the issuance of these consolidated financial statements.

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Apollo Diversified Credit Fund

Dividend Reinvestment Policy

June 30, 2023 (Unaudited)

The Fund will operate under a dividend reinvestment plan administered by SS&C GIDS, Inc. (“Transfer Agent”) Pursuant to the policy, the Fund’s income dividends or capital gains or other distributions (each, a “Distribution” and collectively, “Distributions”), net of any applicable U.S. withholding tax, are reinvested in the same class of shares of the Fund.

Shareholders automatically participate in the dividend reinvestment plan, unless and until an election is made to withdraw from the policy on behalf of such participating shareholder. Shareholders who do not wish to have Distributions automatically reinvested should so notify the Transfer Agent in writing at Apollo Diversified Credit Fund, c/o SS&C GIDS, Inc. 430 W 7th St, Kansas City, MO 64105-1407. Such written notice must be received by the Transfer Agent 30 days prior to the record date of the Distribution or the shareholder will receive such Distribution in shares through the dividend reinvestment plan. Under the dividend reinvestment plan, the Fund’s Distributions to shareholders are reinvested in full and fractional shares as described below.

When the Fund declares a Distribution, the Transfer Agent, on the shareholder’s behalf, will receive additional authorized shares from the Fund either newly issued or repurchased from shareholders by the Fund and held as treasury stock. The number of shares to be received when Distributions are reinvested will be determined by dividing the amount of the Distribution by the Fund’s net asset value per share.

The Transfer Agent will maintain all shareholder accounts and furnish written confirmations of all transactions in the accounts, including information needed by shareholders for personal and tax records. The Transfer Agent will hold shares in the account of the shareholders in non-certificated form in the name of the participant, and each shareholder’s proxy, if any, will include those shares purchased pursuant to the dividend reinvestment plan. Each participant, nevertheless, has the right to request certificates for whole and fractional shares owned. The Fund will issue certificates in its sole discretion. The Transfer Agent will distribute all proxy solicitation materials, if any, to participating shareholders.

In the case of shareholders, such as banks, brokers or nominees, that hold shares for others who are beneficial owners participating under the dividend reinvestment plan, the Transfer Agent will administer the dividend reinvestment plan on the basis of the number of shares certified from time to time by the record shareholder as representing the total amount of shares registered in the shareholder’s name and held for the account of beneficial owners participating under the dividend reinvestment plan.

Neither the Transfer Agent nor the Fund shall have any responsibility or liability beyond the exercise of ordinary care for any action taken or omitted pursuant to the dividend reinvestment plan, nor shall they have any duties, responsibilities or liabilities except such as expressly set forth herein. Neither shall they be liable hereunder for any act done in good faith or for any good faith omissions to act, including, without limitation, failure to terminate a participant’s account prior to receipt of written notice of his or her death or with respect to prices at which shares are purchased or sold for the participants account and the terms on which such purchases and sales are made, subject to applicable provisions of the federal securities laws.

The automatic reinvestment of Distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such Distributions.

The Fund reserves the right to amend or terminate the dividend reinvestment plan. There is no direct service charge to participants with regard to purchases under the dividend reinvestment plan; however, the Fund reserves the right to amend the dividend reinvestment plan to include a service charge payable by the participants.

All correspondence concerning the dividend reinvestment plan should be directed to the Transfer Agent at Apollo Diversified Credit Fund, c/o SS&C GIDS, Inc. 430 W 7th St, Kansas City, MO 64105-1407. Certain transactions can be performed by calling the toll free number 1-888-926-2688.

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Additional Information

June 30, 2023 (Unaudited)

1. PROXY VOTING POLICIES AND VOTING RECORD

A description of the policies and procedures that the Fund uses to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free 888-926-2688, or on the Securities and Exchange Commission’s (“SEC”) website at https://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available without charge upon request by calling toll-free 888-926-2688, or on the SEC’s website at https://www.sec.gov.

2. QUARTERLY PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s web site at http://www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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Apollo Diversified Credit Fund

Trustees and Officers

June 30, 2023 (Unaudited)

The business and affairs of the Fund are managed under the direction of the Trustees. Information concerning the Trustees and officers of the Fund is set forth below. Generally, each Trustee and officer serves an indefinite term or until certain circumstances such as his resignation, death, or otherwise as specified in the Fund’s organizational documents. Any Trustee may be removed at a meeting of shareholders by a vote meeting the requirements of the Fund’s organizational documents. The Statement of Additional Information of the Fund includes additional information about the Trustees and officers and is available, without charge, upon request by calling the Fund toll-free at 888-926-2688.

INDEPENDENT TRUSTEES

Name and Year of Birth	Position/Term of Office*	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee**	Other Directorships held by Trustee During Last Five Years
Meredith Coffey (1968)	Trustee Since 2022	From August 2008 to present, Ms. Coffey serves Head of Research and the Co-Head of Public Policy for the Loan & Syndications Trading Association.	1	Director, Apollo Senior Floating Rate Fund Inc. (2023-present); Director, Apollo Tactical Income Fund Inc. (2023- present); Director, Apollo Debt Solutions, BDC (2021-present).
Christine Gallagher (1985)	Trustee Since 2022	From March 2021 to present, Ms. Gallagher serves as a Community Engagement Manager at Leidos, a company that provides information technology, engineering and science services for government and commercial contractors. Ms. Gallagher also serves as president of Military Quality of Life Consulting, LLC, a military support company she founded in 2015. From 2015 to 2019, she served as an agile IT project manager for BAM Technologies, LLC.	1	Director, Apollo Debt Solutions, BDC (2021-present).
Michael Porter (1983)	Trustee Since 2022	From December 2014 to present, Mr. Porter has worked at Netflix in Corporate Development and Strategy. In December 2020, Mr. Porter was appointed to the Board of Directors of Ednovate Charter School.	1	Director, Apollo Debt Solutions, BDC (2021-present).
Carl J. Rickertsen (1960)	Trustee Since 2022	From 2015 to present, Mr. Rickertsen has served as managing partner of Pine Creek Partners, a private equity investment firm.	1	Director, MicroStrategy Inc. (2002-present); Director, Apollo Senior Floating Rate Fund Inc. (2011-2023); Director, Apollo Tactical Income Fund Inc. (2013-2023); Director, Berry Global Inc. (2013-present); Director, Apollo Debt Solutions, BDC (2021-present).

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Trustees and Officers

June 30, 2023 (Unaudited)

INTERESTED TRUSTEES AND OFFICERS

Name and Year of Birth	Position/Term of Office*	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee**	Other Directorships held by Trustee During Last 5 Years
Earl Hunt (1981)	Chairman, Trustee, and President Since 2022	Mr. Hunt joined Apollo Global Management, Inc. and its consolidated subsidiaries in 2021. From 2015 to 2021, Mr. Hunt served as a Partner in the Global Markets division at Goldman Sachs. He also was a member of Goldman Sach’s Partnership Committee, Global Markets Operating Committee and was co-chair of the Global Markets Inclusion and Diversity Committee.	1	Director, Apollo Debt Solutions, BDC (2021-present).
Kenneth Seifert (1978)	Treasurer and Chief Financial Officer Since 2022	Controller, Principal and Director, Apollo Global Management, Inc. and affiliates since 2021 and 2017, respectively. Treasurer and Chief Financial Officer of Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund since 2021, Controller 2017 to 2021. Treasurer and Chief Financial Officer of Apollo Diversified Real Estate Fund since 2022.	N/A	N/A
Kristin Hester (1980)	Chief Legal Officer and Secretary Since 2022	Managing Director, General Counsel-Regulated Funds, Apollo Global Management, Inc., 2015 to present; Chief Legal Officer, MidCap Financial Investment Corporation, Apollo Debt Solutions BDC, Apollo Tactical Income Fund Inc., Apollo Senior Floating Rate Fund Inc., and Redding Ridge Asset Management LLC, 2022 to present.	N/A	N/A
Ryan Del Giudice (1990)	Chief Compliance Officer Since 2018, Vice President and Assistant Secretary Since 2020	Principal, Apollo Global Management, Inc., 2022 to present; Chief Compliance Officer, Apollo Diversified Real Estate Fund, 2018 to present; Chief Compliance Officer, MidCap Financial Investment Corporation, Apollo Debt Solutions BDC, Apollo Tactical Income Fund Inc. and Apollo Senior Floating Rate Fund Inc., 2023 to present; Chief Compliance Officer, Griffin Capital Asset Management Company, LLC, 2017 to 2022.	N/A	N/A

The term of office for each Trustee and officer listed above will continue indefinitely.

The term “Fund Complex” refers to the Apollo Diversified Credit Fund and Apollo Diversified Real Estate Fund.

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Apollo Diversified Credit Fund

Service Providers

June 30, 2023 (Unaudited)

Investment Adviser

Apollo Capital Credit Adviser, LLC

9 W 57th Street, New York, NY 10019

Investment Sub-Adviser

Apollo Credit Management, LLC

9 W 57th St, New York, NY 10019

Administrator

ALPS Fund Services, Inc.

1290 Broadway, Suite 1000, Denver, CO 80203

Custodian

Bank of New York Mellon Trust Company, National Association

601 Travis Street, 16th Floor, Houston, TX 77002

Distributor

ALPS Distributors, Inc.

1290 Broadway, Suite 1000, Denver, CO 80203

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

30 Rockefeller Plaza, New York, NY 10112

Legal Counsel

Simpson Thacher & Bartlett LLP

900 G Street, NW, Washington, D.C. 20001

Transfer Agent and DRIP Administrator

SS&C GIDS, Inc.

330 W 9th Street, Kansas City, MO 64105

Semi-Annual Report | June 30, 2023

Apollo Diversified Credit Fund

Privacy Notice

June 30, 2023 (Unaudited)

DATA PRIVACY NOTICE

What Information Do We Have About You?

We may have collected your personal information in connection with your investment in Apollo Diversified Credit Fund. Additionally, we may collect nonpublic personal information about you via our website, including any information captured through the use of our “cookies.”

With Whom Do We Share Your Personal Information?

We may share the information we collect with our affiliates and nonaffiliated third parties for our everyday business purposes, such as to process your transactions, maintain your investments in the Fund, and to respond to court orders and legal investigations. We also provide such information to our affiliates, attorneys, banks, auditors, securities brokers and service providers as may be necessary to facilitate the acceptance and management of your account or your investments in the Funds and to enable them to perform services on our behalf. We do not sell your personal information to third parties for their independent use.

Protecting the Confidentiality of Our Investor Information

Apollo takes our responsibility to protect the privacy and confidentiality of your personal information very seriously. As such, we maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information, although you should be aware that data protection cannot be guaranteed. We restrict access to nonpublic personal information about you to our employees and agents who need to know such information to provide products or services to you. Our control policies, for example, authorize access to investor information only by individuals who need such access to do their work.

Opt-Out Notice

We reserve the right to disclose nonpublic personal information about you to a nonaffiliated third party as discussed above. If you wish to limit the distribution of your personal information with our affiliates and nonaffiliated third parties, as described herein, you may do so by:

●

Calling (877) 864-4834; or

●

Writing us at the following address:
c/o: Apollo Diversified Credit Fund
9 West 57th Street, New York, NY 10019
Attn: Ryan DelGiudice

The ability to opt out of disclosure of nonpublic personal information about you may not apply to arrangements necessary to effect or administer a transaction in shares of a Fund or maintain or service your account.

If you choose to write or call us, your request should include your name, address, telephone number and account number(s) to which the opt-out applies and the extent to which your personal information shall be withheld. If you are a joint account owner, we will apply those instructions to the entire account. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

Please understand that if you limit our sharing or our affiliated companies’ use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies’ products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If your shares are held in “street name” at a bank or brokerage, we do not have access to your personal information, and you should refer to your bank’s or broker’s privacy policies for a statement of the treatment of your personal information.

If you have any questions regarding this policy, please feel free to contact privacy@apollo.com.

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Intentionally Left Blank

(b)

Not Applicable.

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

The Fund is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

Item 6. Investments.

(a)

The Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this report.

(b)

Not applicable to the Fund.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

(a)

Not applicable.

(b)

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

No changes have occurred.

Item 11. Controls and Procedures.

(a)

Based on an evaluation of the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act), the registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective as of a date within 90 days of the filing date of this report.

(b)

There were no significant changes in the Fund’s internal control over financial reporting that occurred during the Fund’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

None.

Item 13. Exhibits.

(a)(1)

Not applicable.

(a)(2)

Certifications required by Item 13(a)(2) of Form N-CSR are filed herewith as Exhibit 99.CERT.

	(a)(3)	Not applicable to Registrant.

	(a)(4)	Not applicable.

	(b)	Certifications required by Item 13(b) of Form N-CSR are filed herewith as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

APOLLO DIVERSIFIED CREDIT FUND

By:	/s/ Earl Hunt
	Earl Hunt (Principal Executive Officer)

Date:	September 1, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)

By:	/s/ Earl Hunt
	Earl Hunt
	President (Principal Executive Officer)

Date:	September 1, 2023

By (Signature and Title)

By:	/s/ Kenneth Seifert
	Kenneth Seifert
	Treasurer (Principal Financial Officer)

Date:	September 1, 2023

Apollo Diversified Credit Fund (CRDTX) N-CSRSCertified semi-annual shareholder report (management investment company)