Daily Pricing Definition

“Daily Pricing” refers to an estimated fair value of Apollo Asset Backed Credit Company LLC (the “Company”), as of a specified date, determined in accordance with internal valuation policies and procedures. Daily Pricing reflects the prior business day and is available the following business day. Daily Pricing is not a market-clearing price and may differ significantly from the Company’s net asset value under U.S. Generally Accepted Accounting Principles (“GAAP”) or the transactional net asset value (“Transactional NAV”) for a type of share of the Company. It is an estimate, subject to the limitations, assumptions, and judgments described herein. With certain adjustments as discussed below, Daily Pricing is intended to reflect fair value as that concept is applied under GAAP.

The calculation of Daily Pricing at the Company level is inclusive of, to the extent applicable, (i) the estimated economic impact of management fees, performance fees, transaction expenses, and other costs or expenses, which in the aggregate are expected to be substantial, and (ii) tax accrual based on the most recent estimated effective tax rate applicable to any GAAP earnings subject to income taxes, which is periodically reviewed and adjusted. In calculating tax accruals, certain adjustments may be made to GAAP, using a Transactional NAV to exclude the recognition of distribution and servicing fees, liabilities, certain deferred tax liabilities that, although required to be recognized under GAAP, are not expected to be paid by the Company, based on anticipated income, available deductions and the timing of realization events, among other adjustments.

Because many Company assets do not trade in active markets, fair value is derived from internal models, subjective inputs, and the professional judgment of Apollo Manager, LLC (the “Operating Manager”). Inputs may include market data, comparable security prices, credit analytics, sector spreads, interest rate observations, borrower financial information, and other quantitative or qualitative factors the Operating Manager deems relevant. The Operating Manager may, but is not required to, consult or rely upon third-party pricing services, broker quotations, or independent valuation providers.

Assets subject to Daily Pricing currently include a broad range of instruments, including but not limited to: (i) corporate obligations, including investment-grade and below-investment-grade debt, as determined by the Operating Manager using internal credit assessment methodologies that may differ from ratings assigned by nationally recognized statistical rating organizations; (ii) structured finance assets, including asset-backed securities, collateralized loan obligations, mortgage-backed securities, and other instruments whose cash flows are derived from pools of underlying obligations; (iii) directly originated loans and other privately negotiated credit instruments for which no active secondary market exists; and (iv) other illiquid or thinly traded securities for which observable market prices are limited, unavailable, or, in the Operating Manager’s judgment, anomalous. The Operating Manager may modify the assets subject to Daily Pricing in its sole discretion.

A material portion of the Company’s portfolio may consist of GAAP Level 3 (“Level 3”) assets, whose valuations rely on significant unobservable inputs and are subject to a higher degree of estimation uncertainty, management judgment or estimation, and model risk than assets priced using observable market data. Shareholders should assume that a meaningful component of Daily Pricing at the Company level includes Level 3 asset valuations.

Important Disclosure

Daily Pricing is provided solely for informational purposes. This information on Daily Pricing does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product or service. This information is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to any laws or regulations. Any subscriptions or repurchases of the Company’s securities will be completed at the applicable Transactional NAV per share pursuant to the regular monthly subscription process and quarterly repurchase processes. Daily Pricing does not constitute financial, tax, legal or investment advice and is not an offer to sell or to repurchase Company or any other securities. Daily Pricing is not a measure of Company performance and should not be used to assess returns. Because the Company does not offer to purchase or repurchase shares on a daily basis, the Company is not required to, nor does it, determine a daily Transactional NAV per share. It should not be assumed that investments made in the future will be profitable or will equal the performance of the Company’s prior investments. You should not rely on Daily Pricing when making any investment decision. You should not use displayed Daily Pricing to estimate or verify Transactional NAV and should refer to the applicable official Transactional NAV, which may materially differ from the Company Daily Pricing information provided.

In general, Daily Pricing is updated each business day as of the prior business day. The Company’s Transactional NAV is expected to be determined on a monthly basis in accordance with the Company’s valuation policies and procedures. The Company’s Transactional NAV is expected to be made available within 25 calendar days of the last day of each month, reflecting valuations as of the prior month-end. As a result, Transactional NAV may differ materially from Daily Pricing for any given period, and Transactional NAV will govern for purposes of subscriptions, repurchases, fee calculations and all other transactional purposes. During this interval, market conditions, credit quality, and the fair value of individual holdings may have changed materially. You should not interpret these prices as reflecting current market values. A change in Daily Pricing from one business day to the next does not constitute, and should not be interpreted as a measure of, the Company’s performance. Daily Pricing is provided only for additional transparency as an estimated measure reflecting the Operating Manager’s good-faith estimate of fair value as of a specified date. It is not derived from audited or reviewed financials, official monthly/quarterly valuations, or other calculations used for performance reporting purposes. Reliance on Daily Pricing to draw conclusions about returns could be misleading and is not an intended use of this information.  You should not treat Daily Pricing as a guarantee or assurance of the proceeds that would be received upon repurchase, liquidation, or disposition.

The Operating Manager must process, assess, and value a large number of portfolio positions on each business day. Given the volume, frequency, and operational complexity of computing Daily Pricing, errors may occur. However, any such errors have no impact on shareholders because Daily Pricing is provided solely for informational and transparency purposes and is not intended to constitute a definitive valuation of the Company, the Transactional NAV, or to serve as a basis for any investment decision, subscription, repurchase, transaction, or other action by investors. Any error identified by the Operating Manager in a given day’s Daily Pricing will, in the ordinary course, be superseded by the following business day’s calculated estimate, and neither the Company nor the Operating Manager is under any obligation to issue corrections or restatements of previously published Daily Pricing.