Certified Annual Shareholder Report for Management Investment Companies (n-csr)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-22591

Apollo Tactical Income Fund Inc.

(Exact name of registrant as specified in charter)

9 West 57th Street

New York, New York 10019

(Address of principal executive offices) (Zip code)

Joseph Moroney, President

9 West 57th Street

New York, New York 10019

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 515-3200

Date of fiscal year end: December 31

Date of reporting period: December 31, 2021

Item 1. Reports to Stockholders.

(a)	The Report to Shareholders is attached herewith.

(b)	Not applicable.

LOGO

Apollo Senior Floating Rate Fund Inc. (NYSE: AFT)

Apollo Tactical Income Fund Inc. (NYSE: AIF)

Annual Report

December 31, 2021

Important Information on Paperless Delivery

As permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, www.apollofunds.com, and you will be notified by mail each time a report is posted and provided with a web-site link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-877-864-4834.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with a Fund, you can call 1-877-864-4834. Your election to receive paper reports applies to all funds held within the Fund complex.

TABLE OF CONTENTS


Manager Commentary (unaudited)			1
Financial Data and Fund Performance
Apollo Senior Floating Rate Fund Inc. (unaudited)			3
Apollo Tactical Income Fund Inc. (unaudited)			5
Schedules of Investments
Apollo Senior Floating Rate Fund Inc.			7
Apollo Tactical Income Fund Inc.			13
Statements of Assets and Liabilities			20
Statements of Operations			21
Statements of Changes in Net Assets
Apollo Senior Floating Rate Fund Inc.			22
Apollo Tactical Income Fund Inc.			23
Statements of Cash Flows
Apollo Senior Floating Rate Fund Inc.			24
Apollo Tactical Income Fund Inc.			25
Financial Highlights
Apollo Senior Floating Rate Fund Inc.			26
Apollo Tactical Income Fund Inc.			27
Notes to Financial Statements			28
Report of Independent Registered Public Accounting Firm			46
Fund Investment Objectives, Policies and Risks (unaudited)			47
Additional Information (unaudited)			61
Directors and Officers (unaudited)			63
Important Information About This Report			65

Economic and market conditions change frequently.

There is no assurance that the trends described in this report will continue or commence.

This report, including the financial information herein, is transmitted to shareholders of the Funds for their information. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Manager Commentary

As of December 31, 2021 (unaudited)

Dear Shareholders,

We would like to start by saying thank you for your interest in Apollo Senior Floating Rate Fund Inc. and Apollo Tactical Income Fund Inc. (the “Funds”). We appreciate the trust and confidence you have placed with us through your investment in the Funds.

The year started out strong on the heels of historic volatility and uncertainty, and the energetic tone persisted throughout the duration of 2021, with record supply of leveraged loans meeting record demand. Improved fundamentals, loose monetary policy, and accommodating market conditions drew more borrowers to the leveraged loan primary market than ever before. At the same time, unprecedented collateralized loan obligation (“CLO”) issuance and a surge in retail demand easily absorbed the supply. Altogether, the favorable backdrop provided for a post-pandemic rebound with the S&P/LSTA Leveraged Loan Index up 5.2% for the year. That said, performance was not consistent throughout the year as COVID headlines created brief periods of volatility and market conditions also evolved. The year started with hardly any net new supply of leveraged loans following the pandemic and the average bid price was around 96. By the fourth quarter, there was record new issuance of leveraged loans and the average bid price reached into the mid-98s. Unsurprisingly, the strength of the rally declined as the year progressed.

After primary markets virtually shut down in 2020, we saw $615 billion of new loan supply in 2021, which is 22% higher than the previous record of $503 billion set in 2017. As a result, the loan asset class grew by 12% in 2021 to $1.35 trillion, the most on record. The primary driver for the surge in supply was the unprecedented pace of mergers and acquisitions (“M&A”) and leveraged buyout (“LBO”) transactions that took place over the year. Since deal making stalled while cash balances swelled during the pandemic, we saw a flurry of activity once markets reopened. Not only did we see a record number of borrowers in the primary loan market to raise M&A related financing, but the average size of these transactions increased as well. In 2021, we saw $331 billion of M&A related volume (20% higher than the previous record of $275 billion in 2018) from 436 borrowers (compared to 421 in 2018 and the previous record of 427 in 2007). Sponsored companies accounted for 73% of deal related activity, reaching another record of $240 billion. Favorable market conditions and strong demand also led to $260 billion of opportunistic refinancing activity and dividend recapitalizations. Additionally, there was a push in November and December from issuers who wanted to price deals based on the London Interbank Offered Rate (“LIBOR”) (which can no longer be used for new issues in 2022), which accelerated the calendar and contributed to overall supply.

While loan issuance soared, so did demand. The most notable driver of demand in the loan market came from the remarkable CLO issuance we saw in 2021. For context, CLO issuance set a new record in each quarter throughout the year. Full year CLO issuance totaled $186.7 billion, which was 45% higher than the previous record of $128.9 billion in 2018 (and actually surpassed this record before the end of the third quarter). In addition to CLO demand, there were inflows to loan funds of nearly $45 billion as impending rate hikes drew investors to floating rate products. To put this in context, the $45 billion of inflows in 2021 equates to nearly 50% of loan fund assets under management at the end of 2021. Not only is the market seeing inflows to loan funds, but we also continue to see other retail funds increasing their allocations to loans. A diversified lender base has also helped to create liquidity in the secondary market as we’ve seen a strong desire to execute loan trades on a portfolio level (as is customary in the high-yield bond market), which compels dealers to make markets on a wider selection of loans, which in turn increases competition and improves trading efficiency.

We expect M&A and LBO-related activity to remain elevated to start the new year with new loan supply continuing to be robust. Accordingly, demand is also expected to be supportive given the healthy CLO pipeline and number of open warehouses, while rate hikes should continue to attract inflows from retail investors looking for floating rate exposure. Corporate fundamentals have improved significantly this year and issuers have pushed out the near-term maturities following a wave of refinancing activity. Accordingly, we expect the default rate to remain near historic lows. While repricing risk is a concern given levels are approaching par in secondary trading, opportunistic activity may be impacted by complexities related to the LIBOR transition and having to reprice with a different underlying rate. The LIBOR transition may also impact demand to the extent that CLO managers will look to reduce basis risk and prefer to hold more legacy LIBOR-based loans when possible. That said, newer deals will likely prefer term loans based on the Secured Overnight Financing Rate (“SOFR”) and it will be interesting to see if this nuance creates opportunity. Overall, the economic backdrop and supply/demand technical is supportive for loans in the new year.

Despite the overwhelmingly positive momentum, 2021 was also colored by periods of volatility due to a number of different macro factors that continue to impact markets today and will remain important themes in 2022. While people are learning to live with COVID and another lockdown in the US is unlikely, variant risk still remains. In particular, fourth quarter performance lagged relative to the rest of the year due to concerns over the COVID Omicron variant and the impact from resulting labor shortages. Additionally, inflation and supply chain constraints will continue to weigh on certain sectors which may negatively impact earnings and increase leverage. Political and economic uncertainty in

Annual Report | 1

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Manager Commentary (continued)

As of December 31, 2021 (unaudited)

China along with volatility in energy prices may also disrupt markets. That said, balance sheets are strong and the market is open, so companies can focus on growth and continue to create opportunity in leveraged capital markets.

We appreciate your interest and support in the Funds. If you have any questions about the Funds, please call 1-877-864-4834, or visit our website at www.apollofunds.com.

Sincerely,

Apollo Credit Management, LLC

2 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Financial Data

December 31, 2021 (unaudited)


Portfolio Composition (as % of Current Market Value of Investment Securities)


Loans		97.4%
High-Yield Bonds		1.5%
Equity/Other		1.1%


Portfolio Characteristics^(a)


Weighted Average Floating-Rate Spread		4.29%
Weighted Average Fixed-Rate Coupon		7.33%
Weighted Average Maturity (in years) (floating assets)		5.17
Weighted Average Maturity (in years) (fixed assets)		3.36
Weighted Average Modified Duration (in years) (fixed assets)		2.27
Weighted Average Modified Duration (in years)^(e)		4.31
Average Position Size by Issuer^(f)	$	4,040,692
Number of Issuers^(f)		97
Weighted Average S&P Rating^(g)		B
Weighted Average Rating Factor (Moody’s)^(g)		3,003


Credit Quality^(b)


BB		6.3%
B		74.0%
CCC+ or Lower		10.3%
Not Rated		9.4%


Top 5 Industries (as % of Current Market Value of Investment Securities)^(c)


Services: Business				14.2%
Healthcare & Pharmaceuticals				11.9%
High Tech Industries				11.2%
Telecommunications				10.1%
Banking, Finance, Insurance & Real Estate				6.5%
Total				53.9%


Top 10 Issuers (as % of Current Market Value of Investment Securities)^(d)


Intelsat Jackson Holdings S.A.				5.8%
The Edelman Financial Center, LLC				2.6%
DTI Holdco, Inc.				2.3%
DCert Buyer, Inc.				2.3%
Gainwell Acquisition Corporation				2.2%
Garda World Security Corporation				2.1%
Allied Universal Holdco, LLC				2.1%
Peraton Corporation				2.0%
Polaris Newco, LLC				1.9%
Asurion, LLC				1.9%
Total				25.2%

^(a)	Averages based on par value of investment securities, except for the weighted average modified duration, which is based on market value.

^(b)

Credit quality is calculated as a percentage of fair value of investment securities at December 31, 2021. The quality ratings reflected were issued by S&P Global Ratings (“S&P”), an internationally recognized statistical rating organization. Credit quality ratings reflect the rating agency’s opinion of the credit quality of the underlying positions in the Fund’s portfolio and not that of the Fund itself. Credit quality ratings are subject to change.

^(c)	The industry classifications reported are from widely recognized market indexes or rating group indexes, and/or as defined by Fund management, with the primary source being Moody’s Investors Service (“Moody’s”), an internationally recognized statistical rating organization.

^(d)	Holdings are subject to change and are provided for informational purposes only.

^(e)	Excludes equity investments and warrants and includes fixed and floating rate assets.

^(f)	Excludes equity investments and warrants.

^(g)	Excludes securities with no rating or non-performing defaulted securities as of December 31, 2021.

Annual Report | 3

Apollo Senior Floating Rate Fund Inc.

Fund Performance

December 31, 2021 (unaudited)

Apollo Senior Floating Rate Fund Inc. (“AFT”) returned 8.38% on a net asset value per share basis and 19.04% on a market price per share basis for the year ending December 31, 2021, outperforming the S&P/LSTA Leveraged Loan Index, which returned 5.20% for the year. As of December 31, 2021, AFT held 97.4% of its fair value of investment securities in first and second lien leveraged loans, 1.5% in high-yield bonds and 1.1% in equities and other securities. Outperformance in AFT relative to the index was driven mostly through credit selection as a number of idiosyncratic opportunities and events resulted in excess returns. Additionally, AFT was overweight CCC credits relative to the index, which also outperformed over the year.


Performance Comparison


	YTD			5 Yr			10 Yr			Since Inception^(d)
AFT - Market Price		19.04	%^(a)		5.97	%^(a)(b)		7.63	%^(a)(b)		5.35	%^(a)(b)
AFT - NAV		8.38	%^(a)		5.61	%^(a)(b)		6.79	%^(a)(b)		6.00	%^(a)(b)
S&P/LSTA Leveraged Loan Index^(c)		5.20	%		4.27	%^(b)		4.69	%^(b)		4.22	%^(b)


Distributions^(e)


Current Monthly Distribution (per share)	$	0.085
Current Distribution Rate at Market Price^(f)		6.33	%
Current Distribution Rate at NAV^(f)		6.20	%

LOGO

^(a)

Performance reflects total return assuming all distributions were reinvested at the dividend reinvestment rate. Past performance does not necessarily indicate how the Fund will perform in the future. The performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions received from the Fund.

^(b)	Annualized.

^(c)	The S&P/LSTA Leveraged Loan Index is a broad index designed to reflect the performance of the U.S. dollar facilities in the leveraged loan market.

^(d)	Inception date February 23, 2011.

^(e)	All or a portion of the Fund’s distributions may be comprised of ordinary income, capital gains and/or return of capital. Refer to Note 7 in the Notes to the Financial Statements.

^(f)	Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent month-end market price and NAV. Special distributions are not included in the calculation.

4 | Annual Report

Apollo Tactical Income Fund Inc.

Financial Data

December 31, 2021 (unaudited)


Portfolio Composition (as % of Current Market Value of Investment Securities)


Loans		73.9%
High-Yield Bonds		18.3%
Structured Products		6.7%
Equity/Other		1.1%


Portfolio Characteristics^(a)


Weighted Average Floating-Rate Spread		4.74%
Weighted Average Fixed-Rate Coupon		5.75%
Weighted Average Maturity (in years) (floating assets)		5.69
Weighted Average Maturity (in years) (fixed assets)		5.83
Weighted Average Modified Duration (in years) (fixed assets)		3.49
Weighted Average Modified Duration (in years)^(e)		4.28
Average Position Size by Issuer^(f)	$	3,709,245
Number of Issuers^(f)		100
Weighted Average S&P Rating^(g)		B
Weighted Average Rating Factor (Moody’s)^(g)		3,021


Credit Quality^(b)


A		1.1%
BBB		0.8%
BB		12.7%
B		58.8%
CCC+ or Lower		13.3%
Not Rated		13.3%


Top 5 Industries (as % of Current Market Value of Investment Securities)^(c)


Healthcare & Pharmaceuticals				12.8%
Telecommunications				10.8%
High Tech Industries				9.8%
Services: Business				6.7%
Aerospace & Defense				5.3%
Total				45.4%


Top 10 Issuers (as % of Current Market Value of Investment Securities)^(d)


Intelsat Jackson Holdings S.A.				6.2%
United Airlines, Inc.				2.4%
Gainwell Acquisition Corporation				2.4%
DCert Buyer, Inc.				2.3%
Peraton Corporation				2.1%
LBM Acquisition, LLC				2.1%
DTI Holdco, Inc.				2.0%
McGraw-Hill Education, Inc.				2.0%
LABL, Inc.				2.0%
Asurion, LLC				1.9%
Total				25.4%

^(a)	Averages based on par value of investment securities, except for the weighted average modified duration, which is based on market value.

^(b)

Credit quality is calculated as a percentage of fair value of investment securities at December 31, 2021. The quality ratings reflected were issued by S&P, an internationally recognized statistical rating organization. Credit quality ratings reflect the rating agency’s opinion of the credit quality of the underlying positions in the Fund’s portfolio and not that of the Fund itself. Credit quality ratings are subject to change.

^(c)

The industry classifications reported are from widely recognized market indexes or rating group indexes, and/or as defined by Fund management, with the primary source being Moody’s, an internationally recognized statistical rating organization. The Top 5 Industries table above excludes Structured Products which represents 6.7% of the portfolio as of December 31, 2021.

^(d)	Holdings are subject to change and are provided for informational purposes only.

^(e)	Excludes equity investments and warrants and includes fixed and floating rate assets.

^(f)	Excludes equity investments and warrants.

^(g)	Excludes securities with no rating or non-performing defaulted securities as of December 31, 2021.

Annual Report | 5

Apollo Tactical Income Fund Inc.

Fund Performance

December 31, 2021 (unaudited)

Apollo Tactical Income Fund Inc. (“AIF”) returned 8.44% on a net asset value per share basis and 12.86% on a market price per share basis for the year ending December 31, 2021, outperforming the S&P/LSTA Leveraged Loan Index, which returned 5.20% for the year. As of December 31, 2021, AIF held 73.9% of its fair value of investment securities in first and second lien leveraged loans, 18.3% in high-yield bonds, 6.7% in collateralized loan obligations (“CLOs”), and 1.1% in equities and other securities. In addition to credit selection, which also contributed to most of the outperformance in AIF, the fund’s allocation to CLOs also helped to enhance returns relative to the index (which does not contain CLOs). Additionally, AIF was also overweight CCC credits which helped to improve performance.


Performance Comparison


	YTD			5 Yr			Since Inception^(d)
AIF - Market Price		12.86	%^(a)		8.06	%^(a)(b)		5.62	%^(a)(b)
AIF - NAV		8.44	%^(a)		7.39	%^(a)(b)		7.09	%^(a)(b)
S&P/LSTA Leveraged Loan Index^(c)		5.20	%		4.27	%^(b)		4.08	%^(b)


Distributions^(e)


Current Monthly Distribution (per share)	$	0.090
Current Distribution Rate at Market Price^(f)		7.05	%
Current Distribution Rate at NAV^(f)		6.53	%

LOGO

^(a)

^(b)	Annualized.

^(c)	The S&P/LSTA Leveraged Loan Index is a broad index designed to reflect the performance of the U.S. dollar facilities in the leveraged loan market.

^(d)	Inception date February 25, 2013.

^(e)	All or a portion of the Fund’s distributions may be comprised of ordinary income, capital gains and/or return of capital. Refer to Note 7 in the Notes to the Financial Statements.

^(f)	Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent month-end market price and NAV. Special distributions are not included in the calculation.

6 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments

December 31, 2021



	Principal Amount ($)		Value ($)

Senior Loans - 147.1%^(a)

AEROSPACE & DEFENSE - 8.8%

Bleriot US Bidco Inc.
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.00% Floor), 4.22%, 10/30/26^(c)		5,280,768		5,283,408
Dynasty Acquisition Co., Inc.
First Lien Term Loan, (3M LIBOR + 3.50%, 0.00% Floor), 3.72%, 04/06/26^(c)		1,736,298		1,694,141
First Lien Term Loan B, (3M LIBOR + 3.50%, 0.00% Floor), 3.72%, 04/06/26^(c)		3,229,514		3,151,102
Peraton Corporation
First Lien Term Loan B, (1M LIBOR + 3.75%, 0.75% Floor), 4.50%, 02/01/28^(c)		7,743,465		7,760,036
Vertex Aerospace Services Corp.
First Lien Term Loan, (LIBOR + 4.00%, 0.75% Floor), 4.75%, 12/06/28^(b)(c)		4,651,282		4,650,119

				22,538,806


BANKING, FINANCE, INSURANCE & REAL ESTATE - 9.1%

Apex Group Treasury, LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 07/27/28^(c)		4,472,662		4,471,276
Asurion, LLC
Second Lien Term Loan B3, (1M LIBOR + 5.25%, 0.00% Floor), 5.35%, 01/31/28^(c)		3,396,944		3,411,805
Second Lien Term Loan B4, (1M LIBOR + 5.25%, 0.00% Floor), 5.35%, 01/20/29^(b)(c)		3,742,888		3,732,370
The Edelman Financial Center, LLC
First Lien Term Loan B, (1M LIBOR + 3.50%, 0.75% Floor), 4.25%, 04/07/28^(c)		5,262,231		5,265,862
Second Lien Term Loan, (1M LIBOR + 6.75%, 0.00% Floor), 6.85%, 07/20/26^(b)(c)		4,931,380		4,959,637
Washington Prime Group, L.P.
First Lien Term Loan, (1M LIBOR + 5.00%, 0.75% Floor), 5.75%, 10/20/25^(c)		1,500,000		1,518,000

				23,358,950


BEVERAGE, FOOD & TOBACCO - 3.0%

IRB Holding Corporation
First Lien Term Loan B, (3M LIBOR + 3.25%, 1.00% Floor), 4.25%, 12/15/27^(c)		3,713,133		3,718,350
Primary Products Finance LLC
First Lien Term Loan, (LIBOR + 4.00%, 0.50% Floor), 4.50%, 10/25/28^(b)(c)		3,843,318		3,853,733

				7,572,083



	Principal Amount ($)		Value ($)


CAPITAL EQUIPMENT - 4.2%

Madison Safety & Flow LLC
First Lien Term Loan, (SOFR + 3.75, 0.05% Floor), 3.80%, 12/14/28^(b)(c)		3,333,334		3,337,501
Pro Mach Group, Inc.
First Lien Term Loan B, (3M LIBOR + 4.00%, 1.00% Floor), 5.00%, 08/31/28^(c)		1,978,416		1,987,754
Safe Fleet Holdings, LLC
First Lien Term Loan, (1M LIBOR + 3.00%, 1.00% Floor), 4.00%, 02/03/25^(c)		3,995,277		3,981,732
Second Lien Term Loan, (1M LIBOR + 6.75%, 1.00% Floor), 7.75%, 02/02/26^(c)		1,403,846		1,399,466

				10,706,453


CHEMICALS, PLASTICS, & RUBBER - 7.7%

Archroma Finance SARL (Luxembourg)
First Lien Term Loan B2, (1M LIBOR + 4.25%, 0.00% Floor), 4.35%, 08/12/24^(c)(e)		3,915,098		3,892,273
Geon Performance Solutions, LLC
First Lien Term Loan B, (3M LIBOR + 4.75%, 0.75% Floor), 5.50%, 08/18/28^(b)(c)		2,834,027		2,862,368
LSF11 A5 Holdco, LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 10/15/28^(c)		7,058,530		7,061,459
Luxembourg Investment Company 428 SARL (Luxembourg)
First Lien Term Loan B, (SOFR + 5.00%, 0.50% Floor), 5.50%, 10/20/28^(b)(c)(e)		4,359,375		4,348,476
W.R. Grace Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 09/22/28^(c)		1,450,236		1,454,587

				19,619,163


CONSTRUCTION & BUILDING - 5.0%

Associated Asphalt Partners, LLC
First Lien Term Loan B, (1M LIBOR + 5.25%, 1.00% Floor), 6.25%, 04/05/24^(c)		6,741,568		5,949,434
Illuminate Merger Sub Corp.
First Lien Term Loan B, (3M LIBOR + 3.50%, 0.50% Floor), 4.00%, 07/21/28^(c)		3,829,787		3,805,257
Madison IAQ LLC
First Lien Term Loan, (6M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/21/28^(b)(c)		2,992,481		2,993,723

				12,748,414

See accompanying Notes to Financial Statements. | 7

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)

Senior Loans^(a) (continued)

CONSUMER GOODS: DURABLE - 0.9%

Mattress Firm, Inc.
First Lien Term Loan B, (6M LIBOR + 4.25%, 0.75% Floor), 5.00%, 09/25/28^(c)		2,322,537		2,309,473


CONSUMER GOODS: NON-DURABLE - 0.9%

ABG Intermediate Holdings 2 LLC
First Lien Term Loan, (SOFR + 3.50%, 0.15% Floor), 3.71%, 12/21/28^(b)(c)		523,410		521,448
Second Lien Term Loan, (SOFR + 6.00%, 0.00% Floor), 6.06%, 12/20/29^(b)(c)		1,710,576		1,719,129

				2,240,577


CONTAINERS, PACKAGING & GLASS - 8.6%

Anchor Glass Container Corp.
First Lien Term Loan, (3M LIBOR + 2.75%, 1.00% Floor), 3.75%, 12/07/23^(c)		3,572,301		3,101,668
First Lien Term Loan, (3M LIBOR + 5.00%, 1.00% Floor), 6.00%, 12/07/23^(c)		979,432		846,391
Berlin Packaging LLC
First Lien Term Loan B, (1M LIBOR + 3.75%, 0.50% Floor), 4.25%, 03/11/28^(c)		4,354,064		4,354,609
LABL, Inc.
First Lien Term Loan, (3M LIBOR + 5.00%, 0.50% Floor), 5.50%, 10/29/28^(c)		5,268,293		5,268,846
MAR Bidco SARL (Luxembourg)
First Lien Term Loan, (3M LIBOR + 4.25%, 0.50% Floor), 4.75%, 07/07/28^(c)(e)		2,828,646		2,833,356
Trident TPI Holdings, Inc.
First Lien Delayed Draw Term Loan B3, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 09/15/28^(c)		303,783		304,020
First Lien Term Loan B3, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 09/15/28^(c)		5,314,321		5,318,466

				22,027,356


ENERGY: OIL & GAS - 0.8%

Freeport LNG Investments, LLLP
First Lien Term Loan B, (LIBOR + 3.50%, 0.50% Floor), 4.00%, 12/21/28^(c)		2,125,560		2,107,960


ENVIRONMENTAL INDUSTRIES - 1.7%

Dispatch Acquisition Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 03/27/28^(c)		2,985,000		2,986,866
Trugreen Limited Partnership
First Lien Term Loan, (1M LIBOR + 4.00%, 0.75% Floor), 4.75%, 11/02/27^(c)		1,468,492		1,472,067

				4,458,933



	Principal Amount ($)		Value ($)


FOREST PRODUCTS & PAPER - 1.0%

Spa US Holdco, Inc. (Finland)
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 02/04/28^(c)(e)		2,690,531		2,697,257


HEALTHCARE & PHARMACEUTICALS - 18.0%

Azurity Pharmaceuticals, Inc.
First Lien Term Loan B, (3M LIBOR + 6.00%, 0.75% Floor), 6.75%, 09/20/27^(b)(c)		2,142,856		2,109,813
CHG Healthcare Services, Inc.
First Lien Term Loan, (3M LIBOR + 3.50%, 0.50% Floor), 4.00%, 09/29/28^(b)(c)		3,970,910		3,976,370
Curia Global, Inc.
First Lien Term Loan, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 08/30/26^(c)		1,474,690		1,478,377
Endo Luxembourg Finance Company I SARL
First Lien Term Loan, (3M LIBOR + 5.00%, 0.75% Floor), 5.75%, 03/27/28^(c)		6,229,088		6,074,544
Gainwell Acquisition Corporation
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 10/01/27^(c)		8,651,268		8,684,791
Loire Finco Luxembourg SARL (United Kingdom)
First Lien Term Loan B, (1M LIBOR + 3.75%, 0.75% Floor), 4.50%, 04/21/27^(c)(e)		1,985,037		1,980,075
LSCS Holdings, Inc.
First Lien Term Loan, (LIBOR + 4.50%, 0.50% Floor), 5.00%, 11/23/28^(b)(c)		2,041,884		2,044,947
Maravai Intermediate Holdings LLC
First Lien Term Loan B, (1M LIBOR + 3.75%, 1.00% Floor), 4.75%, 10/19/27^(c)		2,909,438		2,925,804
Medline Borrower, LP
First Lien Term Loan B, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 10/23/28^(c)		2,933,075		2,935,729
MPH Acquisition Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.50% Floor), 4.75%, 09/01/28^(c)		1,626,044		1,591,499
Pacira Biosciences, Inc.
First Lien Term Loan, (SOFR + 7.00%, 0.75% Floor), 7.75%, 12/07/26^(c)(d)		1,956,016		1,936,456
Phoenix Newco, Inc.
First Lien Term Loan, (1M LIBOR + 3.50%, 0.50% Floor), 4.00%, 11/15/28^(c)		2,425,898		2,429,245
Resonetics, LLC
First Lien Term Loan, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 04/28/28^(c)		3,990,000		3,994,988

8 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)

Senior Loans^(a) (continued)

HEALTHCARE & PHARMACEUTICALS (continued)

Sunshine Luxembourg VII SARL (Luxembourg)
First Lien Term Loan B3, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 10/01/26^(c)(e)		2,860,735		2,875,339
Women’s Care Holdings, Inc.
First Lien Term Loan, (3M LIBOR + 4.50%, 0.75% Floor), 5.25%, 01/15/28^(c)		1,097,089		1,096,815

				46,134,792


HIGH TECH INDUSTRIES - 16.5%

Atlas CC Acquisition Corp.
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 05/25/28^(c)		3,223,753		3,235,084
First Lien Term Loan C, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 05/25/28^(c)		655,679		657,983
DCert Buyer, Inc.
First Lien Term Loan, (1M LIBOR + 4.00%, 0.00% Floor), 4.10%, 10/16/26^(c)		6,460,833		6,456,795
Second Lien Term Loan, (1M LIBOR + 7.00%, 0.00% Floor), 7.10%, 02/19/29^(c)		2,427,401		2,437,511
Electronics for Imaging, Inc.
First Lien Term Loan, (1M LIBOR + 5.00%, 0.00% Floor), 5.10%, 07/23/26^(c)		2,992,366		2,932,519
Flexera Software LLC
First Lien Term Loan B, (3M/6M LIBOR + 3.75%, 0.75% Floor), 4.50%, 03/03/28^(c)		6,464,710		6,477,284
Greeneden U.S. Holdings II, LLC
First Lien Term Loan, (1M LIBOR + 4.00%, 0.75% Floor), 4.75%, 12/01/27^(c)		2,221,102		2,231,519
Imperva, Inc.
First Lien Term Loan, (3M LIBOR + 4.00%, 1.00% Floor), 5.00%, 01/12/26^(c)		4,680,926		4,680,552
Ivanti Software, Inc.
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 12/01/27^(c)		4,891,559		4,905,304
Riverbed Technology, Inc.
First Lien Exit Term Loan, (2.00% PIK), (3M LIBOR + 8.00%, 1.00% Floor), 9.00%, 12/07/26^(c)(f)		814,924		798,964
Sovos Compliance, LLC
First Lien Term Loan, (1M LIBOR + 4.50%, 0.50% Floor), 5.00%, 08/11/28^(c)		2,131,849		2,140,014
UKG, Inc.
First Lien Term Loan, (1M LIBOR + 3.75%, 0.00% Floor), 3.85%, 05/04/26^(c)		2,992,347		2,987,409
First Lien Term Loan, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 05/04/26^(c)		1,271,524		1,267,016



	Principal Amount ($)		Value ($)


HIGH TECH INDUSTRIES (continued)

VS Buyer, LLC
First Lien Term Loan, (1M LIBOR + 3.00%, 0.00% Floor), 3.09%, 02/28/27^(b)(c)		1,196,954		1,193,962

				42,401,916


HOTEL, GAMING & LEISURE - 3.3%

Caesars Resort Collection, LLC
First Lien Term Loan B1, (1M LIBOR + 3.50%, 0.00% Floor), 3.60%, 07/21/25^(c)		4,297,965		4,306,561
The Enterprise Development Authority
First Lien Term Loan, (1M LIBOR + 4.25%, 0.75% Floor), 5.00%, 02/28/28^(c)		2,093,656		2,094,535
Varsity Brands Holding Co., Inc.
First Lien Term Loan, (1M LIBOR + 3.50%, 1.00% Floor), 4.50%, 12/16/24^(c)		1,988,357		1,954,804

				8,355,900


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 4.2%

Advantage Sales & Marketing Inc.
First Lien Term Loan B1, (3M LIBOR + 4.50%, 0.75% Floor), 5.25%, 10/28/27^(c)		4,686,681		4,697,811
F & W Media, Inc.
First Lien Term Loan B1, (LIBOR + 6.50%, 1.50% Floor), 0.00%, 05/24/22^(c)(d)(g)(j)		347,024		—
First Lien Term Loan B2, (LIBOR + 10.00%, 1.50% Floor), 0.00%, 05/24/22^(c)(d)(g)(j)		1,076,345		—
McGraw-Hill Education, Inc.
First Lien Term Loan, (1M LIBOR + 4.75%, 0.50% Floor), 5.25%, 07/28/28^(c)		6,146,249		6,128,026

				10,825,837


MEDIA: BROADCASTING & SUBSCRIPTION - 4.2%

Anuvu Holdings 2, LLC
First Lien Delayed Draw Term Loan, (3M LIBOR + 7.00%, 1.00% Floor), 8.00%, 09/25/23^(c)(d)		60,351		58,842
First Lien Term Loan, (3M LIBOR + 8.00%, 1.00% Floor), 9.00%, 03/24/25^(c)		2,479,047		2,474,919
First Lien Term Loan, (6.75% PIK), (3M LIBOR + 8.25%, 1.00% Floor), 9.25%, 03/23/26^(c)(f)		1,939,784		1,648,817
Univision Communications Inc.
First Lien Term Loan, (1M LIBOR + 2.75%, 1.00% Floor), 3.75%, 03/15/24^(b)(c)		3,400,000		3,405,304
William Morris Endeavor Entertainment, LLC
First Lien Term Loan B, (1M LIBOR + 2.75%, 0.00% Floor), 2.86%, 05/18/25^(c)		3,322,560		3,259,016

				10,846,898

See accompanying Notes to Financial Statements. | 9

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)

Senior Loans^(a) (continued)

RETAIL - 4.5%

Charming Charlie, LLC
First Lien Delayed Draw Term Loan, 0.00%, 05/28/22^(d)(g)(h)(j)		196,013		27,528
First Lien Term Loan A, (LIBOR + 5.00%, 1.00% Floor), 0.00%, 04/24/23^(c)(d)(g)(j)		868,743		—
First Lien Term Loan B, (LIBOR + 1.00%, 1.00% Floor), 0.00%, 04/24/23^(c)(d)(g)(j)		1,063,663		—
First Lien Vendor Term Loan, 0.00%, 05/15/20^(d)(g)(h)(j)		35,263		4,952
Empire Today, LLC
First Lien Term Loan, (3M LIBOR + 5.00%, 0.75% Floor), 5.75%, 03/24/28^(c)		2,761,726		2,718,575
Petco Health and Wellness Company, Inc.
First Lien Term Loan, (3M LIBOR + 3.25%, 0.75% Floor), 4.00%, 03/03/28^(c)		3,996,061		3,996,361
PetSmart, Inc.
First Lien Term Loan, (6M LIBOR + 3.75%, 0.75% Floor), 4.50%, 02/11/28^(c)		4,786,788		4,800,263

				11,547,679


SERVICES: BUSINESS - 21.5%

Allied Universal Holdco LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 05/12/28^(c)		7,998,135		7,982,179
CareStream Health, Inc.
First Lien Term Loan, (6M LIBOR + 6.75%, 1.00% Floor), 7.75%, 05/08/23^(b)(c)		121,839		122,423
Second Lien Term Loan, (8.0% PIK), (6M LIBOR + 12.50%, 1.00% Floor), 13.50%, 08/08/23^(c)(d)(f)		2,529,544		2,080,550
Deerfield Dakota Holding, LLC
First Lien Term Loan, (1M LIBOR + 3.75%, 1.00% Floor), 4.75%, 04/09/27^(c)		4,334,407		4,344,918
DTI Holdco, Inc.
First Lien Term Loan B, (3M LIBOR + 4.75%, 1.00% Floor), 5.75%, 09/29/23^(c)		9,116,261		8,981,431
Electro Rent Corp.
First Lien Term Loan, (3M LIBOR + 5.00%, 1.00% Floor), 6.00%, 01/31/24^(c)		2,796,072		2,803,510
Endure Digital, Inc.
First Lien Term Loan B, (6M LIBOR + 3.50%, 0.75% Floor), 4.25%, 02/10/28^(c)		3,860,912		3,833,769
Ensemble RCM, LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.00% Floor), 3.88%, 08/03/26^(c)		4,345,780		4,349,843
eResearchTechnology, Inc.
First Lien Term Loan B, (1M LIBOR + 4.50%, 1.00% Floor), 5.50%, 02/04/27^(c)		1,128,950		1,134,205



	Principal Amount ($)		Value ($)


SERVICES: BUSINESS (continued)

Garda World Security Corporation (Canada)
First Lien Term Loan B2, (1M LIBOR + 4.25%, 0.00% Floor), 4.36%, 10/30/26^(c)(e)		8,115,963		8,115,152
Ingenovis Health, Inc.
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 03/06/28^(b)(c)		3,993,960		3,996,476
Solera, LLC
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 06/02/28^(c)		3,695,151		3,699,567
Second Lien Term Loan, (1M LIBOR + 8.00%, 1.00% Floor), 9.00%, 06/04/29^(c)		3,510,563		3,567,610

				55,011,633


SERVICES: CONSUMER - 0.9%

2U, Inc.
First Lien Term Loan, (1M LIBOR + 5.75%, 0.75% Floor), 6.50%, 12/30/24^(c)		2,437,750		2,431,656


TELECOMMUNICATIONS - 14.4%

Flight Bidco, Inc.
First Lien Term Loan, (1M LIBOR + 3.50%, 0.00% Floor), 3.60%, 07/23/25^(c)		3,742,042		3,704,622
Frontier Communications Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 05/01/28^(c)		2,238,639		2,240,318
Intelsat Jackson Holdings S.A. (Luxembourg)
First Lien DIP Term Loan, (3M LIBOR + 4.75%, 1.00% Floor), 5.75%, 07/13/22^(c)(e)		3,595,469		3,601,096
First Lien Exit Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 2.75%, 12/07/22^(b)(c)(d)(e)		3,700,000		3,681,500
First Lien Exit Term Loan B, (LIBOR + 4.25%, 0.50% Floor), 4.75%, 12/08/28^(b)(c)(d)(e)		3,700,000		3,672,250
First Lien Term Loan, (Prime + 5.50%, 2.00% Floor), 8.75%, 01/02/24^(c)(e)(g)		5,444,878		5,449,125
First Lien Term Loan B, (Prime + 4.75%, 2.00% Floor), 8.00%, 11/27/23^(c)(e)(g)		1,188,001		1,188,244
First Lien Term Loan B5, 8.63%, 01/02/24^(e)(g)(h)		4,984,426		4,991,429
Orbcomm, Inc.
First Lien Term Loan, (1M/3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 09/01/28^(c)		1,620,938		1,622,964
U.S. TelePacific Corp.
First Lien Term Loan B, (6M LIBOR + 6.00%, 1.00% Floor), 7.00%, 05/02/23^(c)		5,765,795		4,358,422
Zacapa SARL (Luxembourg)
First Lien Term Loan B, (3M LIBOR + 4.50%, 0.00% Floor), 4.72%, 07/02/25^(c)(e)		2,408,865		2,416,393

				36,926,363

10 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)

Senior Loans^(a) (continued)

TRANSPORTATION: CONSUMER - 5.7%

The Hertz Corporation
First Lien Term Loan B, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/30/28^(c)		3,231,507		3,238,471
First Lien Term Loan C, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/30/28^(c)		612,075		613,394
Travel Leaders Group, LLC
First Lien Term Loan B, (1M LIBOR + 4.00%, 0.00% Floor), 4.10%, 01/25/24^(c)		3,976,781		3,648,299
United Airlines, Inc.
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 04/21/28^(c)		6,999,639		7,040,587

				14,540,751


WHOLESALE - 2.2%

LBM Acquisition, LLC
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 12/17/27^(b)(c)		5,568,500		5,527,182


Total Senior Loans (Cost $381,316,673)				376,936,032


Corporate Notes and Bonds - 2.3%

AEROSPACE & DEFENSE - 0.4%

Transdigm, Inc. 8.00%, 12/15/25^(h)(i)		1,068,000		1,128,059


BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.3%

KCF Puerto Rico, LLC 0.00%, 06/28/28^(d)(j)		1,328,370		768,411


ENERGY: OIL & GAS - 0.8%

Moss Creek Resources Holdings, Inc. 7.50%, 01/15/26^(h)(i)		834,000		780,657
10.50%, 05/15/27^(h)(i)		1,187,000		1,198,609

				1,979,266


METALS & MINING - 0.0%

ERP Iron Ore, LLC
LIBOR + 8.00%, 0.00%, 12/31/19^(d)(g)(j)		18,879		—
Magnetation, LLC / Mag Finance Corp. 0.00%, 05/15/18^{(d)(g)(h)(i)(j)}		639,000		—

				—


TELECOMMUNICATIONS - 0.8%

Frontier Communications Holdings, LLC 5.00%, 05/01/28^(h)(i)		2,000,000		2,063,620


Total Corporate Notes and Bonds (Cost $4,948,510)				5,939,356



	Quantity		Value ($)

Common Stocks - 1.1%

AUTOMOTIVE - 0.1%

APC Parent, Inc.^(d)(j)		241,972		114,671


ENERGY: OIL & GAS - 0.0%

RDV Resources, Inc.^(d)(j)		28,252		—


HIGH TECH INDUSTRIES - 0.2%

Riverbed Holdings, Inc.^(j)		32,644		435,252


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%

Acosta, Inc.^(d)(j)		3,133		25,399
F & W Media, Inc.^(d)(j)		9,511		—

				25,399


MEDIA: BROADCASTING & SUBSCRIPTION - 0.8%

Anuvu Corp.^(d)(j)		108,418		2,161,855


RETAIL - 0.0%

Charming Charlie, LLC^(d)(j)		8,890,519		—


Total Common Stocks (Cost $4,570,541)				2,737,177


Preferred Stocks - 0.6%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.4%

Somers Group Holdings Ltd. (Bermuda) (LIBOR + 6.68%, 1.00% Floor), 7.68%^(d)(e)		37,863		960,774


HIGH TECH INDUSTRIES - 0.2%

Riverbed Holdings, Inc.		22,342		435,669


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%

Acosta, Inc., (14.50% PIK)^(d)(f)(h)		3,353		156,027


Total Preferred Stocks (Cost $1,644,912)				1,552,470


Warrants - 0.0%

SERVICES: BUSINESS - 0.0%

CareStream Health, Inc.^(d)(j)		47		—


Total Warrants (Cost $0)				—


Total Investments-151.1%				387,165,035
(Cost of $392,480,636)
Other Assets & Liabilities, Net-(0.4)%				(1,064,787	)
Loan Outstanding-(50.7)%^(k)(l)				(129,899,409	)


Net Assets (Applicable to Common Shares)-100.0%				256,200,839

See accompanying Notes to Financial Statements. | 11

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2021

^(a)

“Senior 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 December 31, 2021. 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.

^(b)	All or a portion of this Senior Loan position has not settled. Full contract rates do not take effect until settlement date and therefore are subject to change.

^(c)

The interest rate on this Senior Loan is subject to a base lending rate plus a spread. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) or the Secured Overnight Financing Rate (“SOFR”) and secondarily the prime rate offered by one or more major U.S. banks (“Prime”). The interest rate is subject to a minimum floor, which may be less than or greater than the prevailing period end LIBOR/SOFR/Prime rate. As of December 31, 2021, the 1, 2, 3 and 6 month LIBOR rates were 0.10%, 0.15%, 0.21% and 0.34%, respectively, the 30, 90 and 180 day average SOFR rates were 0.05%, 0.05% and 0.05%, respectively, and the Prime lending rate was 3.25%. Senior Loans may contain multiple contracts of the same issuer which may be subject to base lending rates of LIBOR, SOFR and Prime (“Variable”) in addition to the stated spread.

^(d)	Fair Value Level 3 security.

^(e)	Foreign issuer traded in U.S. dollars.

^(f)	Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amount/share quantity.

^(g)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

^(h)	Fixed rate asset.

⁽ⁱ⁾	Securities exempt from registration pursuant to Rule 144A under the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. At December 31, 2021, these securities amounted to $5,170,945, or 2.0% of net assets.

^(j)	Non-income producing asset.

^(k)	The Fund has granted a security interest in substantially all of its assets in the event of default under the credit facility.

^(l)	Principal of $130,000,000 less unamortized deferred financing costs of $100,591.

12 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments

December 31, 2021



	Principal Amount ($)		Value ($)
Senior Loans - 113.0%^(a)

AEROSPACE & DEFENSE - 6.4%

Dynasty Acquisition Co., Inc.
First Lien Term Loan, (3M LIBOR + 3.50%, 0.00% Floor), 3.72%, 04/06/26^(c)		1,038,781		1,013,560
First Lien Term Loan B, (3M LIBOR + 3.50%, 0.00% Floor), 3.72%, 04/06/26^(c)		1,932,133		1,885,221
Peraton Corporation
First Lien Term Loan B, (1M LIBOR + 3.75%, 0.75% Floor), 4.50%, 02/01/28^(c)		7,743,465		7,760,036
Vertex Aerospace Services Corp.
First Lien Term Loan, (LIBOR + 4.00%, 0.75% Floor), 4.75%, 12/06/28^(b)(c)		4,651,282		4,650,119

				15,308,936


BANKING, FINANCE, INSURANCE & REAL ESTATE - 5.7%

Apex Group Treasury, LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 07/27/28^(b)(c)		498,750		498,596
Asurion, LLC
First Lien Term Loan B9, (1M LIBOR + 3.25%, 0.00% Floor), 3.35%, 07/31/27^(c)		1,994,975		1,985,249
Second Lien Term Loan B3, (1M LIBOR + 5.25%, 0.00% Floor), 5.35%, 01/31/28^(c)		2,102,870		2,112,070
Second Lien Term Loan B4, (1M LIBOR + 5.25%, 0.00% Floor), 5.35%, 01/20/29^(b)(c)		3,036,961		3,028,427
The Edelman Financial Center, LLC
First Lien Term Loan B, (1M LIBOR + 3.50%, 0.75% Floor), 4.25%, 04/07/28^(c)		2,128,538		2,130,007
Second Lien Term Loan, (1M LIBOR + 6.75%, 0.00% Floor), 6.85%, 07/20/26^(b)(c)		2,428,369		2,442,284
Washington Prime Group, L.P.
First Lien Term Loan, (1M LIBOR + 5.00%, 0.75% Floor), 5.75%, 10/20/25^(c)		1,500,000		1,518,000

				13,714,633


BEVERAGE, FOOD & TOBACCO - 2.5%

Primary Products Finance LLC
First Lien Term Loan, (LIBOR + 4.00%, 0.50% Floor), 4.50%, 10/25/28^(b)(c)		3,843,318		3,853,734
Ultimate Baked Goods Midco LLC
First Lien Revolving Term Loan, (1M/3M LIBOR + 6.25%, 1.00% Floor) 7.25%, 08/13/27^(c)(d)		130,541		127,329
First Lien Term Loan, (1M LIBOR + 6.25%, 1.00% Floor), 7.25%, 08/13/27^(c)(d)		2,051,351		2,000,683

				5,981,746



	Principal Amount ($)		Value ($)

CAPITAL EQUIPMENT - 3.9%

Madison Safety & Flow LLC
First Lien Term Loan, (SOFR + 3.75%, 0.05% Floor) 3.80%, 12/14/28^(b)(c)		3,333,332		3,337,499
Pro Mach Group, Inc.
First Lien Term Loan B, (3M LIBOR + 4.00%, 1.00% Floor), 5.00%, 08/31/28^(c)		1,978,416		1,987,754
Safe Fleet Holdings, LLC
First Lien Term Loan, (1M LIBOR + 3.00%, 1.00% Floor), 4.00%, 02/03/25^(c)		2,709,646		2,700,460
Second Lien Term Loan, (1M LIBOR + 6.75%, 1.00% Floor), 7.75%, 02/02/26^(c)		1,403,846		1,399,466

				9,425,179


CHEMICALS, PLASTICS, & RUBBER - 6.0%

Geon Performance Solutions, LLC
First Lien Term Loan B, (3M LIBOR + 4.75%, 0.75% Floor), 5.50%, 08/18/28^(b)(c)		2,834,027		2,862,368
LSF11 A5 Holdco, LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 10/15/28^(c)		5,609,254		5,611,581
Luxembourg Investment Company 428 SARL (Luxembourg)
First Lien Term Loan B, (SOFR + 5.00%, 0.50% Floor) 5.50%, 10/20/28^(b)(c)(e)		4,359,375		4,348,476
W.R. Grace Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 09/22/28^(c)		1,450,236		1,454,587

				14,277,012


CONSTRUCTION & BUILDING - 3.2%

Associated Asphalt Partners, LLC
First Lien Term Loan B, (1M LIBOR + 5.25%, 1.00% Floor), 6.25%, 04/05/24^(c)		6,528,327		5,761,249
Madison IAQ LLC
First Lien Term Loan, (6M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/21/28^(b)(c)		1,994,987		1,995,815

				7,757,064


CONSUMER GOODS: DURABLE - 1.0%

Mattress Firm, Inc.
First Lien Term Loan B, (6M LIBOR + 4.25%, 0.75% Floor), 5.00%, 09/25/28^(c)		2,322,537		2,309,473


CONSUMER GOODS: NON-DURABLE - 1.0%

ABG Intermediate Holdings 2 LLC
First Lien Term Loan, (SOFR + 3.50%, 0.15% Floor), 3.71%, 12/21/28^(b)(c)		523,410		521,447

See accompanying Notes to Financial Statements. | 13

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)
Senior Loans^(a) (continued)

CONSUMER GOODS: NON-DURABLE (continued)

ABG Intermediate Holdings 2 LLC
Second Lien Term Loan, (SOFR + 6.00%, 0.00% Floor), 6.06%, 12/20/29^(b)(c)		1,710,576		1,719,129

				2,240,576


CONTAINERS, PACKAGING & GLASS - 6.1%

Anchor Glass Container Corp.
First Lien Term Loan, (3M LIBOR + 2.75%, 1.00% Floor), 3.75%, 12/07/23^(c)		3,405,322		2,956,688
First Lien Term Loan, (3M LIBOR + 5.00%, 1.00% Floor), 6.00%, 12/07/23^(c)		910,786		787,069
LABL, Inc.
First Lien Term Loan, (3M LIBOR + 5.00%, 0.50% Floor), 5.50%, 10/29/28^(b)(c)		5,268,293		5,268,846
Trident TPI Holdings, Inc.
First Lien Delayed Draw Term Loan B3, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 09/15/28^(c)		303,783		304,020
First Lien Term Loan B3, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 09/15/28^(c)		5,314,321		5,318,467

				14,635,090


ENERGY: OIL & GAS - 0.9%

Freeport LNG Investments, LLLP
First Lien Term Loan B, (LIBOR + 3.50%, 0.50% Floor), 4.00%, 12/21/28^(c)		2,125,560		2,107,960


ENVIRONMENTAL INDUSTRIES - 1.9%

Dispatch Acquisition Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 03/27/28^(c)		2,985,000		2,986,866
Trugreen Limited Partnership
First Lien Term Loan, (1M LIBOR + 4.00%, 0.75% Floor), 4.75%, 11/02/27^(c)		1,468,492		1,472,067

				4,458,933


FOREST PRODUCTS & PAPER - 1.1%

Spa US Holdco, Inc. (Finland)
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 02/04/28^(c)(e)		2,690,531		2,697,257


HEALTHCARE & PHARMACEUTICALS - 16.0%

Azurity Pharmaceuticals, Inc.
First Lien Term Loan B, (3M LIBOR + 6.00%, 0.75% Floor), 6.75%, 09/20/27^(c)		2,714,284		2,672,430
Endo Luxembourg Finance Company I SARL
First Lien Term Loan, (3M LIBOR + 5.00%, 0.75% Floor), 5.75%, 03/27/28^(c)		7,197,581		7,019,008



	Principal Amount ($)		Value ($)

HEALTHCARE & PHARMACEUTICALS (continued)

Gainwell Acquisition Corporation
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 10/01/27^(c)		8,651,268		8,684,791
Inovalon Holdings, Inc.
First Lien Term Loan, (LIBOR + 6.25%, 0.75% Floor), 7.00%, 11/24/28^(c)(d)		6,179,577		6,025,088
Second Lien Term Loan, (LIBOR + 10.50%, 0.75 Floor), 11.25%, 11/24/33^(c)(d)		100,000		97,000
LSCS Holdings, Inc.
First Lien Term Loan, (LIBOR + 4.50%, 0.50% Floor), 5.00%, 11/23/28^(b)(c)		2,041,884		2,044,947
Maravai Intermediate Holdings LLC
First Lien Term Loan B, (1M LIBOR + 3.75%, 1.00% Floor), 4.75%, 10/19/27^(c)		2,909,438		2,925,804
MPH Acquisition Holdings, LLC
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.50% Floor), 4.75%, 09/01/28^(c)		1,490,541		1,458,874
Pacira Biosciences, Inc.
First Lien Term Loan, (SOFR + 7.00%, 0.75% Floor), 7.75%, 12/07/26^(c)(d)		1,956,016		1,936,456
Resonetics, LLC
First Lien Term Loan, (3M LIBOR + 4.00%, 0.75% Floor), 4.75%, 04/28/28^(c)		4,239,375		4,244,674
Women’s Care Holdings, Inc.
First Lien Term Loan, (3M LIBOR + 4.50%, 0.75% Floor), 5.25%, 01/15/28^(c)		1,097,089		1,096,815

				38,205,887


HIGH TECH INDUSTRIES - 13.7%

Atlas CC Acquisition Corp.
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 05/25/28^(c)		3,223,753		3,235,085
First Lien Term Loan C, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 05/25/28^(c)		655,679		657,983
DCert Buyer, Inc.
First Lien Term Loan, (1M LIBOR + 4.00%, 0.00% Floor), 4.10%, 10/16/26^(c)		4,465,909		4,463,118
Second Lien Term Loan, (1M LIBOR + 7.00%, 0.00% Floor), 7.10%, 02/19/29^(c)		3,933,068		3,949,449
Electronics for Imaging, Inc.
First Lien Term Loan, (1M LIBOR + 5.00%, 0.00% Floor), 5.10%, 07/23/26^(c)		1,994,911		1,955,013
Flexera Software LLC
First Lien Term Loan B, (3M/6M LIBOR + 3.75%, 0.75% Floor), 4.50%, 03/03/28^(c)		4,959,151		4,968,797

14 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)
Senior Loans^(a) (continued)

HIGH TECH INDUSTRIES (continued)

Imperva, Inc.
First Lien Term Loan, (3M LIBOR + 4.00%, 1.00% Floor), 5.00%, 01/12/26^(b)(c)		3,834,733		3,834,426
Ivanti Software, Inc.
First Lien Term Loan B, (3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 12/01/27^(c)		4,891,559		4,905,304
Riverbed Technology, Inc.
First Lien Exit Term Loan, (2.00% PIK), (3M LIBOR + 8.00%, 1.00% Floor), 9.00%, 12/07/26^(c)(f)		727,611		713,360
Sovos Compliance, LLC
First Lien Term Loan, (1M LIBOR + 4.50%, 0.50% Floor), 5.00%, 08/11/28^(c)		2,131,849		2,140,014
UKG, Inc.
First Lien Term Loan, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 05/04/26^(c)		1,271,524		1,267,016
VS Buyer, LLC
First Lien Term Loan, (1M LIBOR + 3.00%, 0.00% Floor), 3.09%, 02/28/27^(b)(c)		797,970		795,975

				32,885,540


HOTEL, GAMING & LEISURE - 3.0%

Caesars Resort Collection, LLC
First Lien Term Loan B1, (1M LIBOR + 3.50%, 0.00% Floor), 3.60%, 07/21/25^(c)		3,219,928		3,226,368
The Enterprise Development Authority
First Lien Term Loan, (1M LIBOR + 4.25%, 0.75% Floor), 5.00%, 02/28/28^(c)		2,093,656		2,094,535
Varsity Brands Holding Co., Inc.
First Lien Term Loan, (1M LIBOR + 3.50%, 1.00% Floor), 4.50%, 12/16/24^(c)		1,988,357		1,954,804

				7,275,707


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 3.5%

Advantage Sales & Marketing Inc.
First Lien Term Loan B1, (3M LIBOR + 4.50%, 0.75% Floor), 5.25%, 10/28/27^(c)		2,343,341		2,348,907
F & W Media, Inc.
First Lien Term Loan B1, (LIBOR + 6.50%, 1.50% Floor), 0.00%, 05/24/22^(c)(d)(g)(j)		347,024		—
First Lien Term Loan B2, (LIBOR + 10.00%, 1.50% Floor), 0.00%, 05/24/22^(c)(d)(g)(j)		1,076,345		—
McGraw-Hill Education, Inc.
First Lien Term Loan, (1M LIBOR + 4.75%, 0.50% Floor), 5.25%, 07/28/28^(c)		6,146,249		6,128,025

				8,476,932



	Principal Amount ($)		Value ($)

MEDIA: BROADCASTING & SUBSCRIPTION - 2.1%

Anuvu Holdings 2, LLC
First Lien Delayed Draw Term Loan, (3M LIBOR + 7.00%, 1.00% Floor), 8.00%, 09/25/23^(c)(d)		57,117		55,689
First Lien Term Loan, (3M LIBOR + 8.00%, 1.00% Floor), 9.00%, 03/24/25^(c)		2,346,207		2,342,301
First Lien Term Loan, (6.75% PIK), (3M LIBOR + 8.25%, 1.00% Floor), 9.25%, 03/23/26^(c)(f)		1,835,841		1,560,465
William Morris Endeavor Entertainment, LLC
First Lien Term Loan B, (1M LIBOR + 2.75%, 0.00% Floor), 2.86%, 05/18/25^(c)		1,176,453		1,153,953

				5,112,408


RETAIL - 3.0%

Charming Charlie, LLC
First Lien Delayed Draw Term Loan, 0.00%, 05/28/22^(d)(g)(h)(j)		59,069		8,296
First Lien Term Loan A, (LIBOR + 5.00%, 1.00% Floor), 0.00%, 04/24/23^(c)(d)(g)(j)		261,799		—
First Lien Term Loan B, (LIBOR + 1.00%, 1.00% Floor), 0.00%, 04/24/23^(c)(d)(g)(j)		320,539		—
First Lien Vendor Term Loan, 0.00%, 05/15/20^(d)(g)(h)(j)		10,627		1,492
Empire Today, LLC
First Lien Term Loan, (3M LIBOR + 5.00%, 0.75% Floor), 5.75%, 03/24/28^(c)		2,761,726		2,718,574
PetSmart, Inc.
First Lien Term Loan, (6M LIBOR + 3.75%, 0.75% Floor), 4.50%, 02/11/28^(c)		4,451,629		4,464,161

				7,192,523


SERVICES: BUSINESS - 9.4%

Allied Universal Holdco LLC
First Lien Term Loan, (3M LIBOR + 3.75%, 0.50% Floor), 4.25%, 05/12/28^(c)		3,087,198		3,081,039
CareStream Health, Inc.
First Lien Term Loan, (6M LIBOR + 6.75%, 1.00% Floor), 7.75%, 05/08/23^(b)(c)		56,852		57,125
Second Lien Term Loan, (8.00% PIK), (6M LIBOR + 12.50%, 1.00% Floor), 13.50%, 08/08/23^(c)(d)(f)		1,180,326		970,818
Deerfield Dakota Holding, LLC
First Lien Term Loan, (1M LIBOR + 3.75%, 1.00% Floor), 4.75%, 04/09/27^(c)		926,631		928,878
DTI Holdco, Inc.
First Lien Term Loan B, (3M LIBOR + 4.75%, 1.00% Floor), 5.75%, 09/29/23^(c)		7,599,584		7,487,186

See accompanying Notes to Financial Statements. | 15

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)
Senior Loans^(a) (continued)

SERVICES: BUSINESS (continued)

Endure Digital, Inc.
First Lien Term Loan B, (6M LIBOR + 3.50%, 0.75% Floor), 4.25%, 02/10/28^(c)		3,860,912		3,833,770
eResearchTechnology, Inc.
First Lien Term Loan B, (1M LIBOR + 4.50%, 1.00% Floor), 5.50%, 02/04/27^(c)		1,128,950		1,134,205
Solera, LLC
First Lien Term Loan B, (3M LIBOR + 4.00%, 0.50% Floor), 4.50%, 06/02/28^(c)		1,600,401		1,602,314
Second Lien Term Loan, (1M LIBOR + 8.00%, 1.00% Floor), 9.00%, 06/04/29^(c)		3,268,689		3,321,805

				22,417,140


SERVICES: CONSUMER - 1.3%

Mavis Tire Express Services Corp.
First Lien Term Loan B, (1M LIBOR + 4.00%, 0.75% Floor), 4.75%, 05/04/28^(b)(c)		2,992,481		2,999,035


TELECOMMUNICATIONS - 14.1%

Flight Bidco, Inc.
First Lien Term Loan, (1M LIBOR + 3.50%, 0.00% Floor), 3.60%, 07/23/25^(c)		3,425,310		3,391,057
Intelsat Jackson Holdings S.A. (Luxembourg)
First Lien DIP Term Loan, (3M LIBOR + 4.75%, 1.00% Floor), 5.75%, 07/13/22^(c)(e)		3,636,873		3,642,565
First Lien Exit Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 2.75%, 12/07/22^(b)(c)(d)(e)		3,500,000		3,482,500
First Lien Exit Term Loan B, (LIBOR + 4.25%, 0.50% Floor), 4.75%, 12/08/28^(b)(c)(d)(e)		3,500,000		3,473,750
First Lien Term Loan, (Prime + 5.50%, 2.00% Floor), 8.75%, 01/02/24^(c)(e)(g)		5,735,607		5,740,080
First Lien Term Loan B, (Prime + 4.75%, 2.00% Floor), 8.00%, 11/27/23^(c)(e)(g)		1,188,001		1,188,244
First Lien Term Loan B5, 8.63%, 01/02/24^(e)(g)(h)		5,056,202		5,063,306
Orbcomm, Inc.
First Lien Term Loan, (1M/3M LIBOR + 4.25%, 0.75% Floor), 5.00%, 09/01/28^(c)		1,620,938		1,622,964
U.S. TelePacific Corp.
First Lien Term Loan B, (6M LIBOR + 6.00%, 1.00% Floor), 7.00%, 05/02/23^(c)		5,765,795		4,358,423
Zacapa SARL (Luxembourg)
First Lien Term Loan B, (3M LIBOR + 4.50%, 0.00% Floor), 4.72%, 07/02/25^(c)(e)		1,665,208		1,670,412

				33,633,301



	Principal Amount ($)		Value ($)

TRANSPORTATION: CONSUMER - 5.2%

The Hertz Corporation
First Lien Term Loan B, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/30/28^(c)		3,231,507		3,238,471
First Lien Term Loan C, (1M LIBOR + 3.25%, 0.50% Floor), 3.75%, 06/30/28^(c)		612,075		613,394
Travel Leaders Group, LLC
First Lien Term Loan B, (1M LIBOR + 4.00%, 0.00% Floor), 4.10%, 01/25/24^(c)		3,976,781		3,648,299
United Airlines, Inc.
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 04/21/28^(c)		4,915,389		4,944,145

				12,444,309


WHOLESALE - 2.0%

LBM Acquisition, LLC
First Lien Term Loan B, (3M LIBOR + 3.75%, 0.75% Floor), 4.50%, 12/17/27^(b)(c)		4,771,578		4,736,172


Total Senior Loans (Cost $273,894,721)				270,292,813


Corporate Notes and Bonds - 28.0%

AEROSPACE & DEFENSE - 1.8%

Transdigm, Inc. 8.00%, 12/15/25^(h)(i)		1,068,000		1,128,059
6.25%, 03/15/26^(h)(i)		3,000,000		3,121,920

				4,249,979


AUTOMOTIVE - 1.4%

Carvana Co. 5.88%, 10/01/28^(h)(i)		1,000,000		997,655
4.88%, 09/01/29^(h)(i)		2,527,000		2,410,632

				3,408,287


BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.1%

Alliant Holdings Intermediate, LLC 5.88%, 11/01/29^(h)(i)		2,000,000		2,037,640
KCF Puerto Rico, LLC 0.00%, 06/28/28^(d)(j)		1,226,187		709,303

				2,746,943


BEVERAGE, FOOD & TOBACCO - 0.9%

JBS, S.A. 5.50%, 01/15/30^(h)(i)		2,000,000		2,178,360


CAPITAL EQUIPMENT - 0.9%

Clark Equipment Company (Republic of Korea) 5.88%, 06/01/25^(e)(h)(i)		2,000,000		2,083,370


CHEMICALS, PLASTICS, & RUBBER - 1.3%

LSF11 A5 HoldCo, LLC 6.63%, 10/15/29^(h)(i)		1,000,000		986,405
W.R. Grace & Co. 4.88%, 06/15/27^(h)(i)		2,000,000		2,056,760

				3,043,165

16 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Principal Amount ($)		Value ($)
Corporate Notes and Bonds (continued)

CONTAINERS, PACKAGING & GLASS - 0.9%

LABL, Inc.
5.88%, 11/01/28^(h)(i)		1,000,000		1,032,500
8.25%, 11/01/29^(h)(i)		1,000,000		1,007,425

				2,039,925


ENERGY: OIL & GAS - 1.2%

Moss Creek Resources Holdings, Inc.
7.50%, 01/15/26^(h)(i)		836,000		782,530
10.50%, 05/15/27^(h)(i)		2,089,000		2,109,430

				2,891,960


HEALTHCARE & PHARMACEUTICALS - 3.5%

Bausch Health Companies, Inc. 5.00%, 01/30/28^(h)(i)		2,000,000		1,843,150
Encompass Health Corp.
4.75%, 02/01/30^(h)		3,651,000		3,765,915
4.63%, 04/01/31^(h)		1,349,000		1,374,652
RP Escrow Issuer, LLC
5.25%, 12/15/25^(h)(i)		1,463,000		1,477,732

				8,461,449


HIGH TECH INDUSTRIES - 0.9%

SS&C Technologies, Inc.
5.50%, 09/30/27^(h)(i)		2,000,000		2,092,410


HOTEL, GAMING & LEISURE - 1.7%

Churchill Downs, Inc.
5.50%, 04/01/27^(h)(i)		2,000,000		2,062,000
Life Time, Inc.
5.75%, 01/15/26^(h)(i)		2,000,000		2,072,350

				4,134,350


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 2.3%

Advantage Sales & Marketing Inc. 6.50%, 11/15/28^(h)(i)		2,121,000		2,225,279
McGraw-Hill Education, Inc.
5.75%, 08/01/28^(h)(i)		1,280,000		1,269,139
Outfront Media Capital, LLC
5.00%, 08/15/27^(h)(i)		2,000,000		2,049,080

				5,543,498


MEDIA: BROADCASTING & SUBSCRIPTION - 2.1%

CSC Holdings, LLC 5.75%, 01/15/30^(h)(i)		5,000,000		4,991,075


METALS & MINING - 0.0%

ERP Iron Ore, LLC
LIBOR + 8.00%, 0.00%, 12/31/19^(d)(g)(j)		86,775		—
Magnetation, LLC / Mag Finance Corp.
0.00%, 05/15/18^{(d)(g)(h)(i)(j)}		2,937,000		—

				—


RETAIL - 0.9%

PetSmart, Inc. 7.75%, 02/15/29^(h)(i)		2,000,000		2,176,030



	Principal Amount ($)		Value ($)

SERVICES: BUSINESS - 0.9%

II-VI Incorporated 5.00%, 12/15/29^(h)(i)		2,000,000		2,046,600


SERVICES: CONSUMER - 0.8%

Mavis Tire Express Services Corp. 6.50%, 05/15/29^(h)(i)		2,000,000		1,967,190


TELECOMMUNICATIONS - 2.5%

Lumen Technologies, Inc. 4.00%, 02/15/27^(h)(i)		3,000,000		3,047,400
4.25%, 07/01/28^(h)(i)		3,000,000		2,974,860

				6,022,260


TRANSPORTATION: CONSUMER - 1.7%

United Airlines Holdings, Inc. 5.88%, 10/15/27^(h)		3,613,200		3,964,636


WHOLESALE - 1.2%

LBM Acquisition, LLC 6.25%, 01/15/29^(h)(i)		2,952,000		2,922,952


Total Corporate Notes and Bonds (Cost $64,995,555)				66,964,439


Structured Products - 10.2%^(m)

Anchorage Capital CLO, Ltd. (Cayman Islands)
2015-6A, Class ER, 6.47%, 07/15/30^(e)(i)(n)		4,400,000		4,253,858
Churchill Middle Market CLO, Ltd. (Cayman Islands)
2021-1A E, Class E, 8.29%, 10/24/33^(e)(i)(n)		4,000,000		3,912,956
Fortress Credit BSL CLO, Ltd. (Cayman Islands)
2021-3 Class E, 7.18%, 07/20/34^(e)(i)(n)		3,000,000		2,880,114
Fortress Credit Opportunities CLO, Ltd. (Cayman Islands)
2018-11A, Class E, 7.27%, 04/15/31^(e)(i)(n)		4,000,000		3,811,476
Golub Capital Partners CLO, Ltd. (Cayman Islands)
2021-55A, Class E, 6.65%, 07/20/34^(e)(i)(n)		2,000,000		1,918,064
KKR Financial CLO, Ltd. (Cayman Islands)
2017, Class ER, 7.51%, 04/15/34^(e)(i)(n)		2,750,000		2,736,217
TIAA Churchill Middle Market CLO, Ltd. (Cayman Islands)
2016-1A, Class ER, 8.10%, 10/20/30^(e)(i)(n)		5,000,000		4,982,760


Total Structured Products (Cost $24,691,991)				24,495,445

See accompanying Notes to Financial Statements. | 17

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021



	Quantity		Value ($)
Common Stocks - 1.1%

AUTOMOTIVE - 0.0%

APC Parent, Inc.^(d)(j)		241,972		114,671


ENERGY: OIL & GAS - 0.0%

RDV Resources, Inc.^(d)(j)		7,743		—


HIGH TECH INDUSTRIES - 0.2%

Riverbed Holdings, Inc.^(j)		29,146		388,612


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%

Acosta, Inc.^(d)(j)		3,133		25,399
F & W Media, Inc.^(d)(j)		9,511		—

				25,399


MEDIA: BROADCASTING & SUBSCRIPTION - 0.9%

Anuvu Corp.^(d)(j)		102,608		2,046,003


RETAIL - 0.0%

Charming Charlie, LLC^(d)(j)		2,679,190		—


Total Common Stocks (Cost $4,160,333)				2,574,685



	Quantity		Value ($)
Preferred Stocks - 0.6%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.4%

Somers Group Holdings Ltd. (Bermuda)
(LIBOR + 6.68%, 1.00% Floor), 7.68%^(d)(e)		37,863		960,774


HIGH TECH INDUSTRIES - 0.1%

Riverbed Holdings, Inc.		19,948		388,986


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.1%

Acosta, Inc.,
(14.5% PIK), 0.00%^(d)(f)(h)		3,353		156,028


Total Preferred Stocks (Cost $1,586,309)				1,505,788


Warrants - 0.0%

SERVICES: BUSINESS - 0.0%

CareStream Health, Inc.^(d)(j)		22		—


Total Warrants (Cost $0)				—


Total Investments-152.9%				365,833,170
(Cost of $369,328,909)
Other Assets & Liabilities, Net-(2.4)%				(5,678,181	)
Loan Outstanding-(50.5)%^(k)(l)				(120,927,969	)


Net Assets (Applicable to Common Shares)-100.0%				239,227,020

18 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2021

^(a)

^(b)	All or a portion of this Senior Loan position has not settled. Full contract rates do not take effect until settlement date and therefore are subject to change.

^(c)

^(d)	Fair Value Level 3 security.

^(e)	Foreign issuer traded in U.S. dollars.

^(f)	Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amount/share quantity.

^(g)	Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.

^(h)	Fixed rate asset.

⁽ⁱ⁾	Securities exempt from registration pursuant to Rule 144A under the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. At December 31, 2021, these securities amounted to $81,645,379, or 34.1% of net assets.

^(j)	Non-income producing asset.

^(k)	The Fund has granted a security interest in substantially all of its assets in the event of default under the credit facility.

^(l)	Principal of $121,000,000 less unamortized deferred financing costs of $72,031.

^(m)

Structured Products include collateralized loan obligations (“CLOs”). A CLO typically takes the form of a financing company (generally called a special purpose vehicle or “SPV”), created to reapportion the risk and return characteristics of a pool of assets. While the assets underlying CLOs are often Senior Loans or corporate notes and bonds, the assets may also include (i) subordinated loans; (ii) debt tranches of other CLOs; and (iii) equity securities incidental to investments in Senior Loans. The Fund may invest in lower tranches of CLOs, which typically experience a lower recovery, greater risk of loss or deferral or non-payment of interest than more senior tranches of the CLO. A key feature of the CLO structure is the prioritization of the cash flows from a pool of debt securities among the several classes of the CLO. The SPV is a company founded for the purpose of securitizing payment claims arising out of this asset pool. On this basis, marketable securities are issued by the SPV and the redemption of these securities typically takes place at maturity out of the cash flow generated by the collected claims.

⁽ⁿ⁾	Floating rate asset. The interest rate shown reflects the rate in effect at December 31, 2021.

See accompanying Notes to Financial Statements. | 19

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Statements of Assets and Liabilities

December 31, 2021


	Apollo Senior Floating Rate Fund Inc.			Apollo Tactical Income Fund Inc.
Assets:

Investment securities at fair value (cost $392,480,636 and $369,328,909, respectively)	$	387,165,035		$	365,833,170
Cash and cash equivalents		26,201,080			18,531,435
Interest receivable		871,365			2,194,500
Receivable for investment securities sold		31,404,429			27,338,335
Net unrealized appreciation on unfunded loan commitments (Note 9)		7,511			7,544
Receivable from affiliate		62,759			213,399
Prepaid expenses		137,037			137,165


Total assets	$	445,849,216		$	414,255,548


Liabilities:

Borrowings under credit facility (principal $130,000,000 and $121,000,000, respectively, less unamortized deferred financing costs of $100,591 and $72,031, respectively) (Note 8)	$	129,899,409		$	120,927,969
Payable for investment securities purchased		59,133,109			53,513,573
Interest payable		83,880			82,274
Investment advisory fee payable		327,768			305,390
Other payables and accrued expenses		204,211			199,322


Total liabilities	$	189,648,377		$	175,028,528


Commitments and Contingencies (Note 9)

Net Assets (Applicable to Common Shareholders)	$	256,200,839		$	239,227,020


Net Assets Consist of:

Paid-in capital ($0.001 par value, 999,998,466 and 1,000,000,000 common shares authorized, respectively, and 15,573,575 and 14,464,026 issued and outstanding, respectively) (Note 6)	$	295,515,991		$	275,434,361
Total accumulated loss		(39,315,152	)		(36,207,341	)


Net Assets (Applicable to Common Shareholders)	$	256,200,839		$	239,227,020


Number of Common Shares Outstanding		15,573,575			14,464,026
Net Asset Value, per Common Share	$	16.45		$	16.54

20 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Statements of Operations

For the Year Ended December 31, 2021


	Apollo Senior Floating Rate Fund Inc.			Apollo Tactical Income Fund Inc.
Investment Income:

Interest	$	19,833,883		$	19,668,572
Dividends (net of withholding taxes of $107,486 and $99,218, respectively)		1,022,427			947,938


Total investment income		20,856,310			20,616,510


Expenses:

Investment advisory fee (Note 3)		3,857,083			3,578,216
Interest and commitment fee expense (Note 8)		1,186,304			1,168,325
Professional fees		128,820			128,820
Legal fees		376,310			387,316
Administrative services of the Adviser (Note 3)		846,784			864,157
Fund administration and accounting services (Note 3)		216,635			206,631
Insurance expense		329,898			329,898
Amortization of deferred financing costs (Note 8)		169,126			186,456
Board of Directors fees (Note 3)		153,000			157,000
Other operating expenses		232,428			226,367


Total expenses		7,496,388			7,233,186
Less: Expense waiver (Note 3)		(62,759	)		(213,399	)


Net expenses		7,433,629			7,019,787


Net Investment Income		13,422,681			13,596,723


Net Realized and Unrealized Gain/(Loss) on Investments

Net realized gain on investments		8,519,152			9,474,722
Net change in unrealized depreciation on investments and unfunded loan commitments (Note 9)		(2,193,025	)		(4,687,659	)


Net realized and unrealized gain on investments		6,326,127			4,787,063


Net Increase in Net Assets, Applicable to Common Shareholders, Resulting From Operations	$	19,748,808		$	18,383,786

See accompanying Notes to Financial Statements. | 21

Apollo Senior Floating Rate Fund Inc.

Statements of Changes in Net Assets


	For the Year Ended December 31, 2021			For the Year Ended December 31, 2020
Increase/(Decrease) in Net Assets from:

Operations

Net investment income	$	13,422,681		$	15,243,667
Net realized gain/(loss) on investments		8,519,152			(16,813,877	)
Net change in unrealized appreciation/(depreciation) on investments and unfunded loan commitments		(2,193,025	)		5,166,187


Net increase in net assets from operations		19,748,808			3,595,977


Distributions to Common Shareholders

From net investment income		(13,989,900	)		(15,868,950	)
Return of capital		(1,100,440	)		—

Total distributions to common shareholders		(15,090,340	)		(15,868,950	)


Capital transactions from Common Shares

Reinvestment of dividends		8,416			—


Total increase/(decrease) in net assets	$	4,666,884		$	(12,272,973	)

Net Assets Applicable to Common Shares

Beginning of year		251,533,955			263,806,928

End of year	$	256,200,839		$	251,533,955

22 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Statements of Changes in Net Assets


	For the Year Ended December 31, 2021			For the Year Ended December 31, 2020
Increase/(Decrease) in Net Assets from:

Operations

Net investment income	$	13,596,723		$	14,816,639
Net realized gain/(loss) on investments		9,474,722			(14,550,431	)
Net change in unrealized appreciation/(depreciation) on investments and unfunded loan commitments		(4,687,659	)		6,636,493


Net increase in net assets from operations		18,383,786			6,902,701


Distributions to Common Shareholders

From net investment income		(14,244,987	)		(15,375,260	)
Return of capital		(190,110	)		—

Total distributions to common shareholders		(14,435,097	)		(15,375,260	)


Total increase/(decrease) in net assets	$	3,948,689		$	(8,472,559	)

Net Assets Applicable to Common Shares

Beginning of year		235,278,331			243,750,890

End of year	$	239,227,020		$	235,278,331

See accompanying Notes to Financial Statements. | 23

Apollo Senior Floating Rate Fund Inc.

Statement of Cash Flows

For the Year Ended December 31, 2021


Cash Flows from Operating Activities:

Net increase in net assets from operations	$	19,748,808

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Flows Provided By Operating Activities:
Net realized gain on investments		(8,519,152	)
Net change in unrealized depreciation on investments and unfunded loan commitments		2,193,025
Net amortization/(accretion) of premium/(discount)		(1,349,439	)
Purchase of investment securities		(450,330,230	)
Proceeds from disposition of investment securities and principal paydowns		467,347,356
Payment-in-kind interest		(290,234	)
Amortization of deferred financing costs		169,126
Changes in Operating Assets and Liabilities:
Increase in interest receivable		(40,250	)
Increase in receivable from affiliate		(62,759	)
Increase in prepaid expenses		(9,958	)
Increase in interest payable		80,450
Increase in investment advisory fee payable		12,260
Increase in other payables and accrued expenses		45,970


Net cash flows provided by operating activities		28,994,973


Cash Flows from Financing Activities:
Deferred financing costs paid		(242,113	)
Proceeds from borrowings under the credit facility		9,000,000
Distributions paid to common shareholders (net of change in distributions payable to common shareholders)		(16,623,657	)


Net cash flows used in financing activities		(7,865,770	)


Net Increase in Cash and Cash Equivalents		21,129,203

Cash and cash equivalents, beginning of year		5,071,877


Cash and cash equivalents, end of year	$	26,201,080


Supplemental Disclosure of Cash Flow Information
Cash paid during the year for interest and commitment fee	$	1,105,854


Supplemental Disclosure of Non-Cash Financing Activity
Value of common shares issued as reinvestment of dividends to common shareholders	$	8,416

24 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Statement of Cash Flows

For the Year Ended December 31, 2021


Cash Flows from Operating Activities:

Net increase in net assets from operations	$	18,383,786

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Flows Provided by Operating Activities:
Net realized gain on investments		(9,474,722	)
Net change in unrealized depreciation on investments and unfunded loan commitments		4,687,659
Net amortization/(accretion) of premium/(discount)		(1,009,861	)
Purchase of investment securities		(474,710,113	)
Proceeds from disposition of investment securities and principal paydowns		482,841,836
Payment-in-kind interest		(178,790	)
Amortization of deferred financing costs		186,456
Changes in Operating Assets and Liabilities:
Increase in interest receivable		(214,716	)
Increase in receivable from affiliate		(213,399	)
Increase in prepaid expenses		(10,086	)
Increase in interest payable		79,156
Increase in investment advisory fee payable		13,499
Increase in other payables and accrued expenses		2,528


Net cash flows provided by operating activities		20,383,233


Cash Flows from Financing Activities:
Deferred financing costs paid		(78,675	)
Proceeds from borrowings under the credit facility		11,000,000
Distributions paid to common shareholders (net of change in distributions payable to common shareholders)		(15,910,428	)


Net cash flows used in financing activities		(4,989,103	)


Net Increase in Cash and Cash Equivalents		15,394,130

Cash and cash equivalents, beginning of year		3,137,305


Cash and cash equivalents, end of year	$	18,531,435


Supplemental Disclosure of Cash Flow Information
Cash paid during the year for interest and commitment fee	$	1,089,169

See accompanying Notes to Financial Statements. | 25

Apollo Senior Floating Rate Fund Inc.

Financial Highlights

For a Common Share Outstanding


Per Common Share Operating Performance:	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			For the Year Ended December 31, 2017
Net Asset Value, Beginning of Year	$	16.15		$	16.94		$	16.34		$	17.86		$	18.07

Income from Investment Operations:
Net investment income^(a)		0.86			0.98			1.21			1.25			1.13
Net realized and unrealized gain/(loss) on investments and unfunded loan commitments		0.41			(0.75	)		0.59			(1.51	)		(0.18	)

Total from investment operations		1.27			0.23			1.80			(0.26	)		0.95

Less Distributions Paid to Common Shareholders from:
Net investment income		(0.90	)		(1.02	)		(1.20	)		(1.26	)		(1.16	)
Return of capital		(0.07	)		—			—			—			—

Total distributions paid to Common Shareholders		(0.97	)		(1.02	)		(1.20	)		(1.26	)		(1.16	)

Net Asset Value, End of Year	$	16.45		$	16.15		$	16.94		$	16.34		$	17.86
Market Value, End of Year	$	16.11		$	14.40		$	15.14		$	14.39		$	16.22
Total return based on net asset value^(b)		8.38	%		2.99	%		12.35	%		(0.98	)%		5.80	%
Total return based on market value^(b)		19.04	%		2.75	%		14.02	%		(3.98	)%		(0.22	)%
Ratios to Average Net Assets Applicable to Common Shareholders:
Ratio of total expenses to average net assets		2.91	%		3.12	%		4.01	%		3.84	%		3.33	%
Ratio of net expenses to average net assets		2.89	%		3.12	%		4.01	%		3.84	%		3.33	%
Ratio of net investment income to average net assets		5.22	%		6.37	%		7.23	%		7.10	%		6.24	%
Supplemental Data:
Portfolio turnover rate		123.3	%		93.6	%		101.2	%		122.4	%		102.2	%
Net assets at end of year (000’s)	$	256,201		$	251,534		$	263,807		$	254,427		$	278,070
Senior Securities:
Principal loan outstanding (in 000’s)	$	130,000		$	121,000		$	141,000		$	141,000		$	141,000
Asset coverage per $1,000 of loan outstanding^(c)	$	2,971		$	3,079		$	2,871		$	2,804		$	2,972

^(a)	Based on the weighted average outstanding shares.

^(b)	Total return based on net asset value and total return based on market value assuming all distributions reinvested at reinvestment rate.

^(c)	Calculated by subtracting the Fund’s total liabilities (not including the borrowings outstanding) from the Fund’s total assets, and dividing this by the amount of borrowings outstanding.

26 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Financial Highlights

For a Common Share Outstanding


Per Common Share Operating Performance:	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			For the Year Ended December 31, 2017
Net Asset Value, Beginning of Year	$	16.27		$	16.85		$	16.07		$	17.44		$	17.18

Income from Investment Operations:
Net investment income^(a)		0.94			1.02			1.25			1.33			1.27
Net realized and unrealized gain/(loss) on investments and unfunded loan commitments		0.33			(0.54	)		0.77			(1.38	)		0.28

Total from investment operations		1.27			0.48			2.02			(0.05	)		1.55

Less Distributions Paid to Common Shareholders from:
Net investment income		(0.99	)		(1.06	)		(1.24	)		(1.32	)		(1.29	)
Return of capital		(0.01	)		—			—			—			—

Total distributions paid to Common Shareholders		(1.00	)		(1.06	)		(1.24	)		(1.32	)		(1.29	)

Net Asset Value, End of Year	$	16.54		$	16.27		$	16.85		$	16.07		$	17.44
Market Value, End of Year	$	15.32		$	14.48		$	15.10		$	13.77		$	15.75
Total return based on net asset value^(b)		8.44	%		4.71	%		13.97	%		0.47	%		9.87	%
Total return based on market value^(b)		12.86	%		3.99	%		19.20	%		(4.67	)%		10.47	%
Ratios to Average Net Assets Applicable to Common Shareholders:
Ratio of total expenses to average net assets		3.01	%		3.16	%		4.03	%		3.85	%		3.53	%
Ratio of net expenses to average net assets		2.92	%		3.16	%		4.03	%		3.85	%		3.53	%
Ratio of net investment income to average net assets		5.66	%		6.72	%		7.53	%		7.65	%		7.27	%
Supplemental Data:
Portfolio turnover rate		137.5	%		96.4	%		112.3	%		130.9	%		111.8	%
Net assets at end of year (000’s)	$	239,227		$	235,278		$	243,751		$	232,432		$	252,265
Senior Securities:
Principal loan outstanding (in 000’s)	$	121,000		$	110,000		$	126,500		$	126,500		$	138,000
Asset coverage per $1,000 of loan outstanding^(c)	$	2,977		$	3,139		$	2,927		$	2,837		$	2,828

^(a)	Based on the weighted average outstanding shares.

^(b)	Total return based on net asset value and total return based on market value assuming all distributions reinvested at reinvestment rate.

^(c)	Calculated by subtracting the Fund’s total liabilities (not including the borrowings outstanding) from the Fund’s total assets, and dividing this by the amount of borrowings outstanding.

See accompanying Notes to Financial Statements. | 27

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements

December 31, 2021

Note 1. Organization and Operation

Apollo Senior Floating Rate Fund Inc. (“AFT”) and Apollo Tactical Income Fund Inc. (“AIF”) (individually, a “Fund” or, together, the “Funds”) are corporations organized under the laws of the State of Maryland and registered with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940 (the “Investment Company Act”) as diversified, closed-end management investment companies. AFT and AIF commenced operations on February 23, 2011 and February 25, 2013, respectively. Prior to that, the Funds had no operations other than matters relating to their organization and the sale and issuance of 5,236 shares of common stock in each Fund to Apollo Credit Management, LLC (the “Adviser”) at a price of $19.10 per share. The Adviser serves as the Funds’ investment adviser and is an affiliate of Apollo Global Management, Inc. (“AGM”). The Funds’ common shares are listed on the New York Stock Exchange (“NYSE”) and trade under the symbols “AFT” and “AIF”, respectively.

Investment Objective

AFT’s investment objective is to seek current income and preservation of capital. AFT seeks to achieve its investment objective by investing primarily in senior, secured loans made to companies whose debt is rated below investment grade (“Senior Loans”) and investments with similar characteristics. Senior Loans typically hold a first lien priority and pay interest at rates that are determined periodically on the basis of a floating base lending rate plus a spread. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) or the Secured Overnight Financing Rate (“SOFR”), and secondarily the prime rate offered by one or more major U.S. banks and the certificate of deposit rate used by commercial lenders. Senior Loans are typically made to U.S. and, to a limited extent, non-U.S. corporations, partnerships and other business entities (“Borrower(s)”) that operate in various industries and geographical regions. AFT seeks to generate current income and preservation of capital through a disciplined approach to credit selection and under normal market conditions will invest at least 80% of its managed assets in floating rate Senior Loans and investments with similar economic characteristics. This policy and AFT’s investment objective are not fundamental and may be changed by the board of directors of AFT with at least 60 days’ prior written notice provided to shareholders. Part of AFT’s investment objective is to seek preservation of capital. AFT’s ability to achieve capital preservation may be limited by its investment in credit instruments that have speculative characteristics. There can be no assurance that AFT will achieve its investment objective.

AIF’s primary investment objective is to seek current income with a secondary objective of preservation of capital. AIF seeks to achieve its investment objectives primarily by allocating its assets among different types of credit instruments based on absolute and relative value considerations and its analysis of the credit markets. This ability to dynamically allocate AIF’s assets may result in AIF’s portfolio becoming concentrated in a particular type of credit instrument (such as Senior Loans or high yield corporate bonds) and substantially less invested in other types of credit instruments. Under normal market conditions, at least 80% of AIF’s managed assets will be invested in credit instruments and investments with similar economic characteristics. For purposes of this policy, “credit instruments” will include Senior Loans, subordinated loans, high yield corporate bonds, notes, bills, debentures, distressed securities, mezzanine securities, structured products (including, without limitation, collateralized debt obligations (“CDOs”), collateralized loan obligations (“CLOs”) and asset-backed securities), bank loans, corporate loans, convertible and preferred securities, government and municipal obligations, mortgage-backed securities, repurchase agreements, and other fixed-income instruments of a similar nature that may be represented by derivatives such as options, forwards, futures contracts or swap agreements. This policy and AIF’s investment objectives are not fundamental and may be changed by the board of directors of AIF (together with the board of directors of AFT, the “Board of Directors” or “Board”) with at least 60 days’ prior written notice provided to shareholders. AIF will seek to preserve capital to the extent consistent with its primary investment objective. AIF’s ability to achieve capital preservation may be limited by its investment in credit instruments that have speculative characteristics. There can be no assurance that AIF will achieve its investment objectives.

Note 2. Significant Accounting Policies

The Funds are investment companies that follow the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies. The Funds’ financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require

28 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

Fund Valuation

Each Fund’s net asset value (“NAV”) per share will be determined daily generally as of 4:00 pm on each day that the NYSE is open for trading, or at other times as determined by the Board. The NAV of each Fund’s common shares is the total assets of the Fund (including all securities, cash and other assets) minus the sum of the Fund’s total liabilities (including accrued expenses, dividends payable, borrowings and the liquidation value of any preferred stock) divided by the total number of common shares of the Fund outstanding.

Security Valuation

The Funds value their investments primarily using the mean of the bid and ask prices provided by a nationally recognized security pricing service or broker. Senior Loans, corporate notes and bonds, common stock, structured products, preferred stock and warrants are priced based on valuations provided by an approved independent pricing service or broker, if available. If market or broker quotations are not available, or a price is not available from an independent pricing service or broker, or if the price provided by the independent pricing service or broker is believed to be unreliable, the security will be fair valued pursuant to procedures adopted by the Board. In general, the fair value of a security is the amount that the Funds might reasonably expect to receive upon the sale of an asset or pay to transfer a liability in an orderly transaction between willing market participants at the reporting date. Fair value procedures generally take into account any factors deemed relevant, which may include, among others, (i) the nature and pricing history of the security, (ii) the liquidity or illiquidity of the market for the particular security, (iii) recent purchases or sales transactions for the particular security or similar securities and (iv) press releases and other information published about the issuer. In these cases, a Fund’s NAV will reflect the affected portfolio securities’ fair value as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to value securities may result in a value that is different from a security’s most recent sale price and from the prices used by other investment companies to calculate their NAV. Determination of fair value is uncertain because it involves subjective judgments and estimates. There can be no assurance that a Fund’s valuation of a security will not differ from the amount that it realizes upon the sale of such security.

Fair Value Measurements

Each Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination. The levels of fair value inputs used to measure the Funds’ investments are characterized into a fair value hierarchy. The three levels of the fair value hierarchy are described below:

Level 1 — Quoted unadjusted prices for identical assets and liabilities in active markets to which the Funds have access at the date of measurement;

Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, but are valued based on executed trades, broker quotations that constitute an executable price, and alternative pricing sources supported by observable inputs which, in each case, are either directly or indirectly observable for the asset in connection with market data at the measurement date; and

Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. In certain cases, investments classified within Level 3 may include securities for which the Funds have obtained indicative quotes from broker-dealers that do not necessarily represent prices the broker may be willing to trade on, as such quotes can be subject to material management judgment. Unobservable inputs are those inputs that reflect the Funds’ own assumptions that market participants would use to price the asset or liability based on the best available information.

At the end of each reporting period, management evaluates the Level 2 and Level 3 assets, if any, for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from independent pricing services, and the existence of contemporaneous, observable trades in the market.

Annual Report | 29

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

The valuation techniques used by the Funds to measure fair value at December 31, 2021 maximized the use of observable inputs and minimized the use of unobservable inputs. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Summaries of the Funds’ investments categorized in the fair value hierarchy as of December 31, 2021 are as follows:


Apollo Senior Floating Rate Fund Inc.


	Total Fair Value at December 31, 2021				Level 1 Quoted Price			Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs


Assets:
Cash and Cash Equivalents		$	26,201,080			$	26,201,080		$	—			$	—
Senior Loans			376,936,032				—			365,473,954				11,462,078
Corporate Notes and Bonds			5,939,356				—			5,170,945				768,411
Common Stocks			2,737,177				—			435,252				2,301,925
Preferred Stocks			1,552,470							435,669				1,116,801
Warrants			—				—			—				—
Unrealized appreciation on Unfunded Loan Commitments			17,060				—			17,060				—

Total Assets		$	413,383,175			$	26,201,080		$	371,532,880			$	15,649,215

Liabilities:
Unrealized depreciation on Unfunded Loan Commitments			(9,549	)			—			(8,128	)			(1,421	)

Total Liabilities			(9,549	)			—			(8,128	)			(1,421	)

		$	413,373,626			$	26,201,080		$	371,524,752			$	15,647,794

The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value as of December 31, 2021:


Apollo Senior Floating Rate Fund Inc.


	Total				Senior Loans				Corporate Notes and Bonds			Common Stocks				Preferred Stocks			Warrants				Unfunded Loan Commitments


Total Fair Value, beginning of year		$	19,227,669			$	13,735,856			$	—		$	5,318,468			$	136,991		$	36,354			$	—
Purchases, including capitalized PIK			14,123,199				11,819,316				—			2,303,883				—			—				—
Sales/Paydowns			(23,438,959	)			(13,770,590	)			—			(9,668,369	)			—			—				—
Accretion/(amortization) of discounts/ (premiums)			28,217				28,217				—			—				—			—				—
Net realized gain/(loss)			4,374,749				(2,021,554	)			—			6,447,329				—			(51,026	)			—
Change in net unrealized appreciation/ (depreciation)			372,145				1,670,833				768,411			(2,099,386	)			19,036			14,672				(1,421	)
Transfers into Level 3			960,774				—				—			—				960,774			—				—
Transfers out of Level 3			—				—				—			—				—			—				—

Total Fair Value, end of year		$	15,647,794			$	11,462,078			$	768,411		$	2,301,925			$	1,116,801		$	—			$	(1,421	)

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. The net change in unrealized appreciation/(depreciation) attributable to Level 3 investments still held at December 31, 2021 was $658,554.

30 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

The following table provides quantitative measures used to determine the fair values of the Level 3 investments as of December 31, 2021:

Apollo Senior Floating Rate Fund Inc.

Assets/Liabilities

Fair Value at
December 31, 2021

Valuation Technique(s)^(a)

Unobservable Input(s)

Range of
Unobservable
Input(s) Utilized

Weighted Average
Unobservable Input(s)

Senior Loans

1,936,456

Independent pricing service and/or broker quotes

Vendor and/or broker quotes

N/A

2,080,550

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

3.4x-3.8x

3.6x

32,480

Recoverability^(c)

Estimated Proceeds^(c)

$843k

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

58,842

Discounted Cash Flow^(d)

Discount Rate^(d)

9.69%-10.69%

10.19%

7,353,750

Transaction Approach ^(e)

Cost ^(e)

N/A

Corporate Notes and Bonds

768,411

Recoverability ^(c)

Discounted Cash Flow ^(d)

Estimated Proceeds ^(c)

Discount Rate ^(d)

$53.9m

0.60%

$53.9m

0.60%

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

Common Stocks

25,399

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

7.0x

—

Recoverability^(c)

Estimated Proceeds^(c)

$843k

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

114,671

Recoverability^(c)

Estimated Proceeds^(c)

$0.47

2,161,855

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

4.25x-4.50x

4.38x

Preferred Stock

156,027

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

7.0x

960,774

Discounted Cash Flow^(d)

Discount Rate^(d)

8.15%-8.65%

8.40%

Warrants

—

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

3.4x-3.8x

3.6x

Unfunded Loan Commitments

(1,421

)

Discounted Cash Flow^(d)

Discount Rate^(d)

9.69%-10.69%

10.19%

—

Transaction Approach ^(e)

Cost ^(e)

N/A

Total Fair Value

15,647,794

^(a)	For the assets which have multiple valuation techniques, the Fund may rely on the techniques individually or in aggregate based on a weight ranging from 0-100%.

^(b)

The Fund utilized a guideline public company method to fair value this security. The significant unobservable inputs used in the valuation model were total enterprise value (“TEV”) and earnings before interest, taxes, depreciation and amortization (“EBITDA”) based on comparable multiples for a similar investment with similar risks. Significant increases or decreases in either of these inputs in isolation may result in a significantly higher or lower fair value measurement.

^(c)

The Fund utilized a recoverability approach to fair value these securities, 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. Significant increases or decreases in the input in isolation may result in a significantly higher or lower fair value measurement.

^(d)

The Fund utilized a discounted cash flow model to fair value this security. The significant unobservable input used in the valuation model was the discount rate, which was determined based on the market rates an investor would expect for a similar investment with similar risks. The discount rate was applied to present value the projected cash flows in the valuation model. Significant increases in the discount rate may significantly lower the fair value of an investment; conversely, significant decreases in the discount rate may significantly increase the fair value of an investment.

^(e)	The Fund utilized a recent transaction, specifically purchase price, to fair value this security.

Annual Report | 31

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021


Apollo Tactical Income Fund Inc.


	Total Fair Value at December 31, 2021				Level 1 Quoted Price			Level 2 Significant Observable Inputs				Level 3 Significant Unobservable Inputs


Assets:
Cash and Cash Equivalents		$	18,531,435			$	18,531,435		$	—			$	—
Senior Loans			270,292,813				—			252,113,712				18,179,101
Corporate Notes and Bonds			66,964,439				—			66,255,136				709,303
Structured Products			24,495,445				—			24,495,445				—
Common Stocks			2,574,685				—			388,612				2,186,073
Preferred Stocks			1,505,788				—			388,986				1,116,802
Warrants			—				—			—				—
Unrealized appreciation on Unfunded Loan Commitments			17,107				—			17,060				47

Total Assets		$	384,381,712			$	18,531,435		$	343,658,951			$	22,191,326

Liabilities:
Unrealized depreciation on Unfunded Loan Commitments			(9,564	)			—			(8,219	)			(1,345	)

Total Liabilities			(9,564	)			—			(8,219	)			(1,345	)

		$	384,372,148			$	18,531,435		$	343,650,732			$	22,189,981

The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value as of December 31, 2021:


Apollo Tactical Income Fund Inc.


	Total				Senior Loans				Corporate Notes and Bonds			Structured Product				Common Stocks				Preferred Stocks			Warrants				Unfunded Loan Commitments


Total Fair Value, beginning of year		$	16,676,751			$	9,221,275			$	—		$	2,329,420			$	4,966,102			$	136,991		$	22,963			$	—
Purchases, including capitalized PIK			21,731,692				19,551,272				—			—				2,180,420				—			—				—
Sales/Paydowns			(21,575,077	)			(10,192,121	)			—			(2,425,000	)			(8,957,956	)			—			—				—
Accretion/(amortization) of discounts/ (premiums)			22,908				21,548				—			1,360				—				—			—				—
Net realized gain/(loss)			4,984,531				(1,967,097	)			—			(41,679	)			7,040,214				—			(46,907	)			—
Change in net unrealized appreciation/ (depreciation)			(611,598	)			1,544,224				709,303			135,899				(3,042,707	)			19,037			23,944				(1,298	)
Transfers into Level 3			960,774				—				—			—				—				960,774			—				—
Transfers out of Level 3			—				—				—			—				—				—			—				—

Total Fair Value, end of year		$	22,189,981			$	18,179,101			$	709,303		$	—			$	2,186,073			$	1,116,802		$	—			$	(1,298	)

32 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

The following table provides quantitative measures used to determine the fair values of the Level 3 investments as of December 31, 2021:

Apollo Tactical Income Fund Inc.

Assets /Liabilities

Fair Value at
December 31, 2021

Valuation Technique(s)^(a)

Unobservable Input(s)

Range of
Unobservable
Input(s) Utilized

Weighted Average
Unobservable Input(s)

Senior Loans

1,936,456

Independent pricing service and/or broker quotes

Vendor and/or broker quotes

N/A

970,818

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

3.4x-3.8x

3.6x

9,788

Recoverability^(c)

Estimated Proceeds^(c)

$843k

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

55,689

Discounted Cash Flow^(d)

Discount Rate^(d)

9.69%-10.69%

10.19%

127,329

Discounted Cash Flow^(d)

Discount Rate^(d)

8.03%-9.11%

8.57%

2,000,683

Discounted Cash Flow^(d)

Discount Rate^(d)

7.94%-9.23%

8.58%

13,078,338

Transaction Approach^(e)

Cost^(e)

N/A

Corporate Notes and Bonds

709,303

Recoverability^(c)

Discounted Cash Flow^(d)

Estimated Proceeds^(c)

Discount Rate^(d)

$53.9m

0.60%

$53.9m

0.60%

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

Common Stocks

25,399

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

7.0x

—

Recoverability^(c)

Estimated Proceeds^(c)

$843k

—

Recoverability^(c)

Estimated Proceeds^(c)

$—

114,671

Recoverability^(c)

Estimated Proceeds^(c)

$0.47

2,046,003

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

4.25x-4.50x

4.38x

Preferred Stock

156,028

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

7.0x

960,774

Discounted Cash Flow^(d)

Discount Rate^(d)

8.15%-8.65%

8.40%

Warrants

—

Guideline Public Company^(b)

TEV | EBITDA Multiple^(b)

3.4x-3.8x

3.6x

Unfunded Loan Commitments

(1,345

)

Discounted Cash Flow^(d)

Discount Rate^(d)

9.69%-10.69%

10.19%

Discounted Cash Flow^(d)

Discount Rate^(d)

8.03%-9.11%

8.57%

—

Transaction Approach^(e)

Cost^(e)

N/A

Total Fair Value

22,189,981

^(a)	For the assets which have multiple valuation techniques, the Fund may rely on the techniques individually or in aggregate based on a weight ranging from 0-100%.

^(b)

^(c)

^(d)

^(e)	The Fund utilized a recent transaction, specifically purchase price, to fair value this security.

Annual Report | 33

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

Cash and Cash Equivalents

Cash and cash equivalents of the Funds consist of cash held in bank accounts and liquid investments with maturities, at the date of acquisition, not exceeding 90 days that, at times, may exceed federally insured limits. As of December 31, 2021, cash and cash equivalents were comprised of cash deposited with U.S. financial institutions in which carrying value approximated fair value and are considered to be Level 1 in the fair value hierarchy.

Industry Classifications

The industry classifications of the Funds’ investments, as presented in the accompanying Schedules of Investments, represent management’s belief as to the most meaningful presentation of the classification of such investments. For Fund compliance purposes, the Funds’ industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, with the primary source being Moody’s, and/or as defined by the Funds’ management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications.

Fair Value of Financial Instruments

The fair value of the Funds’ assets and liabilities that qualify as financial instruments under U.S. GAAP approximates the carrying amounts presented in the accompanying Statements of Assets and Liabilities.

Securities Transactions and Investment Income

Securities transactions of the Funds are recorded on the trade date for financial reporting purposes. Cost is determined based on consideration given, and the unrealized appreciation/(depreciation) on investment securities is the difference between fair value determined in compliance with the valuation policy approved by the Board and the cost. Realized gains and losses from securities transactions and foreign currency transactions, if any, are recorded on the basis of identified cost and stated separately in the Statements of Operations. Interest income is recorded on the accrual basis and includes the accretion of original issue discounts and amortization of premiums where applicable using the effective interest rate method over the lives of the respective debt securities. Dividend income from equity investments is recorded on the ex-dividend date. The Funds record dividend income and accrue interest income from private investments pursuant to the terms of the respective investment.

The Funds hold investments that have designated payment-in-kind (“PIK”) interest. PIK interest is included in interest income and reflected as a receivable in accrued interest up to the payment date. On payment dates, the Funds capitalize the accrued interest receivable as an additional investment and mark it at the fair value associated with the position.

U.S. Federal Income Tax Status

The Funds intend to maintain their status each year as regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and will distribute substantially all of their net investment income and net capital gains, if any, for their tax years. The Funds may elect to incur excise tax if it is deemed prudent by the Board from a cash management perspective or in the best interest of shareholders due to other facts and circumstances. For the year ended December 31, 2021, AFT and AIF did not record a U.S. federal excise tax provision. The Funds did not pay any excise tax during 2021 related to the 2020 tax year. No federal income tax provision or excise tax provision is required for the year ended December 31, 2021.

The Funds have followed the authoritative guidance on accounting for and disclosure of uncertainty in tax positions, which requires the Funds to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The Funds have determined that there was no material effect on the financial statements from following this authoritative guidance. In the normal course of business, the Funds are subject to examination by federal, state and local jurisdictions, where applicable, for tax years for which applicable statutes of limitations have not expired. The statute of limitations on AFT’s federal and state tax filings remains open for the years ended December 31, 2018 to 2021. The statute of limitations on AIF’s federal and state fillings remains open for the years ended December 31, 2018 to 2021.

34 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

Distributions to Common Shareholders

The Funds intend to make regular monthly cash distributions of all or a portion of their net investment income available to common shareholders. The Funds intend to pay common shareholders at least annually all or substantially all of their capital gains and net investment income after the payment of dividends and interest owed with respect to outstanding preferred shares and/or notes or other forms of leverage utilized by the Funds, although for cash management purposes, the Funds may elect to retain distributable amounts and pay excise tax as described above. If the Funds make a long-term capital gain distribution, they will be required to allocate such gain between the common shares and any preferred shares issued by the Funds in proportion to the total dividends paid to each class for the year in which the income is realized.

The distributions for any full or partial year might not be made in equal amounts, and one distribution may be larger than the other. The Funds will make a distribution only if authorized by the Board and declared by the Funds out of assets legally available for these distributions. The Funds may pay a special distribution at the end of each calendar year, if necessary, to comply with U.S. federal income tax requirements. This distribution policy may, under certain circumstances, have certain adverse consequences to the Funds and their shareholders because it may result in a return of capital to shareholders, which would reduce the Funds’ NAV and, over time, potentially increase the Funds’ expense ratios. If the Funds distribute a return of capital, it means that the Funds are returning to shareholders a portion of their investment rather than making a distribution that is funded from the Funds’ earned income or other profits. The Board may elect to change AFT’s or AIF’s distribution policy at any time.

Asset Segregation

In accordance with the Investment Company Act and various SEC and SEC staff interpretive positions, a Fund may “set aside” liquid assets (often referred to as “asset segregation”), or engage in measures in accordance with SEC or Staff guidance, to “cover” open positions with respect to certain kinds of financial instruments that could otherwise be considered “senior securities” as defined in Section 18(g) of the Investment Company Act. With respect to certain derivative contracts that are contractually required to cash settle, for example, a Fund is permitted to set aside liquid assets in an amount equal to the Fund’s daily marked-to-market net obligations (i.e., the Fund’s daily net liability) under the contracts, if any, rather than such contracts’ full notional value. In other circumstances, a Fund may be required to set aside liquid assets equal to such a financial instrument’s full notional value, or enter into appropriate offsetting transactions, while the position is open. Each Fund reserves the right to modify its asset segregation policies in the future to comply with any changes in the positions from time to time announced by the SEC or its staff regarding asset segregation. These segregation and coverage requirements could result in a Fund maintaining securities positions that it would otherwise liquidate, segregating assets at a time when it might be disadvantageous to do so or otherwise restricting portfolio management. Such segregation and coverage requirements will not limit or offset losses on related positions.

On October 28, 2020, the SEC adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The new rule will also impact a fund’s use of unfunded commitment agreements and reverse repurchase agreements. The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. In addition, a fund entering into an unfunded commitment agreement generally must determine, at the time it enters into such agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements as they come due. Additionally, a fund entering into reverse repurchase agreements or other similar financing transactions, must either (i) comply with the asset coverage requirements of Section 18 (combining the aggregate amount of indebtedness associated with all reverse repurchase agreements or similar financing with the aggregate amount of any other senior securities representing indebtedness when calculating the relevant asset coverage ratio) or (ii) treats all reverse repurchase agreements or similar financing transactions as derivatives transactions for all purposes under Rule 18f-4.

Annual Report | 35

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

Recent Accounting Pronouncements

In March 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which was subsequently amended in January 2021 by ASU 2021-01. The guidance is intended to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting, through various optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. These ASUs are effective from March 12, 2020 through December 31, 2022. The Funds have evaluated this guidance and determined that it does not have a material impact on the accompanying financial statements; however, the Funds are still evaluating the potential impact to future financial statements.

SEC Disclosure Update and Simplification

In December 2020, the SEC adopted Rule 2a-5. The rule establishes a consistent, principles-based framework for boards of directors to use in creating their own specific processes in order to determine fair values in good faith. The effective date for compliance with Rule 2a-5 is September 8, 2022. The Funds are evaluating the potential impact that the rule will have on the Funds’ financial statements.

Note 3. Investment Advisory, Administration and Other Agreements with Affiliates

Investment Advisory Fee

The Adviser provides certain investment advisory, management and administrative services to the Funds pursuant to investment advisory and management agreements with each of the Funds. For its services, each Fund pays the Adviser monthly at the annual rate of 1.0% of the average daily value of the Fund’s managed assets. Managed assets are defined as the total assets of a Fund (including any assets attributable to any preferred shares that may be issued or to money borrowed or notes issued by the Fund) minus the sum of the Fund’s accrued liabilities, including accrued interest and accumulated dividends (other than liabilities for money borrowed (including the liquidation preference of preferred shares) or notes issued). The Adviser may elect from time to time, in its sole discretion, to waive its receipt of the advisory fee from a Fund. If the Adviser elects to waive its compensation, such action may have a positive effect on the Fund’s performance or yield. The Adviser is under no obligation to waive its fees, may elect not to do so, may decide to waive its compensation periodically or may decide to waive its compensation on only one of the Funds at any given time. For the year ended December 31, 2021, the Adviser earned fees of $3,857,083 and $3,578,216 from AFT and AIF, respectively.

Administrative Services and Expense Reimbursements

The Funds and the Adviser have entered into Administrative Services and Expense Reimbursement Agreements pursuant to which the Adviser provides certain administrative services, personnel and facilities to the Funds and performs operational services necessary for the operation of the Funds not otherwise provided by other service providers of the Funds. These services may include, without limitation, certain bookkeeping and recordkeeping services, compliance and legal services, investor relations assistance, and accounting and auditing support. Pursuant to these agreements, the Funds will reimburse the Adviser at cost, at the Adviser’s request, for certain costs and expenses incurred by the Adviser that are necessary for the administration and operation of the Funds. In addition, the Adviser or one of its affiliates may pay certain expenses on behalf of the Funds and then allocate these expenses to the Funds for reimbursement. For the year ended December 31, 2021, the Adviser provided services under these agreements totaling $846,784 and $864,157 for AFT and AIF, respectively, which is shown in the Statements of Operations as administrative services of the Adviser. Included in these amounts is approximately $96,000 and $96,000 for AFT and AIF, respectively, of remuneration for officers of the Funds. During the year ended December 31, 2021, the Funds accrued voluntary expense waivers totaling $62,759 and $213,399 for AFT and AIF, respectively. These amounts are reflected in receivable from affiliate in the Statements of Assets and Liabilities. This waiver is completely voluntary by the Adviser and can be discontinued by the Adviser at any time without notice.

36 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2021

Each Fund has entered into separate agreements with U.S. Bancorp Fund Services, LLC, d/b/a U.S. Bank Global Fund Services, to provide accounting and administrative services, as well as separate agreements with U.S. Bank National Association to provide custodial services (together, “U.S. Bank”). Under the terms of the agreements, U.S. Bank is responsible for providing services necessary in the daily operations of the Funds such as maintaining the Funds’ books and records, calculating the Funds’ NAVs, settling all portfolio trades, preparing regulatory filings and acting as the corporate secretary. Each Fund has also entered into separate agreements with American Stock Transfer & Trust Company, LLC (“AST”), to serve as the Fund’s transfer agent, dividend disbursing agent and reinvestment plan administrator. U.S. Bank and AST provided services totaling $216,635 and $206,631 for AFT and AIF, respectively, for the year ended December 31, 2021, which are included in fund administration and accounting services in the Statements of Operation

AIF

Apollo Tactical Income Nachrichten