Edgar Filing: Apollo Tactical Income Fund Inc.

Apollo Tactical Income Fund

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, 2017

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

LOGO

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

Apollo Tactical Income Fund Inc. (NYSE: AIF)

Annual Report

December 31, 2017

TABLE OF CONTENTS


Manager Commentary (unaudited)			4
Financial Data
Apollo Senior Floating Rate Fund Inc. (unaudited)			5
Apollo Tactical Income Fund Inc. (unaudited)			6
Schedules of Investments
Apollo Senior Floating Rate Fund Inc.			7
Apollo Tactical Income Fund Inc.			17
Statements of Assets and Liabilities			27
Statements of Operations			28
Statements of Changes in Net Assets
Apollo Senior Floating Rate Fund Inc.			29
Apollo Tactical Income Fund Inc.			30
Statements of Cash Flows
Apollo Senior Floating Rate Fund Inc.			31
Apollo Tactical Income Fund Inc.			32
Financial Highlights
Apollo Senior Floating Rate Fund Inc.			33
Apollo Tactical Income Fund Inc.			34
Notes to Financial Statements			35
Report of Independent Registered Public Accounting Firm			50
Additional Information (unaudited)			51
Directors and Officers (unaudited)			53
Important Information About This Report			55

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, 2017 (unaudited)

Dear Shareholders,

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

Essentially an extension of the latter portion of 2016, 2017 was a positive year for the corporate credit markets marked by limited volatility, solid fundamental performance and spread tightening for both the leveraged loan and high yield markets. Expectations were generally limited coming into the year to coupon-like returns for both asset classes and that was the eventual result as the types of events that lead to broader spread widening were minimal during the year. The kinds of conditions that generally lead to shocks in the market, and spread widening, were mainly absent in 2017. The supply/ demand relationship was weighted throughout towards the latter, and while new primary issuance in the loan market was healthy, overall issuance was heavily weighted towards refinancing-and repricing-activity, as opposed to the introduction of new credits and paper to the market. Additionally, fundamental performance was broadly sound as most industries continued to benefit from economic growth, stable commodity prices and regulatory reform. Though certain industries, notably retail and telecommunications, continue to suffer through the unclear impact of technological evolution on their business models, profitability and cash flow trends for our portfolio companies have generally remained positive. Combined with buoyant equity markets, a global low-yield environment and ever-burgeoning demand, the leveraged loan and high yield markets were both set up for the kind of year eventually experienced.

The detail behind performance in 2017 is both telling with regards to its commentary on flows within the US credit markets and insightful as it relates to positioning going into 2018. Within the loan market, as mentioned, the primary story was around supply and demand. For the full year a record $974Bn in loans were issued, 45% higher than the previous high of $670Bn in 2013 and more than double the amount of issuance in 2016. However, net volume, excluding refinancing-and repricing-activity, totaled just $258Bn during the year. While this was an increase of 52% from the same figure in 2016 of $169Bn, and represents a very healthy number in most environments, it paled in comparison to the demand creation we saw over the same period. CLO issuance in 2017 totaled $282Bn over 571 deals, the highest total for a calendar year on record. Though 59% of this number represented reset activity, even that incorporates an element of new demand; the balance of the issuance number is entirely new dollars allocated to loans coming to market. When coupled with capital contributions to separate accounts, the natural demand occurring within existing funds and inflows into mutual funds, exchange-traded funds and non-traditional loan buyers operating in a market that was broadly bid, aggregate demand overwhelmed new supply by a substantial margin. Data around spreads shows this fairly clearly; the spread-to-maturity on a widely-followed loan market benchmark fell 41 bps over the course of the year to L+410, essentially a three year low. This spread-tightening has been a large part of performance in 2017 (and, in 2016), and potentially creates less room for similar performance going forward.

In large part the story of tighter spreads is a function of the global search for yield creating pools of capital competing for the same opportunities to lend. As it relates to this theme, there are two areas we find instructive with regards to investing in these markets going forward. As an active manager of closed-end funds we are consistently focused on finding investment opportunities overlooked by funds that are married to benchmarks and the liquid market. In an environment such as the current one, marked by heavy demand and over-competition, it becomes increasingly important to be nimble with regards to areas of focus and our approach, to look beyond the areas of the market where return and structure are most diminished by benchmark funds, becomes increasingly important. Additionally, we believe the importance of rising rates to relative returns should become one of the more important themes of the early part of 2018. Higher LIBOR, with that measure getting towards a nine year high in early 2018, is beginning to materially impact realized yields, this is as US Treasury rates are also moving higher with economic data around output, production and inflation all suggestive of a growing trend. We anticipate this trend will impact flows of capital as it occurs and increase the benefit of exposure to floating rate assets.

Entering 2018, the two types of shocks we see as most probable and resulting in the kind of opportunity that benefits the Funds would have to do with the changing rate environment just described, and the impact of technology on various industries susceptible to this kind of change and the manner in which that impacts required rates of return by investors going forward. Periods like 2017 that lack volatility have historically been more difficult for the Funds, and we appreciate opportunities with less competition to price risk and structure investments. As always, while we remain defensively oriented given a tight-spread and heavily-competitive environment, we regularly work to identify opportunities within businesses and industries where we see value when, for market-related reasons, yields become more attractive.

We appreciate your interest and support in the Funds. If you have any questions about the Funds, please call 1-888-301-3838, or visit our website at www.agmfunds.com.

Sincerely,

Apollo Credit Management, LLC

4 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Financial Data

As of December 31, 2017 (unaudited)


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

Loans			91.1%

High Yield Bonds			7.9%

Equity/Other			1.0%


Portfolio Characteristics ^(a)

Weighted Average Floating-Rate Spread			4.47%

Weighted Average Fixed-Rate Coupon			7.43%

Weighted Average Maturity (in years) (floating assets)			4.84

Weighted Average Maturity (in years) (fixed assets)			5.62

Weighted Average Modified Duration (in years) (fixed assets)			3.36

Average Position Size			$1,808,307

Number of Positions			238

Weighted Average S&P Rating^(h)			B

Weighted Average Rating Factor (Moody’s)^(h)			3,089


Credit Quality ^(b)

BBB			1.7%

BB			10.6%

B			66.6%

CCC+ or Lower			16.2%

Not Rated			4.9%


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

Services: Business			15.3%

Healthcare & Pharmaceuticals			12.9%

Telecommunications			9.0%

High Tech Industries			8.1%

Banking, Finance, Insurance & Real Estate			7.1%

Total			52.4%


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

Global Tel*Link Corp.			2.0%

Medical Solutions Holdings, Inc.			1.7%

Evergreen Skills Lux S.A.R.L.			1.6%

Asurion, LLC (fka Asurion Corp.)			1.5%

EIG Investors Corp.			1.5%

Air Medical Group Holdings, Inc.			1.5%

William Morris Endeavor Entertainment, LLC			1.4%

AP Exhaust Acquisition, LLC			1.3%

Frontier Communications Corp.			1.2%

StandardAero Aviation Holdings, Inc.			1.2%

Total			14.9%


Performance Comparison
	YTD	5 Yr	Since Inception⁽ⁱ⁾

AFT - Market Price	(0.22)%^(e)	4.27%^(e)(f)	4.08%^(e)(f)

AFT - NAV	5.80%^(e)	6.35%^(e)(f)	6.26%^(e)(f)

S&P/LSTA Leveraged Loan Index ^(g)	4.12%	4.03%^(f)	4.16%^(f)

(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, 2017. 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)

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.

(f)	Annualized.

(g)	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.

(h)	Excludes securities with no rating or in default as of December 31, 2017.

(i)	Inception date February 23, 2011.

Annual Report | 5

Apollo Tactical Income Fund Inc.

Financial Data

As of December 31, 2017 (unaudited)


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

Loans			79.6%

High Yield Bonds			10.5%

Structured Products			8.9%

Equity/Other			1.0%


Portfolio Characteristics ^(a)

Weighted Average Floating-Rate Spread			4.92%

Weighted Average Fixed-Rate Coupon			6.88%

Weighted Average Maturity (in years) (floating assets)			5.38

Weighted Average Maturity (in years) (fixed assets)			5.43

Weighted Average Modified Duration (in years) (fixed assets)			3.53

Average Position Size			$1,816,590

Number of Positions			223

Weighted Average S&P Rating^(h)			B

Weighted Average Rating Factor (Moody’s)^(h)			3,036


Credit Quality ^(b)

BBB			1.6%

BB			10.6%

B			60.4%

CCC+ or Lower			15.0%

Not Rated			12.4%


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

Services: Business			15.0%

Healthcare & Pharmaceuticals			11.5%

Telecommunications			8.4%

High Tech Industries			7.5%

Retail			6.0%

Total			48.4%


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

Medical Solutions Holdings, Inc.			1.8%

Evergreen Skills Lux S.A.R.L.			1.7%

EIG Investors Corp.			1.6%

Intelsat Jackson Holdings S.A.			1.5%

TIAA Churchill Middle Market CLO			1.5%

Air Medical Group Holdings, Inc.			1.4%

AP Exhaust Acquisition, LLC			1.4%

Global Tel*Link Corp.			1.3%

Moss Creek Resources, LLC			1.3%

Global Eagle Entertainment, Inc.			1.3%

Total			14.8%


Performance Comparison
	YTD	Since Inception⁽ⁱ⁾

AIF - Market Price	10.47%^(e)	4.12%^(e)(f)

AIF - NAV	9.87%^(e)	7.35%^(e)(f)

S&P/LSTA Leveraged Loan Index ^(g)	4.12%	3.89%^(f)

(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, 2017. 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 represent 8.9% of the portfolio as of December 31, 2017.

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

(e)

(f)	Annualized.

(g)	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.

(h)	Excludes securities with no rating or in default as of December 31, 2017.

(i)	Inception date February 25, 2013.

6 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments

December 31, 2017


	Principal Amount ($)		Value ($)
Senior Loans - 135.6%^(a)

AEROSPACE & DEFENSE - 4.4%
MRO Holdings, Inc.
Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.94%, 10/25/23^(b)		600,000		605,250
PAE Holding Corp.
First Lien Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 7.12%, 10/20/22^(b)		1,942,500		1,957,680
Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 11.12%, 10/20/23^(b)		1,404,834		1,413,614
Photonis Technologies SAS (France)
First Lien Initial Dollar Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.19%, 09/18/19^(b)(c)		1,887,413		1,658,564
Sequa Mezzanine Holdings, LLC
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.55%, 11/28/21^(b)		1,396,652		1,408,733
StandardAero Aviation
Holdings, Inc. Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 07/07/22^(b)		5,031,162		5,077,298

				12,121,139

AUTOMOTIVE - 3.6%

American Tire Distributors, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 09/01/21^(b)		1,842,145		1,857,978
AP Exhaust Acquisition, LLC
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.41%, 05/10/24^(b)		5,331,194		5,271,245
CH Hold Corp.
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.82%, 02/03/25^(b)		500,000		511,250
Innovative XCessories &
Services, LLC Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.21%, 11/29/22^(b)(d)		2,245,073		2,273,136

				9,913,609

BANKING, FINANCE, INSURANCE & REAL ESTATE - 8.1%
Amwins Group, LLC
Second Lien Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.32%, 01/25/25^(b)		342,857		347,828
AqGen Ascensus, Inc.
Replacement Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 12/05/22^(b)		1,994,962		2,005,775


	Principal Amount ($)		Value ($)

BANKING, FINANCE, INSURANCE & REAL ESTATE (continued)

Asurion, LLC
Replacement Term Loan B-5, (LIBOR + 3.00%, 0.00% Floor), 4.57%, 11/03/23^(b)		4,082,832		4,107,411
Second Lien Replacement Term Loan B-2, (LIBOR + 6.00%, 0.00% Floor), 7.57%, 08/04/25^(b).		2,117,647		2,180,509
Capital Automotive L.P.
Tranche B Term Loan, (LIBOR + 6.00%, 1.00% Floor), 7.57%, 03/24/25^(b)		1,565,851		1,612,826
CRCI Holdings, Inc.
Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 08/31/23^(b)		2,086,480		2,094,305
Medical Card System, Inc.
Term Loan, (LIBOR + 0.50%, 1.00% Floor), 1.50%, 05/31/19^(b)(e)		5,323,315		4,363,109
Mitchell International, Inc.
First Lien Initial Term Loan, (LIBOR + 3.25%, 0.00% Floor), 4.94%, 11/29/24^(b)		1,282,143		1,284,323
Second Lien Initial Term Loan, (LIBOR + 7.25%, 0.00% Floor), 8.94%, 12/01/25^(b)(d)		1,136,979		1,149,906
MMM Holdings, Inc.
MMM Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.32%, 06/30/19^(b)		516,620		501,982
MSO of Puerto Rico, Inc.
MSO Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.32%, 06/30/19^(b)		375,580		364,938
National Financial Partners Corp.
Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 01/08/24^(b)		1,298,403		1,306,842
SG Acquisition, Inc.
Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 03/29/24^(b)		1,341,955		1,333,567

				22,653,321

BEVERAGE, FOOD & TOBACCO - 3.4%

Arctic Glacier Group Holdings, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 03/20/24^(b)		496,250		502,453
The Chef’s Warehouse, Inc.
Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 06/22/22^(b)		1,076,516		1,083,245
JBS USA, LLC
Initial Term Loan, (LIBOR + 2.50%, 0.75% Floor), 4.10%, 10/30/22^(b)(d)		2,987,462		2,940,036
PFS Holding Corp.
First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 01/31/21^(b)		2,573,281		1,828,316

See accompanying Notes to Financial Statements. | 7

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a) (continued)
BEVERAGE, FOOD & TOBACCO (continued)
Winebow Holdings, Inc. (The Vintner Group, Inc.)
First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 07/01/21^(b)		1,066,103		1,050,778
Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.07%, 01/02/22^(b)(e)		2,260,897		2,136,548

				9,541,376

CAPITAL EQUIPMENT - 1.5%
MTS Systems Corporation
New Tranche B Term Loan, (LIBOR + 3.25%, 0.75% Floor), 4.69%, 07/05/23^(b)		2,114,942		2,136,092
Robertshaw US Holding Corp.
First Lien Initial Term Loan, (LIBOR + 4.50%, 0.00% Floor), 6.13%, 08/10/24^(b)		1,995,000		2,014,950

				4,151,042

CHEMICALS, PLASTICS & RUBBER - 4.5%
ASP Chromaflo Intermediate
Holdings, Inc.
First Lien Initial Tranche B-2 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 11/20/23^(b)		424,137		427,053
Initial Tranche B-1 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 11/20/23^(b)		326,179		328,422
Ineos Styrolution US Holding, LLC
Term Loan, (LIBOR + 2.00%, 0.00% Floor), 3.69%, 03/29/24^(b)		1,195,094		1,199,952
MacDermid, Inc.
Tranche B-6 Term Loan, (LIBOR + 3.00%, 1.00% Floor), 4.57%, 06/07/23^(b)		567,454		571,071
Nexeo Solutions, LLC
Term Loan B-1, (LIBOR + 3.25%, 0.00% Floor), 4.72%, 06/09/23^(b)		764,678		769,220
Niacet Corporation
First Lien Initial Dollar Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.19%, 02/01/24^(b)(e)		708,928		710,700
PetroChoice Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.42%, 08/19/22^(b)		992,200		1,000,881
SK Spice S.A.R.L (Luxembourg)
Facility B-2, (LIBOR + 4.25%, 0.00% Floor), 5.60%, 08/12/24^(b)(c)		2,121,906		2,134,276
Tronox Blocked Borrower, LLC
First Lien Blocked Dollar Term Loan, (LIBOR + 3.00%, 0.00% Floor), 4.69%, 09/23/24^(b)		722,632		728,052


	Principal Amount ($)		Value ($)
CHEMICALS, PLASTICS & RUBBER (continued)
Tronox Finance, LLC (Netherlands)
First Lien Initial Dollar Term Loan, (LIBOR + 3.00%, 0.00% Floor), 4.69%, 09/23/24^(b)(c)		1,667,612		1,680,119
Vantage Specialty Chemicals, Inc.
First Lien Closing Date Loan, (LIBOR + 4.00%, 1.00% Floor), 5.37%, 10/28/24^(b)		1,607,143		1,620,201
Second Lien Initial Loan, (LIBOR + 8.25%, 1.00% Floor), 9.62%, 10/27/25^(b)		1,367,088		1,346,582

				12,516,529

CONSTRUCTION & BUILDING - 2.1%
Associated Asphalt Partners, LLC
Tranche B Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.82%, 04/05/24^(b)(d)		1,527,977		1,394,279
Encapsys, LLC
First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 11/07/24^(b)		715,116		719,142
Henry Company, LLC
Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 10/05/23^(b)		866,919		875,948
Morsco, Inc.
Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.57%, 10/31/23^(b)		987,342		1,007,089
Terra Millenium Corp.
First Out Term Loan, (LIBOR + 6.25%, 1.00% Floor), 7.88%, 10/31/22^(b)(e)		1,950,000		1,959,750

				5,956,208

CONSUMER GOODS: DURABLE - 1.5%
Hayward Acquisition Corp.
Initial Term Loan, (LIBOR + 3.50%, 0.00% Floor), 5.07%, 08/05/24^(b)		2,420,243		2,429,319
PT Holdings, LLC
Initial Loan, (LIBOR + 8.00%, 1.00% Floor), 9.57%, 12/08/25^(b)(d)		625,000		628,125
Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 12/09/24^(b)(d)		1,000,000		1,005,940

				4,063,384

CONSUMER GOODS: NON-DURABLE - 3.7%
ABG Intermediate Holdings 2, LLC
First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.19%, 09/27/24^(b)		2,460,329		2,474,168
Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.44%, 09/29/25^(b)		971,276		985,845

8 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)
Senior Loans^(a) (continued)
CONSUMER GOODS: NON-DURABLE (continued)
LTI Holdings, Inc. First Lien Initial Term Loan, (Variable + 4.75%, 1.00% Floor), 6.32%, 05/16/24^(b)		4,037,664		4,070,470
Parfums Holding Co., Inc. First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.44%, 06/30/24^(b)(d)		1,763,506		1,780,400
Revlon Consumer Products Corp. Initial Term Loan B, (LIBOR + 3.50%, 0.75% Floor), 5.07%, 09/07/23^(b)		1,492,976		1,116,932

				10,427,815

CONTAINERS, PACKAGING & GLASS - 2.8%
Anchor Glass Container Corp. Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.18%, 12/07/24^(b)		2,291,667		2,322,215
Hoover Group, Inc. First Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.70%, 01/28/21^(b)(e)		1,454,497		1,338,137
SMI Acquisition, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.13%, 11/01/24^(b)		1,050,000		1,056,127
Sprint Industrial Holdings, LLC First Lien Term Loan, (LIBOR + 5.75%, 1.25% Floor), 7.44%, 05/14/19^(b)		3,360,025		3,141,624

				7,858,103

ENERGY: OIL & GAS - 4.2%
American Energy - Marcellus, LLC First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.71%, 08/04/20^(b)(f)(g)		2,561,807		1,912,811
Azure Midstream Energy, LLC Term Loan, (LIBOR + 6.50%, 1.00% Floor), 8.07%, 11/15/18^(b)		426,965		386,531
EMG Utica, LLC Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.59%, 03/27/20^(b)		502,271		505,882
HGIM Corp. Senior Secured Term Loan A, (Prime + 3.25%, 1.00% Floor), 7.75%, 06/18/18^(b)(g)		2,677,236		1,077,587
Moss Creek Resources, LLC Initial Term Loan, (LIBOR + 8.00%, 1.50% Floor), 9.50%, 04/07/22^(b)(e)		5,000,000		5,000,000


	Principal Amount ($)		Value ($)
ENERGY: OIL & GAS (continued)
Sheridan Investment Partners I, LLC Deferred Principal Facility I, 10/01/19^(e)(g)		4,749		2,850
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		1,630,986		1,356,434
Sheridan Production
Partners I-A, L.P. Deferred Principal Facility I-A, 10/01/19^(e)(g)		629		378
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		216,119		179,739
Sheridan Production
Partners I-M, L.P. Deferred Principal Facility I-M, 10/01/19^(e)(g)		384		231
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		132,007		109,785
Southcross Holdings Borrower, LP
Tranche B Term Loan (5.50% PIK), 9.00%, 04/13/23^(h)(i)		125,062		123,108
Traverse Midstream Partners, LLC
Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.85%, 09/27/24^(b)		926,471		940,021

				11,595,357

ENVIRONMENTAL INDUSTRIES - 1.1%
Emerald 2, Ltd. (United Kingdom) Facility B-1, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 05/14/21^(b)(c)(d)		3,091,110		3,091,110

HEALTHCARE & PHARMACEUTICALS - 17.7%
Argon Medical Devices, Inc. First Lien Term Loan B, (LIBOR + 3.75%, 1.00% Floor), 4.75%, 10/27/24^(b)(d)		1,563,830		1,576,536
ATI Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.85%, 05/10/23^(b)		709,576		716,672
Bioclinica, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.63%, 10/20/23^(b)		2,217,824		2,173,467
CT Technologies Intermediate Hldgs, Inc. Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 12/01/21^(b)		3,238,240		3,236,232
Diplomat Pharmacy, Inc. Initial Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 6.04%, 12/13/24^(b)(d)		913,043		921,032

See accompanying Notes to Financial Statements. | 9

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

HEALTHCARE & PHARMACEUTICALS (continued)
Endo Luxembourg Finance I Co. S.A.R.L Initial Term Loan, (LIBOR + 4.25%, 0.75% Floor), 5.88%, 04/29/24^(b)		3,015,106		3,038,670
Equian, LLC Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.23%, 05/20/24^(b)		868,363		877,594
ExamWorks Group, Inc. Term Loan B-1, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 07/27/23^(b)		1,470,150		1,481,794
Lanai Holdings II, Inc. First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.23%, 08/29/22^(b)(d)		3,697,157		3,549,271
Lanai Holdings III, Inc. Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.98%, 08/28/23^(b)		869,565		804,348
Lantheus Medical Imaging, Inc. New Term Loan B 2017, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 06/30/22^(b)		1,043,475		1,052,824
Medical Solutions Holdings, Inc. First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 06/14/24^(b)		5,083,624		5,140,815
Second Lien Closing Date Loan, (LIBOR + 8.25%, 1.00% Floor), 9.82%, 06/16/25^(b)		2,000,000		1,990,000
Nmsc Holdings, Inc. Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 04/19/23^(b)		561,524		553,101
Onex Schumacher Finance, L.P. First Lien Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 07/29/22^(b)(d)		1,550,873		1,531,487
Opal Acquisition, Inc. First Lien Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.53%, 11/27/20^(b)		4,621,323		4,345,962
Parexel International Corp. Initial Term Loan, (LIBOR + 3.00%, 0.00% Floor), 4.57%, 09/27/24^(b)		2,273,125		2,285,911
PharMerica Corporation First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.90%, 12/06/24^(b)		1,732,523		1,743,784
Premier Dental Services, Inc. Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.82%, 06/30/23^(b)(d)		1,006,428		1,014,922
Quorum Health Corp. Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.32%, 04/29/22^(b)		2,658,042		2,691,267


	Principal Amount ($)		Value ($)

HEALTHCARE & PHARMACEUTICALS (continued)

Select Medical Corp. Tranche B Term Loan, (Variable + 3.50%, 1.00% Floor), 4.85%, 03/01/21^(b)		1,476,561		1,493,172
Team Health Holdings, Inc. Initial Term Loan, (LIBOR + 2.75%, 1.00% Floor), 4.32%, 02/06/24^(b)		1,832,704		1,789,186
Tecomet, Inc. 2017 Term Loan, (Variable + 3.50%, 1.00% Floor), 4.89%, 05/01/24^(b)		497,500		503,097
U.S. Renal Care, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.94%, 12/30/22^(b)		3,976,797		3,927,087
Valeant Pharmaceuticals International, Inc. (Canada) Tranche B Term Loan, Series F-4, (LIBOR + 3.50%, 0.75% Floor), 4.94%, 04/01/22^(b)(c)		718,335		729,394
				49,167,625
HIGH TECH INDUSTRIES - 11.1%
Aptean, Inc. Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 11.20%, 12/20/23^(b)		763,810		768,905
Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.95%, 12/20/22^(b)		2,145,103		2,165,664
Aricent Technologies First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.97%, 04/14/21^(b)		3,464,479		3,481,801
Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.97%, 04/14/22^(b)		1,391,828		1,405,050
Aspect Software, Inc. First Lien Exit Term Loan, (LIBOR + 10.50%, 1.00% Floor), 12.07%, 05/25/20^(b)		1,568,524		1,548,917
DigiCert Holding, Inc. First Lien Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.13%, 10/31/24^(b)		1,895,411		1,922,060
Second Lien Term Loan, (LIBOR + 8.00%, 1.00% Floor), 9.38%, 10/31/25^(b)		1,514,727		1,526,330
DTI Holdco, Inc. Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.63%, 10/02/23^(b)		997,475		996,228
Flexera Software, LLC Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.57%, 04/02/21^(b)		2,987,571		3,002,508

10 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

HIGH TECH INDUSTRIES (continued)

Gigamon, Inc. First Lien Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.03%, 12/19/24^(b)(d)		1,714,285		1,705,714
Integrated Device Technology, Inc. Initial Term Loan B, (LIBOR + 3.00%, 0.00% Floor), 4.57%, 04/04/24^(b)		774,634		777,036
MA FinanceCo., LLC Tranche B-3 Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 06/21/24^(b)		60,450		60,576
Misys, Ltd. (United Kingdom) Second Lien Dollar Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.73%, 06/13/25^(b)(c)		500,000		502,750
Riverbed Technology, Inc. First Amendment Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 04/24/22^(b)		3,000,000		2,959,590
Seattle SpinCo, Inc. Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 06/21/24^(b).		408,237		409,088
Syncsort, Inc. Second Lien Initial Term Loan, (LIBOR + 9.00%, 1.00% Floor), 10.69%, 08/18/25^(b)		2,000,000		1,961,880
TIBCO Software, Inc. Term Loan B-1, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 12/04/20^(b)		1,997,931		2,006,262
Triple Point Group Holdings, Inc. First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.94%, 07/10/20^(b)		3,972,353		3,633,472

				30,833,831

HOTEL, GAMING & LEISURE - 2.9%

Equinox Holdings, Inc. Second Lien Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.57%, 09/06/24^(b)		272,109		281,633
Term Loan B-1, (LIBOR + 3.00%, 1.00% Floor), 4.57%, 03/08/24^(b)		1,596,015		1,612,645
Everi Payments, Inc. New Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 4.98%, 05/09/24^(b)		1,789,719		1,810,301
Mohegan Tribal Gaming Authority Term Loan A, (Variable + 3.75%, 0.00% Floor), 5.37%, 10/13/21^(b)		2,125,000		2,140,938
Scientific Games International, Inc. Term Loan B-4, (LIBOR + 3.25%, 0.00% Floor), 4.70%, 08/14/24^(b)		2,225,944		2,246,656

				8,092,173


	Principal Amount ($)		Value ($)

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 2.4%

Acosta, Inc. Tranche B-1, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 09/26/21^(b)		1,000,000		883,335
Advantage Sales & Marketing, Inc. First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.63%, 07/23/21^(b)(d)		997,423		974,981
ALM Media, LLC First Lien Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 6.19%, 07/31/20^(b)		2,994,191		2,619,917
F & W Media, Inc. Term Loan B-1 (8.07% PIK), (LIBOR + 6.50%, 1.50% Floor), 8.07%, 05/24/22^(b)(d)(e)(i)		341,609		341,609
Term Loan B-2 (11.57% PIK), (LIBOR + 10.00%, 1.50% Floor), 11.57%, 05/24/22^(b)(d)(e)(i)		833,733		312,054
Information Resources, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.62%, 01/18/24^(b)		1,492,519		1,502,160

				6,634,056

MEDIA: BROADCASTING & SUBSCRIPTION - 7.5%
CBS Radio, Inc. Term Loan B-1, (LIBOR + 2.75%, 0.00% Floor), 4.17%, 11/18/24^(b)		790,419		795,770
Emmis Operating Co. Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.37%, 04/18/19^(b)		565,410		551,275
Global Eagle Entertainment, Inc. Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.96%, 01/06/23^(b)		4,983,275		4,972,063
Hemisphere Media Holdings, LLC Term Loan B-1, (LIBOR + 3.50%, 0.00% Floor), 5.07%, 02/14/24^(b)		832,813		803,665
Radiate Holdco, LLC Closing Date Term Loan, (LIBOR + 3.00%, 0.75% Floor), 4.57%, 02/01/24^(b)(d)		492,585		489,640
First Lien Term Loan, (LIBOR + 3.00%, 0.75% Floor), 4.57%, 02/01/24^(b)(d)		2,785,135		2,759,888
SESAC Holdco II, LLC First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.80%, 02/23/24^(b)		1,246,859		1,237,508
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.73%, 02/24/25^(b)		868,956		857,008
Urban One, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.70%, 04/18/23^(b)		2,639,445		2,599,853

See accompanying Notes to Financial Statements. | 11

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


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

MEDIA: BROADCASTING & SUBSCRIPTION (continued)

William Morris Endeavor Entertainment , LLC Term Loan B, (LIBOR + 3.25%, 1.00% Floor), 4.64%, 05/06/21^(b)		5,666,896		5,702,315

				20,768,985


MEDIA: DIVERSIFIED & PRODUCTION - 1.4%

A-L Parent, LLC First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 12/01/23^(b)(d)		1,338,136		1,349,844
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.82%, 12/02/24^(b)(e)		500,000		505,000
DHX Media, Ltd. (Canada) Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 12/29/23^(b)(c)		1,990,000		1,997,463

				3,852,307


METALS & MINING - 0.0%

Magnetation, LLC / Mag Finance Corp. DIP Term Loan, 12.00%, 10/14/16^(e)(g)(h)		245,303		—


RETAIL - 9.1%

Academy, Ltd. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 07/01/22^(b)		2,956,179		2,340,924
Albertson’s, LLC Replacement 2017-1 Term Loan B-4, (LIBOR + 2.75%, 0.75% Floor), 4.32%, 08/25/21^(b)		1,994,987		1,958,369
Replacement 2017-1 Term Loan B-5, (LIBOR + 3.00%, 0.75% Floor), 4.67%, 12/21/22^(b)		2,017,658		1,980,513
Charming Charlie, LLC First Lien DIP Term Loan, (Prime + 3.50%, 1.00% Floor), 8.00%, 06/08/18^(b)(e)		309,997		309,997
Term Loan, (LIBOR + 8.00%, 1.00% Floor), 12.33%, 12/24/19^(b)(g)(j)		3,584,099		150,084
David’s Bridal, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.70%, 10/11/19^(b)(d)		3,971,168		3,486,110
J Crew Group, Inc. Consenting Amended Initial Loan, (LIBOR + 3.22%, 1.00% Floor), 4.85%, 03/05/21^(b)		432,342		261,351
JC Penney Corp., Inc. Initial Loan, (LIBOR + 4.25%, 1.00% Floor), 5.73%, 06/23/23^(b)		3,670,333		3,441,855


	Principal Amount ($)		Value ($)

RETAIL (continued)

Mister Car Wash Holdings, Inc. Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.63%, 08/20/21^(b)(d)		1,321,708		1,327,761
The Neiman Marcus Group, Inc. Other Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.64%, 10/25/20^(b)		1,065,718		873,228
Petco Animal Supplies, Inc. Second Amendment Term Loan, (LIBOR + 3.00%, 1.00% Floor), 4.38%, 01/26/23^(b)		5,486,041		4,165,962
PetSmart, Inc. Tranche B-2 Loan, (LIBOR + 3.00%, 1.00% Floor), 4.57%, 03/11/22^(b)(d)		235,001		188,773
Sears Roebuck Acceptance Corp. (KMART Corp.) 2017 Extended Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 01/20/19^(b)(d)		3,391,251		3,425,163
Vince, LLC Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.40%, 11/27/19^(b)		1,683,053		1,472,672

				25,382,762

SERVICES: BUSINESS - 21.6%

Air Medical Group Holdings, Inc. 2016 New Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.67%, 04/28/22^(b)		3,786,691		3,791,897
First Lien Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.68%, 09/26/24^(b)(d)		2,268,449		2,277,432
Americold Realty Operating Partnership, L.P. Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 12/01/22^(b)		3,578,836		3,623,589
Applied Systems, Inc. Second Lien Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.69%, 09/19/25^(b)		508,065		526,960
EIG Investors Corp. Refinancing Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.46%, 02/09/23^(b)		4,009,187		4,040,519
Electro Rent Corp. First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.62%, 01/31/24^(b)		2,097,858		2,126,703

12 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


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

SERVICES: BUSINESS (continued)

Evergreen Skills Lux S.A.R.L. (Luxembourg) First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.32%, 04/28/21^(b)(c)		6,000,000		5,793,210
Second Lien Initial Term Loan, (LIBOR + 8.25%, 1.00% Floor), 9.82%, 04/28/22^(b)(c)		999,917		892,011
Explorer Holdings, Inc. Refinancing Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.13%, 05/02/23^(b)		4,568,173		4,611,000
Garda World Security Corp. (Canada) New Incremental Term Loan B, (Variable + 3.50%, 1.00% Floor), 4.97%, 05/24/24^(b)(c)		1,106,613		1,114,221
IBC Capital, Ltd. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.29%, 09/09/21^(b)		2,977,041		2,981,134
International Car Wash Group, Ltd. (United Kingdom) First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.88%, 10/03/24^(b)(c)(e)		709,859		713,408
Second Lien Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.88%, 10/03/25^(b)(c)(e)		1,545,455		1,557,046
Michael Baker International, LLC Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.94%, 11/21/22^(b)		2,870,813		2,874,402
Navicure, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.11%, 11/01/24^(b)		791,878		791,878
Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.86%, 10/31/25^(b⁾		500,000		503,750
Onex Carestream Finance, L.P. First Lien Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 06/07/19^(b)		1,855,203		1,861,001
Second Lien Term Loan, (LIBOR + 8.50%, 1.00% Floor), 10.19%, 12/07/19^(b)		2,143,089		2,116,301
Paysafe Group PLC USD Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.15%, 12/02/24^(b)(d)		2,909,090		2,911,825
SGS Cayman L.P. Initial Cayman Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.07%, 04/23/21^(b)		784,349		754,936


	Principal Amount ($)		Value ($)

SERVICES: BUSINESS (continued)

SMG First Lien Term Loan, (Prime + 2.50%, 1.00% Floor), 7.00%, 02/27/20^(b)		2,274,688		2,281,808
Solera Holdings, Inc. Dollar Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 03/03/23^(b)		3,193,008		3,217,626
STG-Fairway Acquisitions, Inc. First Lien Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.94%, 06/30/22^(b)		2,514,689		2,493,729
Sutherland Global Services, Inc. Initial U.S. Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.07%, 04/23/21^(b)		3,369,523		3,243,166
U.S. Security Associates Holdings, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 07/14/23^(b)		2,976,368		3,016,058

				60,115,610

SERVICES: CONSUMER - 4.0%

Laureate Education, Inc. Series 2024 Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 04/26/24^(b)		3,586,570		3,623,189
NVA Holdings, Inc. First Lien Term Loan B-2, (LIBOR + 3.50%, 1.00% Floor), 5.19%, 08/14/21^(b)		2,165,387		2,186,142
Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.69%, 08/14/22^(b)		2,637,888		2,658,766
USS Ultimate Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 08/25/24^(b)(d)		684,879		690,303
Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.32%, 08/25/25^(b)(d)		1,884,615		1,905,817

				11,064,217

TELECOMMUNICATIONS - 11.2%

CenturyLink, Inc. Initial Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 06/20/22^(b)(d)		2,000,000		1,987,500
Initial Term Loan B, (LIBOR +2.75%, 0.00% Floor), 4.32%, 01/31/25^(b)(d)		2,500,000		2,415,625
Digicel International Finance, Ltd. (Saint Lucia) First Lien Initial Term Loan B, (LIBOR + 3.75%, 1.00% Floor), 5.31%, 05/27/24^(b)(c)		272,092		273,623

See accompanying Notes to Financial Statements. | 13

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

TELECOMMUNICATIONS (continued)

Frontier Communications Corp. Initial Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 03/31/21^(b)(d)		986,486		951,964
Term Loan B-1, (LIBOR + 3.75%,0.75% Floor), 5.32%, 06/15/24^(b)(d)		4,294,027		4,133,001
Global Tel*Link Corp. First Lien Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.69%, 05/23/20^(b)		7,977,006		8,016,930
Intelsat Jackson Holdings S.A. (Luxembourg) First Lien Term Loan B-4, (LIBOR + 4.50%, 1.00% Floor), 6.09%, 01/02/24^(b)(c)(d)		1,509,434		1,531,449
First Lien Term Loan B-5, 6.63%, 01/02/24^(c)(d)(h)		1,686,634		1,707,371
Tranche B-3 Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.21%, 11/27/23^(b)(c)(d)		1,660,772		1,629,633
Securus Technologies Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.12%, 11/01/24^(b)		2,123,636		2,150,192
Second Lien Initial Term Loan, (LIBOR + 8.25%, 1.00% Floor), 9.87%, 11/01/25^(b)		549,280		556,146
TierPoint, LLC First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 05/06/24^(b)		3,025,782		3,010,668
TVC Albany, Inc. Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 09/18/24^(b)(e)		498,750		501,867
U.S. TelePacific Corp. Advance Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 05/02/23^(b)		2,426,829		2,328,239

				31,194,208

TRANSPORTATION: CARGO - 1.9%

Avolon Holdings, Ltd. Initial Term Loan B-2, (LIBOR + 2.25%, 0.75% Floor), 3.75%, 03/21/22^(b)		2,493,734		2,479,121
Transplace Holdings, Inc. First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.64%, 10/07/24^(b)		2,746,305		2,777,201

				5,256,322

TRANSPORTATION: CONSUMER - 0.6%

Travel Leaders Group, LLC Term Loan B, (LIBOR + 4.50%, 0.00% Floor), 5.92%, 01/25/24^(b)		1,740,185		1,767,384


	Principal Amount ($)		Value ($)

UTILITIES: ELECTRIC - 3.3%

Green Energy Partners Advance Conversion Term Loan B-1, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 11/13/21^(b)(d)(e)		1,601,693		1,569,659
Construction B-2 Facility, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 11/13/21^(b)(e)		340,057		333,256
Helix Gen Funding, LLC Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.44%, 06/03/24^(b)		1,184,545		1,189,786
Moxie Patriot, LLC Construction B-1 Facility, (LIBOR + 5.75%, 1.00% Floor), 7.44%, 12/19/20^(b)		2,155,727		2,123,391
Panda Liberty, LLC Construction B-1 Facility, (LIBOR + 6.50%, 1.00% Floor), 8.19%, 08/21/20^(b)		2,393,571		2,208,069
Pike Corporation Initial Term Loan 2017, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 09/20/24^(b)		859,765		873,375
WG Partners Acquisition, LLC Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 5.19%, 11/15/23^(b)		839,501		842,649

				9,140,185

Total Senior Loans (Cost $384,101,680)				377,158,658


Corporate Notes and Bonds - 11.8%^(h)

AUTOMOTIVE - 1.4%

Tesla, Inc. 5.30%, 08/15/25^(k)		4,000,000		3,835,000


BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.0%

Donnelley Financial Solutions, Inc. 8.25%, 10/15/24		2,476,000		2,655,510

CONTAINERS, PACKAGING & GLASS - 0.7%

Reynolds Group Holdings, Inc. 6.88%, 02/15/21		1,999,498		2,029,490

HEALTHCARE & PHARMACEUTICALS - 1.4%

Valeant Pharmaceuticals
International, Inc. (Canada) 5.50%, 11/01/25^(c)(k)		1,000,000		1,022,500
5.63%, 12/01/21(c)(k)		1,000,000		981,250
7.50%, 07/15/21^(c)(k)		1,000,000		1,020,000
West Street Merger Sub, Inc. 6.38%, 09/01/25^(k)		1,000,000		1,007,500

				4,031,250

HIGH TECH INDUSTRIES - 1.1%

Riverbed Technology, Inc. 8.88%, 03/01/23^(k)		2,000,000		1,895,000
RP Crown Parent, LLC 7.38%, 10/15/24^(k)		1,000,000		1,050,000

				2,945,000

14 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017


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

HOTEL, GAMING & LEISURE - 0.4%

Scientific Games International, Inc. 7.00%, 01/01/22^(k)		1,000,000		1,056,250

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.3%

Acosta, Inc. 7.75%, 10/01/22^(k)		1,000,000		735,000

MEDIA: BROADCASTING & SUBSCRIPTION - 2.0%

CSC Holdings, LLC 10.13%, 01/15/23^(k)		105,000		118,519
10.88%, 10/15/25^(k)		293,000		349,403
SiTV, Inc.
10.38%, 07/01/19^(k)		2,544,000		1,729,920
Univision Communications, Inc. 5.13%, 02/15/25^(k)		2,000,000		1,952,500
Urban One, Inc. 7.38%, 04/15/22^(k)		1,357,000		1,360,393

				5,510,735

METALS & MINING - 0.0%

ERP Iron Ore, LLC
LIBOR +, 8.00%, 12/31/19^(e)		33,604		8,775
Magnetation, LLC / Mag
Finance Corp. 11.00%, 05/15/18^(e)(g)(k)(l)		639,000		—

				8,775

RETAIL - 0.2%

PetSmart, Inc. 5.88%, 06/01/25^(k)		765,000		590,963

SERVICES: BUSINESS - 1.2%

Camelot Finance S.A.
(Luxembourg) 7.88%, 10/15/24^(c)(k)		1,080,000		1,155,600
EIG Investors Corp. 10.88%, 02/01/24		2,000,000		2,230,000

				3,385,600

TELECOMMUNICATIONS - 2.1%

GTT Communications, Inc. 7.88%, 12/31/24^(k)		1,788,000		1,890,810
Orbcomm, Inc. 8.00%, 04/01/24^(k)		3,694,000		3,957,197

				5,848,007

Total Corporate Notes and Bonds (Cost $33,101,250)				32,631,580


	Share Quantity		Value ($)
Common Stocks - 0.0%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.0%

Medical Card System, Inc.^(e)(g)		991,230		18,987

ENERGY: OIL & GAS - 0.0%

Southcross Holdings Borrower, GP LLC^(e)(g)		129		—
Southcross Holdings Borrower, LP, Class A-II^(e)(g)		129		49,988

				49,988

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%

F & W Media,Inc.^(e)(g)		9,510		—


Total Common Stock (Cost $58,051)				68,975


Preferred Stock - 1.4%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.4%
Watford Holdings, Ltd. (Bermuda) 8.50% ^(c)(e)(k)		160,000		3,915,225

Total Preferred Stock (Cost $3,920,000)				3,915,225


Total Investments-148.8% (Cost of $421,180,981)				413,774,438
Other Assets & Liabilities, Net-1.8%				4,997,343
Loan Outstanding-(50.6)%^(m)(n)				(140,701,903	)


Net Assets (Applicable to Common Shares)-100.0%				278,069,878

See accompanying Notes to Financial Statements. | 15

Apollo Senior Floating Rate Fund Inc.

Schedule of Investments (continued)

December 31, 2017

^(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, 2017. 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)

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”) 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/Prime rate. As of December 31, 2017, the 1, 3 and 6 month LIBOR rates were 1.56%, 1.69% and 1.84%, respectively, and the Prime lending rate was 4.50%. Senior Loans may contain multiple contracts of the same issuer which may be subject to base lending rates of both LIBOR and Prime (“Variable”) in addition to the stated spread.

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

^(d)	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.

^(e)	Fair Value Level 3 security.

^(f)	The issuer is in default of its payment obligations as of June 7, 2017, as such, income is no longer being accrued.

^(g)	Non-income producing asset.

^(h)	Fixed rate asset.

⁽ⁱ⁾	Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amount.

^(j)	The issuer is in default of its payment obligations as of December 11, 2017, as such, income is no longer being accrued.

^(k)	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, 2017, these securities amounted to $29,623,030, or 10.7% of net assets.

^(l)	The issuer is in default of its payment obligations as of May 5, 2015, as such, income is no longer being accrued.

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

⁽ⁿ⁾	Principal $141,000,000 less unamortized deferred financing costs of $298,097.

16 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments

December 31, 2017


	Principal Amount ($)		Value ($)
Senior Loans - 122.2%^(a)

AEROSPACE & DEFENSE - 3.4%

MRO Holdings, Inc. Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.94%, 10/25/23^(b)		600,000		605,250
PAE Holding Corp. First Lien Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 7.12%, 10/20/22^(b)		1,942,500		1,957,680
Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 11.12%, 10/20/23^(b)		1,404,836		1,413,616
Photonis Technologies SAS (France) First Lien Initial Dollar Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.19%, 09/18/19^(b)(c)		1,887,413		1,658,564
Sequa Mezzanine Holdings, LLC First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.55%, 11/28/21^(b)		1,396,652		1,408,733
StandardAero Aviation Holdings, Inc. Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 07/07/22^(b)		1,626,487		1,641,402

				8,685,245

AUTOMOTIVE - 3.2%

AP Exhaust Acquisition, LLC First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.41%, 05/10/24^(b)		5,331,194		5,271,245
CH Hold Corp. Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.82%, 02/03/25^(b)		500,000		511,250
Innovative XCessories & Services, LLC Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.21%, 11/29/22^(b)(d)		2,245,073		2,273,136

				8,055,631

BANKING, FINANCE, INSURANCE & REAL ESTATE - 5.7%
AqGen Ascensus, Inc. Replacement Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 12/05/22^(b)		1,994,962		2,005,775
Asurion, LLC Second Lien Replacement Term Loan B-2, (LIBOR + 6.00%, 0.00% Floor), 7.57%, 08/04/25^(b)		2,117,647		2,180,509
CRCI Holdings, Inc. Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 08/31/23^(b)		2,086,480		2,094,305


	Principal Amount ($)		Value ($)
BANKING, FINANCE, INSURANCE & REAL ESTATE (continued)

Medical Card System, Inc. Term Loan, (LIBOR + 0.50%, 1.00% Floor), 1.50%, 05/31/19^(b)(e)		4,913,829		4,027,485
Mitchell International, Inc. Second Lien Initial Term Loan, (LIBOR + 7.25%, 0.00% Floor), 8.94%, 12/01/25^(b)(d)		1,136,979		1,149,906
MMM Holdings, Inc. MMM Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.32%, 06/30/19^(b)		890,532		865,299
MSO of Puerto Rico, Inc. MSO Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.32%, 06/30/19^(b)		647,412		629,068
SG Acquisition, Inc. Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 03/29/24^(b)		1,341,955		1,333,567
SquareTwo Financial Corp. Closing Date Term Loan, (LIBOR +10.00%, 1.00% Floor), 11.00%, 05/24/19^(b)(e)(f)(g)		1,102,885		61,118

				14,347,032

BEVERAGE, FOOD & TOBACCO - 3.4%

Arctic Glacier Group Holdings, Inc. Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 03/20/24^(b)		496,250		502,453
The Chef’s Warehouse, Inc. Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 06/22/22^(b)		1,076,516		1,083,245
JBS USA, LLC Initial Term Loan, (LIBOR + 2.50%, 0.75% Floor), 4.10%, 10/30/22^(b)(d)		1,992,475		1,960,844
PFS Holding Corp. First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 01/31/21^(b)		2,289,055		1,626,373
Winebow Holdings, Inc. (The Vintner Group, Inc.) First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 07/01/21^(b)		1,066,103		1,050,778
Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.07%, 01/02/22^(b)(e)		2,505,795		2,367,976

				8,591,669

CAPITAL EQUIPMENT - 1.4%

MTS Systems Corporation New Tranche B Term Loan, (LIBOR + 3.25%, 0.75% Floor), 4.69%, 07/05/23^(b)		2,114,942		2,136,092

See accompanying Notes to Financial Statements. | 17

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


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

CAPITAL EQUIPMENT (continued)

Robertshaw US Holding Corp. First Lien Initial Term Loan, (LIBOR + 4.50%, 0.00% Floor), 6.13%, 08/10/24^(b)		1,496,250		1,511,213

				3,647,305

CHEMICALS, PLASTICS & RUBBER - 3.0%

ASP Chromaflo Intermediate
Holdings, Inc. First Lien Initial Tranche B-2 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 11/20/23^(b)		424,137		427,053
Initial Tranche B-1 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 11/20/23^(b)		326,179		328,422
Niacet Corporation First Lien Initial Dollar Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.19%, 02/01/24^(b)(e)		708,928		710,700
PetroChoice Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.42%, 08/19/22^(b)		992,200		1,000,881
SK Spice S.A.R.L (Luxembourg) Facility B-2, (LIBOR + 4.25%, 0.00% Floor), 5.60%, 08/12/24^(b)(c)		2,121,906		2,134,276
Vantage Specialty Chemicals, Inc. First Lien Closing Date Loan, (LIBOR + 4.00%, 1.00% Floor), 5.37%, 10/28/24^(b)		1,607,143		1,620,201
Second Lien Initial Loan, (LIBOR + 8.25%, 1.00% Floor), 9.62%, 10/27/25^(b)		1,367,088		1,346,582

				7,568,115

CONSTRUCTION & BUILDING - 2.1%

Associated Asphalt Partners, LLC Tranche B Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.82%, 04/05/24^(b)(d)		1,527,977		1,394,279
Henry Company, LLC Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 10/05/23^(b)		866,919		875,948
Morsco, Inc. Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.57%, 10/31/23^(b)		987,342		1,007,089
Terra Millenium Corp. First Out Term Loan, (LIBOR + 6.25%, 1.00% Floor), 7.88%, 10/31/22^(b)(e)		1,950,000		1,959,750

				5,237,066


	Principal Amount ($)		Value ($)
CONSUMER GOODS: DURABLE - 1.6%

Hayward Acquisition Corp. Initial Term Loan, (LIBOR + 3.50%, 0.00% Floor), 5.07%, 08/05/24^(b)		2,420,243		2,429,319
PT Holdings, LLC Initial Loan, (LIBOR + 8.00%, 1.00% Floor), 9.57%, 12/08/25^(b)(d)		625,000		628,125
Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 12/09/24^(b)(d)		1,000,000		1,005,940

				4,063,384

CONSUMER GOODS: NON-DURABLE - 3.9%

ABG Intermediate Holdings 2, LLC First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.19%, 09/27/24^(b)		2,460,329		2,474,168
Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.44%, 09/29/25^(b)		507,286		514,895
LTI Holdings, Inc. First Lien Initial Term Loan, (Variable + 4.75%, 1.00% Floor), 6.32%, 05/16/24^(b)		4,037,664		4,070,470
Parfums Holding Co., Inc. First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.44%, 06/30/24^(b)(d)		1,763,506		1,780,400
Revlon Consumer Products Corp. Initial Term Loan B, (LIBOR + 3.50%, 0.75% Floor), 5.07%, 09/07/23^(b)		1,492,978		1,116,934

				9,956,867

CONTAINERS, PACKAGING & GLASS - 2.4%

Anchor Glass Container Corp. Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.18%, 12/07/24^(b)		1,083,333		1,097,774
Hoover Group, Inc. First Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.70%, 01/28/21^(b)(e)		755,896		695,424
SMI Acquisition, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.13%, 11/01/24^(b)		1,050,000		1,056,127
Sprint Industrial Holdings, LLC First Lien Term Loan, (LIBOR + 5.75%, 1.25% Floor), 7.44%, 05/14/19^(b)		3,360,025		3,141,624

				5,990,949

ENERGY: OIL & GAS - 3.2%

American Energy - Marcellus, LLC First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.71%, 08/04/20^(b)(g)(h)		1,306,817		975,755

18 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

ENERGY: OIL & GAS (continued)
Azure Midstream Energy, LLC Term Loan, (LIBOR + 6.50%, 1.00% Floor), 8.07%, 11/15/18^(b).		426,965		386,531
HGIM Corp. Senior Secured Term Loan A, (Prime + 3.25%, 1.00% Floor), 7.75%, 06/18/18^(b)(g)		398,725		160,487
Moss Creek Resources, LLC Initial Term Loan, (LIBOR + 8.00%, 1.50% Floor), 9.50%, 04/07/22^(b)(e)		5,000,000		5,000,000
Sheridan Investment Partners I, LLC Deferred Principal Facility I, 10/01/19^(e)(g)		4,749		2,850
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		443,042		368,463
Sheridan Production Partners I-A, L.P. Deferred Principal Facility I-A, 10/01/19^(e)(g)		629		378
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		58,707		48,824
Sheridan Production Partners I-M, L.P. Deferred Principal Facility I-M, 10/01/19^(e)(g)		384		231
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.01%, 10/01/19^(b)		35,858		29,822
Southcross Holdings Borrower, LP Tranche B Term Loan (5.50% PIK), 9.00%, 04/13/23^(i)(j)		125,062		123,108
Traverse Midstream Partners, LLC Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.85%, 09/27/24		926,471		940,021

				8,036,470


ENVIRONMENTAL INDUSTRIES - 1.2%
Emerald 2, Ltd. (United Kingdom) Facility B-1, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 05/14/21^(b)(c)(d)		3,091,110		3,091,110


HEALTHCARE & PHARMACEUTICALS - 16.4%

Argon Medical Devices, Inc. First Lien Term Loan B, (LIBOR + 3.75%, 1.00% Floor), 4.75%, 10/27/24^(b)(d)		1,563,830		1,576,536
ATI Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.85%, 05/10/23^(b)		709,576		716,672


	Principal Amount ($)		Value ($)

HEALTHCARE & PHARMACEUTICALS (continued)

Bioclinica, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.63%, 10/20/23^(b)		2,217,824		2,173,467
CT Technologies Intermediate Hldgs, Inc. Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 12/01/21^(b)		3,238,240		3,236,232
Diplomat Pharmacy, Inc. Initial Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 6.04%, 12/13/24^(b)(d)		913,043		921,032
Endo Luxembourg Finance I Co. S.A.R.L Initial Term Loan, (LIBOR + 4.25%, 0.75% Floor), 5.88%, 04/29/24^(b)		3,082,061		3,106,147
Equian, LLC Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.23%, 05/20/24^(b)		868,363		877,594
Lanai Holdings II, Inc. First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.23%, 08/29/22^(b)(d)		3,697,157		3,549,271
Lanai Holdings III, Inc. Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.98%, 08/28/23^(b)		869,565		804,348
Lantheus Medical Imaging, Inc. New Term Loan B 2017, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 06/30/22^(b)		1,043,475		1,052,824
Medical Solutions Holdings, Inc. First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.82%, 06/14/24^(b)		5,083,624		5,140,815
Second Lien Closing Date Loan, (LIBOR + 8.25%, 1.00% Floor), 9.82%, 06/16/25^(b)		2,000,000		1,990,000
Nmsc Holdings, Inc. Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 04/19/23^(b)		561,524		553,101
Onex Schumacher Finance, L.P. First Lien Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 07/29/22^(b)(d)		1,550,873		1,531,487
Opal Acquisition, Inc. First Lien Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.53%, 11/27/20^(b)		4,621,324		4,345,962
PharMerica Corporation First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.90%, 12/06/24^(b)		1,732,523		1,743,784

See accompanying Notes to Financial Statements. | 19

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

HEALTHCARE & PHARMACEUTICALS (continued)
Premier Dental Services, Inc. Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.82%, 06/30/23^(b)(d)		1,006,428		1,014,922
Quorum Health Corp. Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.32%, 04/29/22^(b)		2,658,042		2,691,267
U.S. Renal Care, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.94%, 12/30/22^(b)		3,976,797		3,927,087
Valeant Pharmaceuticals International, Inc. (Canada) Tranche B Term Loan, Series F-4, (LIBOR + 3.50%, 0.75% Floor), 4.94%, 04/01/22^(b)(c)		370,445		376,148

				41,328,696

HIGH TECH INDUSTRIES - 10.4%
Aptean, Inc. Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 11.20%, 12/20/23^(b)		470,000		473,135
Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.95%, 12/20/22^(b).		2,145,103		2,165,664
Aricent Technologies First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.97%, 04/14/21^(b)		3,464,479		3,481,801
Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.97%, 04/14/22^(b)		1,211,538		1,223,048
Aspect Software, Inc. First Lien Exit Term Loan, (LIBOR + 10.50%, 1.00% Floor), 12.07%, 05/25/20^(b)		1,568,524		1,548,917
DigiCert Holding, Inc. First Lien Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.13%, 10/31/24^(b)		1,895,411		1,922,060
Second Lien Term Loan, (LIBOR + 8.00%, 1.00% Floor), 9.38%, 10/31/25^(b)		1,514,727		1,526,330
DTI Holdco, Inc. Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.63%, 10/02/23^(b)		997,475		996,228
Flexera Software, LLC Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.57%, 04/02/21^(b)		1,987,902		1,997,841
Gigamon, Inc. First Lien Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.03%, 12/19/24^(b)(d)		1,714,285		1,705,714


	Principal Amount ($)		Value ($)

HIGH TECH INDUSTRIES (continued)
Misys, Ltd. (United Kingdom) Second Lien Dollar Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.73%, 06/13/25^(b)(c)		500,000		502,750
Riverbed Technology, Inc. First Amendment Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 04/24/22^(b)		3,019,407		2,978,735
Syncsort, Inc. Second Lien Initial Term Loan, (LIBOR + 9.00%, 1.00% Floor), 10.69%, 08/18/25^(b)		2,000,000		1,961,880
Triple Point Group Holdings, Inc. First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.94%, 07/10/20^(b)		3,972,353		3,633,472

				26,117,575

HOTEL, GAMING & LEISURE - 2.1%
Everi Payments, Inc. New Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 4.98%, 05/09/24^(b)		1,789,719		1,810,301
Mohegan Tribal Gaming Authority Term Loan A, (Variable + 3.75%, 0.00% Floor), 5.37%, 10/13/21^(b).		2,125,000		2,140,938
Scientific Games International, Inc. Term Loan B-4, (LIBOR + 3.25%, 0.00% Floor), 4.70%, 08/14/24^(b).		1,410,199		1,423,321

				5,374,560

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 2.6%
Acosta, Inc. Tranche B-1 Loan, (LIBOR + 3.25%, 1.00% Floor), 4.82%, 09/26/21^(b)		1,000,000		883,335
Advantage Sales & Marketing, Inc. First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.63%, 07/23/21^(b)(d)		997,423		974,981
ALM Media, LLC First Lien Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 6.19%, 07/31/20^(b)		2,994,191		2,619,917
F & W Media, Inc. Term Loan B-1 (8.07% PIK), (LIBOR + 6.50%, 1.50% Floor), 8.07%, 05/24/22^(b)(e)(j)		341,609		341,609
Term Loan B-2 (11.57% PIK), (LIBOR + 10.00%, 1.50% Floor), 11.57%, 05/24/22^(b)(e)(j)		833,733		312,054
Information Resources, Inc. First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.62%, 01/18/24^(b)		1,492,519		1,502,160

				6,634,056

20 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

MEDIA: BROADCASTING & SUBSCRIPTION - 5.4%
Emmis Operating Co. Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.37%, 04/18/19^(b).		565,410		551,275
Global Eagle Entertainment, Inc. Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.96%, 01/06/23^(b)		4,982,413		4,971,203
Hemisphere Media Holdings, LLC Term Loan B-1, (LIBOR + 3.50%, 0.00% Floor), 5.07%, 02/14/24^(b).		490,266		473,107
Radiate Holdco, LLC Closing Date Term Loan, (LIBOR + 3.00%, 0.75% Floor), 4.57%, 02/01/24^(b)(d)		492,585		489,640
First Lien Term Loan, (LIBOR + 3.00%, 0.75% Floor), 4.57%, 02/01/24^(b)(d)		2,785,135		2,759,888
SESAC Holdco II, LLC First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.80%, 02/23/24^(b)		1,246,859		1,237,508
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.73%, 02/24/25^(b)		648,285		639,371
Urban One, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.70%, 04/18/23^(b)		2,639,445		2,599,853
				13,721,845
MEDIA: DIVERSIFIED & PRODUCTION - 0.2%
A-L Parent, LLC Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.82%, 12/02/24^(b)(e)		500,000		505,000

METALS & MINING - 0.0%
Magnetation, LLC / Mag Finance Corp. DIP Term Loan, 12.00%, 10/14/16^(e)(g)(i)		1,127,504		—

RETAIL - 8.8%
Academy, Ltd. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.57%, 07/01/22^(b)		2,956,179		2,340,924
Albertson’s, LLC Replacement 2017-1 Term Loan B-4, (LIBOR + 2.75%, 0.75% Floor), 4.32%, 08/25/21^(b)		997,494		979,185
Charming Charlie, LLC First Lien DIP Term Loan, (Prime + 3.50%, 1.00% Floor), 8.00%, 06/08/18^(b)(e)		93,419		93,419
Term Loan (3.00% PIK), (LIBOR + 8.00%, 1.00% Floor), 12.33%, 12/24/19^(b)(g)(k)		1,080,081		45,228


	Principal Amount ($)		Value ($)

RETAIL (continued)

David’s Bridal, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.70%, 10/11/19^(b)(d)		3,971,168		3,486,110
J Crew Group, Inc. Consenting Amended Initial Loan, (LIBOR + 3.22%, 1.00% Floor), 4.85%, 03/05/21^(b)		432,342		261,351
JC Penney Corp., Inc. Initial Loan, (LIBOR + 4.25%, 1.00% Floor), 5.73%, 06/23/23^(b).		3,682,517		3,453,280
Mister Car Wash Holdings, Inc. Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.63%, 08/20/21^(b)(d)		1,321,708		1,327,761
The Neiman Marcus Group, Inc. Other Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.64%, 10/25/20^(b)		1,065,718		873,228
Petco Animal Supplies, Inc. Second Amendment Term Loan, (LIBOR + 3.00%, 1.00% Floor), 4.38%, 01/26/23^(b)		5,486,041		4,165,962
PetSmart, Inc. Tranche B-2 Loan, (LIBOR + 3.00%, 1.00% Floor), 4.57%, 03/11/22^(b)(d)		235,001		188,773
Sears Roebuck Acceptance Corp. (KMART Corp.) 2017 Extended Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 01/20/19^(b)		3,391,251		3,425,163
Vince, LLC Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.40%, 11/27/19^(b)		1,683,053		1,472,672
				22,113,056
SERVICES: BUSINESS - 21.7%
Air Medical Group Holdings, Inc. 2016 New Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.67%, 04/28/22^(b)		3,287,954		3,292,475
First Lien Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.68%, 09/26/24^(b)(d)		2,268,449		2,277,432
Americold Realty Operating Partnership, L.P. Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 12/01/22^(b)		3,578,836		3,623,589
EIG Investors Corp. Refinancing Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.46%, 02/09/23^(b)		4,009,187		4,040,519
Electro Rent Corp. First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.62%, 01/31/24^(b)		2,097,858		2,126,703

See accompanying Notes to Financial Statements. | 21

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

SERVICES: BUSINESS (continued)
Evergreen Skills Lux S.A.R.L. (Luxembourg) First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.32%, 04/28/21^(b)(c)		6,000,000		5,793,210
Second Lien Initial Term Loan, (LIBOR + 8.25%, 1.00% Floor), 9.82%, 04/28/22^(b)(c)		999,917		892,011
Explorer Holdings, Inc. Refinancing Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.13%, 05/02/23^(b)		4,069,439		4,107,590
Garda World Security Corp. (Canada) New Incremental Term Loan B, (Variable + 3.50%, 1.00% Floor), 4.97%, 05/24/24^(b)(c)		1,106,613		1,114,221
IBC Capital, Ltd. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.29%, 09/09/21^(b)		2,977,041		2,981,134
International Car Wash Group, Ltd. (United Kingdom) First Lien Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 4.88%, 10/03/24^(b)(c)(e)		709,859		713,408
Second Lien Term Loan B, (LIBOR + 7.50%, 1.00% Floor), 8.88%, 10/03/25^(b)(c)(e)		545,455		549,546
Michael Baker International, LLC Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.94%, 11/21/22^(b)		2,870,813		2,874,402
Navicure, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.11%, 11/01/24^(b)		791,878		791,878
Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.86%, 10/31/25^(b)		500,000		503,750
Onex Carestream Finance, L.P. First Lien Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 06/07/19^(b)		1,928,927		1,934,955
Second Lien Term Loan, (LIBOR + 8.50%, 1.00% Floor), 10.19%, 12/07/19^(b)		2,143,089		2,116,301
Paysafe Group PLC USD Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.15%, 12/02/24^(b)(d)		2,909,090		2,911,825
SGS Cayman L.P. Initial Cayman Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.07%, 04/23/21^(b)		784,349		754,936


	Principal Amount ($)		Value ($)

SERVICES: BUSINESS (continued)
SMG Second Lien Term Loan, (Prime + 7.25%, 1.00% Floor), 11.75%, 02/27/21^(b)		2,458,634		2,464,781
STG-Fairway Acquisitions, Inc. First Lien Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.94%, 06/30/22^(b)		2,514,689		2,493,729
Sutherland Global Services, Inc. Initial U.S. Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.07%, 04/23/21^(b)		3,369,523		3,243,166
U.S. Security Associates Holdings, Inc. Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 07/14/23^(b)		2,976,368		3,016,058

				54,617,619

SERVICES: CONSUMER - 3.1%
Laureate Education, Inc. Series 2024 Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.07%, 04/26/24^(b)		3,586,570		3,623,189
NVA Holdings, Inc. Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.69%, 08/14/22^(b)		1,637,888		1,650,851
USS Ultimate Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 08/25/24^(b)(d)		684,879		690,303
Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.32%, 08/25/25^(b)(d)		1,884,615		1,905,817

				7,870,160

TELECOMMUNICATIONS - 10.7%
CenturyLink, Inc. Initial Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 06/20/22^(b)(d)		1,500,000		1,490,625
Initial Term Loan B, (LIBOR + 2.75%, 0.00% Floor), 4.32%, 01/31/25^(b)(d)		2,500,000		2,415,625
Digicel International Finance, Ltd. (Saint Lucia) First Lien Initial Term Loan B, (LIBOR + 3.75%, 1.00% Floor), 5.31%, 05/27/24^(b)(c)		272,092		273,623
Frontier Communications Corp. Term Loan B-1, (LIBOR + 3.75%, 0.75% Floor), 5.32%, 06/15/24^(b)(d)		4,294,027		4,133,001
Global Tel*Link Corp. First Lien Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.69%, 05/23/20^(b)		4,989,144		5,014,115

22 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

TELECOMMUNICATIONS (continued)

Intelsat Jackson Holdings S.A. (Luxembourg) First Lien Term Loan B-4, (LIBOR + 4.50%, 1.00% Floor), 6.09%, 01/02/24^(b)(c)(d)		1,509,434		1,531,449
First Lien Term Loan B-5, 6.63%, 01/02/24^(c)(d)(i)		1,901,439		1,924,817
Tranche B-3 Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.21%, 11/27/23^(b)(c)(d)		2,360,044		2,315,794
Securus Technologies Holdings, Inc. First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.12%, 11/01/24^(b)		2,123,636		2,150,192
TierPoint, LLC First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.32%, 05/06/24^(b)(d)		2,823,509		2,809,405
TVC Albany, Inc. Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.69%, 09/18/24^(b)(e)		498,750		501,867
U.S. TelePacific Corp. Advance Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.69%, 05/02/23^(b)		2,426,829		2,328,239
				26,888,752

TRANSPORTATION: CARGO - 2.1%
Avolon Holdings, Ltd. Initial Term Loan B-2, (LIBOR + 2.25%, 0.75% Floor), 3.75%, 03/21/22^(b)		2,493,734		2,479,121
Transplace Holdings, Inc. First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.64%, 10/07/24^(b)		2,746,305		2,777,201
				5,256,322

TRANSPORTATION: CONSUMER - 0.6%
Travel Leaders Group, LLC Term Loan B, (LIBOR + 4.50%, 0.00% Floor), 5.92%, 01/25/24^(b)		1,479,595		1,502,721

UTILITIES: ELECTRIC - 3.6%

Green Energy Partners Advance Conversion Term Loan B-1, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 11/13/21^(b)(d)(e)		1,601,693		1,569,659
Construction B-2 Facility, (LIBOR + 5.50%, 1.00% Floor), 7.19%, 11/13/21^(b)(e)		340,057		333,256
Helix Gen Funding, LLC Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.44%, 06/03/24^(b)		1,184,545		1,189,786


	Principal Amount ($)		Value ($)

UTILITIES: ELECTRIC (continued)

Moxie Patriot, LLC Construction B-1 Facility, (LIBOR + 5.75%, 1.00% Floor), 7.44%, 12/19/20^(b)		2,155,727		2,123,391
Panda Liberty, LLC Construction B-1 Facility, (LIBOR + 6.50%, 1.00% Floor), 8.19%, 08/21/20^(b)		2,393,571		2,208,069
Pike Corporation Initial Term Loan 2017, (LIBOR + 3.50%, 1.00% Floor), 5.07%, 09/20/24^(b)		859,765		873,375
WG Partners Acquisition, LLC Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 5.19%, 11/15/23^(b)		839,501		842,649
				9,140,185
Total Senior Loans (Cost $311,798,068)				308,341,390

Corporate Notes and Bonds - 16.1%⁽ⁱ⁾

AUTOMOTIVE - 1.5%

Tesla, Inc. 5.30%, 08/15/25^(l)		4,000,000		3,835,000

BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.7%

Donnelley Financial Solutions, Inc. 8.25%, 10/15/24		2,476,000		2,655,510
Greystar Real Estate Partners, LLC 5.75%, 12/01/25^(l)		1,500,000		1,548,750
				4,204,260

CHEMICALS, PLASTICS & RUBBER - 0.8%

TPC Group, Inc. (Texas Petrochemical) 8.75%, 12/15/20^(l)		2,007,000		2,017,035

CONTAINERS, PACKAGING & GLASS - 0.8%

Reynolds Group Holdings, Inc. 6.88%, 02/15/21		2,000,146		2,030,148

ENERGY: OIL & GAS - 0.2%

Northern Oil and Gas, Inc. 8.00%, 06/01/20		729,000		561,330

HEALTHCARE & PHARMACEUTICALS - 1.2%

Valeant Pharmaceuticals International, Inc. (Canada) 5.50%, 11/01/25^(c)(l)		1,000,000		1,022,500
5.63%, 12/01/21^(c)(l)		1,000,000		981,250
7.50%, 07/15/21^(c)(l)		1,000,000		1,020,000
				3,023,750

HIGH TECH INDUSTRIES - 1.2%

Riverbed Technology, Inc. 8.88%, 03/01/23^(l)		2,000,000		1,895,000
RP Crown Parent, LLC 7.38%, 10/15/24^(l)		1,000,000		1,050,000
				2,945,000

See accompanying Notes to Financial Statements. | 23

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Corporate Notes and Bonds⁽ⁱ⁾(continued)

HOTEL, GAMING & LEISURE - 1.7%

Churchill Downs, Inc. 4.75%, 01/15/28^(l)		2,000,000		1,996,900
Hilton Grand Vacations Borrower, LLC 6.13%, 12/01/24^(l)		1,100,000		1,205,875
Scientific Games International, Inc. 7.00%, 01/01/22^(l)		1,086,000		1,147,087
				4,349,862

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.3%

Acosta, Inc. 7.75%, 10/01/22^(l)		1,000,000		735,000

MEDIA: BROADCASTING & SUBSCRIPTION - 2.6%

CSC Holdings, LLC 10.13%, 01/15/23^(l)		317,000		357,814
10.88%, 10/15/25^(l)		477,000		568,823
SiTV, Inc. 10.38%, 07/01/19^(l)		2,544,000		1,729,920
Univision Communications, Inc. 5.13%, 02/15/25^(l)		3,000,000		2,928,750
Urban One, Inc. 7.38%, 04/15/22^(l)		882,000		884,205
				6,469,512

METALS & MINING - 0.0%

ERP Iron Ore, LLC LIBOR +, 8.00%, 12/31/19^(e)		154,458		40,335
Magnetation, LLC / Mag Finance Corp. 11.00%, 05/15/18^(e)(g)(l)(m)		2,937,000		—
				40,335

RETAIL - 0.5%

PetSmart, Inc. 5.88%, 06/01/25^(l)		765,000		590,963
8.88%, 06/01/25^(l)		1,000,000		607,500
				1,198,463

SERVICES: BUSINESS - 1.3%

Camelot Finance S.A. (Luxembourg) 7.88%, 10/15/24^(c)(l)		1,080,000		1,155,600
EIG Investors Corp. 10.88%, 02/01/24		2,000,000		2,230,000
				3,385,600
TELECOMMUNICATIONS - 2.3%
GTT Communications, Inc. 7.88%, 12/31/24^(l)		1,788,000		1,890,810


	Principal Amount ($)		Value ($)

TELECOMMUNICATIONS (continued)
Orbcomm, Inc. 8.00%, 04/01/24^(l)		3,694,000		3,957,197
				5,848,007
Total Corporate Notes and Bonds (Cost $41,177,521)				40,643,302

Structured Products - 13.7%⁽ⁿ⁾
Anchorage Capital CLO, Ltd. (Cayman Islands)
Series 2015-6A, Class ER, 7.71%, 07/15/30^(c)(l)(o)		4,400,000		4,450,908
Babson CLO Ltd. (Cayman Islands)
Series 2014-IA, Class E, 7.01%, 07/20/25(c)(l)(o)		1,110,000		1,063,999
Guggenheim 1828 CLO, LLC (Cayman Island)
Series 2016-1A, Class D, 8.36%, 04/15/28^(c)(l)(o)		4,000,000		4,043,544
Ivy Hill Middle Market Credit Fund, Ltd. (Cayman Islands)
Series 10A, Class D2, 8.65%, 07/24/27^(c)(l)(o)		2,350,000		2,349,843
JFIN CLO, Ltd. (Cayman Islands)
Series 2015-1A, Class E, 6.59%, 03/15/26^(c)(l)(o)		4,500,000		4,409,280
NXT Capital CLO, LLC
Series 2014-1A, Class E, 6.86%, 04/23/26^(l)(o)		5,000,000		4,514,620
NZCG Funding, Ltd. (Cayman Islands)
Series 2015-2A, Class D, 7.67%, 04/27/27^(c)(l)(o)		1,500,000		1,502,892
Teachers Insurance and Annuity Association of America CLO, Ltd. (Cayman Islands)
Series 2016-1A, Class E2, 11.36%, 07/20/28^(c)(l)(o)		2,500,000		2,580,542
TIAA Churchill Middle Market CLO I (Cayman Islands)
Series 2016-1A, Class E2, 9.36%, 10/20/28^(c)(l)(o)		2,000,000		1,994,890
Series 2017-1A, Class E, 8.73%, 01/24/30^(c)(l)(o)		4,000,000		3,727,932
Voya CLO Ltd. (Cayman Islands)
Series 2015-3A, Series E, 7.86%, 10/20/27^(c)(l)(o)		1,000,000		969,345

24 | See accompanying Notes to Financial Statements.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017


	Principal Amount ($)		Value ($)

Structured Products⁽ⁿ⁾(continued)
Zais CLO Ltd. (Cayman Islands)
Series 2016-2A, Series D, 8.36%, 10/15/28^(c)(l)(o)		1,000,000		1,026,549
Series 2017-2A, Series E, 8.51%, 04/15/30^(c)(l)(o)		1,750,000		1,802,941

Total Structured Products (Cost $33,393,914)				34,437,285


	Share Quantity

Common Stocks - 0.0%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.0%
Medical Card System, Inc.^(e)(g)		914,981		17,525


ENERGY: OIL & GAS - 0.0%
Southcross Holdings Borrower, GP LLC^(e)(g)		129		—
Southcross Holdings Borrower, LP, Class A-II^(e)(g)		129		49,988

				49,988

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%
F & W Media, Inc.^(e)(g)		9,510		—


Total Common Stock (Cost $58,050)				67,513


	Share Quantity		Value ($)

Preferred Stock - 1.6%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.6%

Watford Holdings, Ltd. (Bermuda) 8.50%,^(c)(e)(l)		160,000		3,915,225

Total Preferred Stock (Cost $3,920,000)				3,915,225


Total Investments-153.6% (Cost of $390,347,553)				387,404,715
Other Assets & Liabilities, Net-1.1%				2,848,807
Loan Outstanding-(54.7)%^(p)(q)				(137,988,859	)

Net Assets -100.0%				252,264,663

See accompanying Notes to Financial Statements. | 25

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

December 31, 2017

^(a)

^(b)

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

^(d)	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.

^(e)	Fair Value Level 3 security.

^(f)	The issuer is in default of its payment obligations as of March 19, 2017, as such, income is no longer being accrued.

^(g)	Non-income producing asset.

^(h)	The issuer is in default of its payment obligations as of June 7, 2017, as such, income is no longer being accrued.

⁽ⁱ⁾	Fixed rate asset.

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

^(k)	The issuer is in default of its payment obligations as of December 11, 2017, as such, income is no longer being accrued.

^(l)	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, 2017, these securities amounted to $71,478,489, or 28.33% of net assets.

^(m)	The issuer is in default of its payment obligations as of May 5, 2015, as such, income is no longer being accrued.

⁽ⁿ⁾

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.

^(o)	Floating rate asset. The interest rate shown reflects the rate in effect at December 31, 2017.

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

^(q)	Principal $138,000,000 less unamortized deferred financing costs of $11,141.

26 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Statements of Assets and Liabilities

December 31, 2017


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

Investment securities at fair value (cost $421,180,981 and $390,347,553, respectively)	$	413,774,438		$	387,404,715
Cash and cash equivalents		13,086,655			5,435,285
Interest receivable		2,486,877			2,567,514
Receivable for investment securities sold		24,547,870			29,194,758
Unrealized appreciation on unfunded transactions (Note 9)		20,884			3,805
Prepaid expenses		78,785			78,913


Total assets	$	453,995,509		$	424,684,990


Liabilities:

Borrowings under credit facility (principal $141,000,000 and $138,000,000, respectively, less unamortized deferred financing costs of $298,097 and $11,141, respectively) (Note 8)	$	140,701,903		$	137,988,859
Payable for investment securities purchased		34,406,375			33,774,619
Interest payable		204,245			103,117
Distributions payable to common shareholders		78,909			42,553
Investment advisory fee payable		356,947			331,879
Other payables and accrued expenses		177,252			179,300


Total liabilities		175,925,631			172,420,327


Commitments and Contingencies (Note 9)

Net Assets (Applicable to Common Shareholders)	$	278,069,878		$	252,264,663


Net Assets Consist of:

Paid-in capital ($0.001 par value, 999,998,466 and 1,000,000,000 common shares authorized, respectively, and 15,573,061 and 14,464,026 issued and outstanding, respectively) (Note 6)	$	296,699,291		$	275,624,904
Undistributed net investment income (loss)		168,816			404,678
Accumulated net realized loss from investments		(11,412,570	)		(20,825,886	)
Net unrealized depreciation on investments and unfunded loan commitments		(7,385,659	)		(2,939,033	)


Net Assets (Applicable to Common Shareholders)	$	278,069,878		$	252,264,663


Number of Common Shares Outstanding		15,573,061			14,464,026
Net Asset Value, per Common Share	$	17.86		$	17.44

See accompanying Notes to Financial Statements. | 27

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Statements of Operations

For the Year Ended December 31, 2017


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

Interest	$	26,606,067		$	26,936,649
Dividends		340,000			340,000


Total investment income		26,946,067			27,276,649


Expenses:

Investment advisory fee (Note 3)		4,227,940			3,905,596
Interest and commitment fee expense (Note 8)		3,073,661			3,142,950
Professional fees		327,286			314,757
Administrative services of the Adviser (Note 3)		659,016			652,376
Fund administration and accounting services (Note 3)		266,454			255,170
Insurance expense		311,472			311,472
Amortization of deferred financing costs (Note 8)		219,935			40,310
Board of Directors fees (Note 3)		124,382			124,228
Other operating expenses		163,659			161,951


Total expenses		9,373,805			8,908,810
Expense reimbursement waived by the Adviser (Note 3)		—			—


Net expenses		9,373,805			8,908,810


Net Investment Income		17,572,262			18,367,839


Net Realized and Unrealized Gain/(Loss) on Investments

Net realized gain/(loss) on investments		806,614			(9,078,404	)
Net change in unrealized appreciation/(depreciation) on investments and unfunded loan commitments (Note 9)		(3,572,162	)		13,137,720


Net realized and unrealized gain/(loss) on investments		(2,765,548	)		4,059,316


Net Increase in Net Assets, Applicable to Common Shareholders, Resulting From Operations	$	14,806,714		$	22,427,155

28 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Statements of Changes in Net Assets


	Year Ended December 31, 2017			Year Ended December 31, 2016

Increase/(Decrease) in Net Assets from:

Operations

Net investment income	$	17,572,262		$	19,368,995
Net realized gain/(loss) on investments		806,614			(4,249,370	)
Net change in unrealized appreciation/(depreciation) on investments and unfunded loan commitments		(3,572,162	)		22,141,583


Net increase in net assets from operations		14,806,714			37,261,208


Distributions to Common Shareholders

From net investment income		(18,064,751	)		(19,371,331	)

Total distributions to common shareholders		(18,064,751	)		(19,371,331	)


Total increase/(decrease) in net assets	$	(3,258,037	)	$	17,889,877

Net Assets Applicable to Common Shares

Beginning of year		281,327,915			263,438,038

End of year	$	278,069,878		$	281,327,915


Undistributed net investment income	$	168,816		$	556,680

See accompanying Notes to Financial Statements. | 29

Apollo Tactical Income Fund Inc.

Statements of Changes in Net Assets


	Year Ended December 31, 2017			Year Ended December 31, 2016

Increase in Net Assets from:

Operations

Net investment income	$	18,367,839		$	21,714,036
Net realized loss on investments		(9,078,404	)		(7,130,897	)
Net change in unrealized appreciation on investments and unfunded loan commitments		13,137,720			24,787,359


Net increase in net assets from operations		22,427,155			39,370,498


Distributions to Common Shareholders

From net investment income		(18,586,273	)		(21,941,928	)

Total distributions to common shareholders		(18,586,273	)		(21,941,928	)


Total increase in net assets	$	3,840,882		$	17,428,570

Net Assets Applicable to Common Shares

Beginning of year		248,423,781			230,995,211

End of year	$	252,264,663		$	248,423,781


Undistributed net investment income	$	404,678		$	73,008

30 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Statement of Cash Flows

For Year Ended December 31, 2017


Cash Flows from Operating Activities:

Net increase in net assets from operations	$	14,806,714

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Flows Provided by Operating Activities:
Net realized gain on investments		(806,614	)
Net change in unrealized depreciation on investments and unfunded loan commitments		3,572,162
Net amortization/(accretion) of premium/(discount)		(1,714,261	)
Purchase of investment securities		(425,848,747	)
Proceeds from disposition of investment securities and principal paydowns		421,237,631
Payment-in-kind interest		(667,964	)
Amortization of deferred financing costs		219,935
Changes in Operating Assets and Liabilities:
Decrease in interest receivable		143,257
Increase in prepaid expenses		(109	)
Decrease in interest payable		(149,438	)
Decrease in investment advisory fee payable		(305	)
Decrease in other payables and accrued expenses due to affiliates		(7,466	)
Decrease in other payables and accrued expenses		(75,563	)


Net cash flows provided by operating activities		10,709,232


Cash Flows from Financing Activities:
Distributions paid to common shareholders (net of change in distributions payable to common shareholders)		(18,127,340	)

Net cash flows used in financing activities		(18,127,340	)


Net Decrease in Cash and Cash Equivalents		(7,418,108	)

Cash and cash equivalents, beginning of year		20,504,763


Cash and cash equivalents, end of year	$	13,086,655


Supplemental Disclosure of Cash Flow Information
Cash paid during the year for interest and commitment fee	$	3,223,099

See accompanying Notes to Financial Statements. | 31

Apollo Tactical Income Fund Inc.

Statement of Cash Flows

For the Year Ended December 31, 2017


Cash Flows from Operating Activities:

Net increase in net assets from operations	$	22,427,155

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Flows Provided by Operating Activities:
Net realized loss on investments		9,078,404
Net change in unrealized appreciation on investments and unfunded loan commitments		(13,137,720	)
Net amortization/(accretion) of premium/(discount)		(1,899,746	)
Purchase of investment securities		(428,315,229	)
Proceeds from disposition of investment securities and principal paydowns		424,808,289
Payment-in-kind interest		(185,786	)
Amortization of deferred financing costs		40,310
Changes in Operating Assets and Liabilities:
Decrease in interest receivable		587,215
Decrease in interest payable		(430,177	)
Increase in investment advisory fee payable		5,025
Decrease in other payables and accrued expenses due to affiliates		(19,740	)
Decrease in other payables and accrued expenses		(80,788	)


Net cash flows provided by operating activities		12,877,212


Cash Flows from Financing Activities:
Deferred financing cost		(37,639	)
Distributions paid to common shareholders (net of change in distributions payable to common shareholders)		(18,639,960	)

Net cash flows used in financing activities		(18,677,599	)


Net Decrease in Cash and Cash Equivalents		(5,800,387	)

Cash and cash equivalents, beginning of year		11,235,672


Cash and cash equivalents, end of year	$	5,435,285


Supplemental Disclosure of Cash Flow Information
Cash paid during the year for interest	$	3,573,127

32 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Financial Highlights

For a Common Share Outstanding


Per Common Share Operating Performance:	For the Year Ended December 31, 2017		For the Year Ended December 31, 2016		For the Year Ended December 31, 2015		For the Year Ended December 31, 2014		For the Year Ended December 31, 2013
Net Asset Value, Beginning of Year	$	18.07	$	16.92	$	18.30	$	19.12	$	18.73

Income from Investment Operations:
Net investment income^(a)		1.13		1.24		1.22		1.18		1.34
Net realized and unrealized gain/(loss) on investments and unfunded loan commitments		(0.18)		1.15		(1.37)		(0.75)		0.35
Distributions from net investment income to Series A Preferred Shareholders		—		—		—		(0.02)		(0.04)

Total from investment operations		0.95		2.39		(0.15)		0.41		1.65

Less Distributions Paid to Common Shareholders from:
Net investment income		(1.16)		(1.24)		(1.23)		(1.23)		(1.26)

Total distributions paid to Common Shareholders		(1.16)		(1.24)		(1.23)		(1.23)		(1.26)

Net Asset Value, End of Year	$	17.86	$	18.07	$	16.92	$	18.30	$	19.12
Market Value, End of Year	$	16.22	$	17.40	$	15.15	$	16.63	$	18.10
Total return based on net asset value^(b)		5.80%		15.33%		(0.52)%		2.63%		9.19%
Total return based on market value^(b)		(0.22)%		24.03%		(1.98)%		(1.48)%		3.14%
Ratios to Average Net Assets Applicable to Common Shareholders:
Ratio of total expenses to average net assets		3.33%		3.21%		3.01%		3.07%		3.00%
Ratio of net expenses to average net assets		3.33%		3.21%		3.01%		3.07%		3.00%
Ratio of net investment income to average net assets		6.24%		7.11%		6.71%		6.22%^(c)		7.03%^(c)
Ratio of net investment income to average net assets net of distributions to Series A Preferred Shareholders		—		—		—		6.13%		6.80%
Supplemental Data:
Portfolio turnover rate		102.2%		109.5%		66.1%		80.0%		72.0%
Net assets at end of year (000’s)	$	278,070	$	281,328	$	263,438	$	284,992	$	297,731
Senior Securities:
Total Series A Preferred Shares outstanding		—		—		—		—		1,534
Liquidation and market value per Series A Preferred Shares		—		—		—		—	$	20,000
Asset coverage per share^(d)		—		—		—		—	$	294,078
Principal loan outstanding (in 000’s)	$	141,000	$	141,000	$	149,269	$	149,269	$	122,705
Asset coverage per $1,000 of loan outstanding	$	2,972^(e)	$	2,995^(e)	$	2,765^(e)	$	2,909^(e)	$	3,676^(f)

^(a)	Based on 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)	Net investment income ratio does not reflect payment to preferred shareholders.

^(d)	Calculated by subtracting the Fund’s total liabilities (not including the Series A Preferred Shares and borrowings outstanding) from the Fund’s total assets, and dividing this by the number of Series A Preferred Shares outstanding.

^(e)	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.

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

See accompanying Notes to Financial Statements. | 33

Apollo Tactical Income Fund Inc.

Financial Highlights

For a Common Share Outstanding


	For the			For the			For the			For the			For the
	Year			Year			Year			Year			Period
	Ended			Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,			December 31,
Per Common Share Operating Performance:	2017			2016			2015			2014			2013^(a)
Net Asset Value, Beginning of Period		$	17.18		$	15.97		$	18.21		$	19.51		$	19.10^(b)

Income from Investment Operations:
Net investment income^(c)			1.27			1.50			1.48			1.50			1.03
Net realized and unrealized gain/(loss) on investments and unfunded loan commitments			0.28			1.23			(2.16)			(1.14)			0.39

Total from investment operations			1.55			2.73			(0.68)			0.36			1.42

Less Distributions Paid to Common Shareholders from:
Net investment income			(1.29)			(1.52)			(1.55)			(1.50)			(0.96)
Net realized gain on investments			—			—			(0.01)			(0.16)			(0.01)

Total distributions paid to Common Shareholders			(1.29)			(1.52)			(1.56)			(1.66)			(0.97)

Common share offering charges to paid-in capital			—			—			—			—			(0.04)

Net Asset Value, End of Period		$	17.44		$	17.18		$	15.97		$	18.21		$	19.51
Market Value, End of Year		$	15.75		$	15.43		$	13.89		$	15.96		$	18.00
Total return based on net asset value^(d)			9.87%			19.34%			(2.91)%			2.63%			7.94%^(e)
Total return based on market value^(d)			10.47%			23.24%			(3.65)%			(2.51)%			(4.90)%^(e)
Ratios to Average Net Assets Applicable to Common Shareholders:
Ratio of total expenses to average net assets			3.53%			3.36%			2.97%			2.90%			2.58%^(f)
Ratio of net expenses to average net assets			3.53%			3.36%			2.97%			2.90%			2.55%^(f)
Ratio of net investment income to average net assets			7.27%			9.20%			8.22%			7.63%			6.38%^(f)
Supplemental Data:
Portfolio turnover rate			111.8%			111.6%			67.6%			78.7%			72.4%^(e)
Net assets at end of period (000’s)		$	252,265		$	248,424		$	230,995		$	263,428		$	282,177
Senior Securities:
Principal loan outstanding (in 000’s)		$	138,000		$	138,000		$	138,000		$	138,000		$	138,000
Asset coverage per $1,000 of loan outstanding^(g)		$	2,828		$	2,800		$	2,674		$	2,909		$	3,045

^(a)	From February 25, 2013 (commencement of operations) to December 31, 2013.

^(b)	Net of sales load of $0.90 per share of initial offering.

^(c)	Based on weighted average outstanding shares.

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

^(e)	Not annualized.

^(f)	Annualized.

^(g)	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.

34 | See accompanying Notes to Financial Statements.

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements

December 31, 2017

Note 1. Organization and Operations

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 non-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, LLC (“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”), 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.

As a result of the Funds’ classification as “non-diversified” under the Investment Company Act, each Fund can invest a greater portion of its assets in obligations of a single issuer than a “diversified” fund. Each Fund may therefore be more susceptible than a diversified fund to being adversely affected by any single corporate, economic, political or regulatory occurrence.

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

Annual Report | 35

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2017

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 and preferred stock 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.

36 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2017

The valuation techniques used by the Funds to measure fair value at December 31, 2017 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. Transfers into and out of the levels are recognized at the value at the end of the period. Summaries of the Funds’ investments categorized in the fair value hierarchy as of December 31, 2017 are as follows:


Apollo Senior Floating Rate Fund Inc.
	Total Fair Value at December 31, 2017			Level 1 Quoted Price			Level 2 Significant Observable Inputs			Level 3 Significant Unobservable Inputs

Assets:
Cash and Cash Equivalents		$	13,086,655		$	13,086,655		$	—		$	—
Senior Loans			377,158,658			—			355,503,059			21,655,599
Corporate Notes and Bonds			32,631,580			—			32,622,805			8,775
Common Stock			68,975			—			—			68,975
Preferred Stock			3,915,225			—			—			3,915,225
Unrealized appreciation on Unfunded Loan Commitments			20,884			—			4,498			16,386

Total Assets		$	426,881,977		$	13,086,655		$	388,130,362		$	25,664,960

The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value as of December 31, 2017:


Apollo Senior Floating Rate Fund Inc.
	Total				Senior Loans				Corporate Notes and Bonds				Common Stock			Preferred Stock			Unfunded Loan Commitments

Total Fair Value, beginning of year		$	32,178,376			$	28,275,505			$	—			$	48,375		$	3,854,496		$	—
Purchases, including capitalized PIK			15,335,843				15,295,104				40,739				—			—			—
Sales/Paydowns			(17,162,875	)			(17,155,740	)			(7,135	)			—			—			—
Accretion/(amortization) of discounts/(premiums)			703,485				703,485				—				—			—			—
Net realized gain/(loss)			(829,314	)			(138,546	)			(690,768	)			—			—			—
Change in net unrealized appreciation/(depreciation)			1,413,239				665,971				665,939				20,600			60,729			—
Transfers into Level 3			2,969,988				2,953,602				—				—			—			16,386
Transfers out of Level 3			(8,943,782	)			(8,943,782	)			—				—			—			—

Total Fair Value, end of year		$	25,664,960			$	21,655,599			$	8,775			$	68,975		$	3,915,225		$	16,386

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. There were no transfers between Level 1 and Level 2 fair value measurement during the year shown. The net change in unrealized appreciation/(depreciation) attributable to Level 3 investments still held at December 31, 2017 was $1,378,126.

Annual Report | 37

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2017

The following table provides quantitative measures used to determine the fair values of the Level 3 investments as of December 31, 2017:


Apollo Senior Floating Rate Fund Inc.
Assets	Fair Value at December 31, 2017		Valuation Technique(s)^(a)	Unobservable Input(s)	Range of Unobservable Input(s) Utilized

Senior Loans		$11,328,830	Independent pricing service and/or broker quotes	Vendor and/or broker quotes	N/A

		5,000,000	Discounted Cash Flow^(b)	Discount Rate^(b)	10.02%-12.02%

		4,363,109	Discounted Cash Flow^(b)	Discount Rate^(b)	17.0%

		309,997	Cost^(c)	N/A	N/A

		653,663	Recoverability^(d)	Liquidation Proceeds^(d)	$28.1m

		-	Recoverability^(d)	Liquidation Proceeds^(d)	$0

Bonds		8,775	Discounted Cash Flow^(b)	Discount Rate^(b)	25.0%

		-	Recoverability^(d)	Liquidation Proceeds^(d)	$0

Common Stock		18,987	Black-Scholes Option Pricing Model^(e)	Volatility^(e)	22.6%

		-	Recoverability^(d)	Liquidation Proceeds^(d)	$28.1m

		49,988	Independent pricing service and/or broker quotes	Vendor and/or broker quotes	N/A

Preferred Stock		3,915,225	Discounted Cash Flow^(b)	Discount Rate^(b)	8.69%

Unfunded Loan Commitments		16,386	Independent pricing service	Vendor and/or	N/A
			and/or broker quotes	broker quotes
Total Fair Value		$25,664,960

^(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 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.

^(c)	The Fund utilized a recent funding to fair value this security.

^(d)

The Fund utilized a recoverability approach to fair value this security, 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 inputs used in the valuation model were liquidation proceeds. Significant increases or decreases in the input in isolation may result in a significantly higher or lower fair value measurement.

^(e)	The Fund utilized a Black-Scholes options pricing model to fair value this security. The significant unobservable input used in the valuation model was volatility. Significant increases or decreases in the input in isolation may result in a significantly higher or lower fair value measurement.

38 | Annual Report

Apollo Senior Floating Rate Fund Inc.

Apollo Tactical Income Fund Inc.

Notes to Financial Statements (continued)

December 31, 2017


Apollo Tactical Income Fund Inc.
	Total Fair Value at December 31, 2017		Level 1 Quoted Price		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs
Assets:
Cash and Cash Equivalents		$ 5,435,285		$5,435,285		$ —		$ —
Senior Loans		308,341,390		—		288,595,660		19,745,730
Corporate Notes and Bonds		40,643,302		—		40,602,967		40,335
Structured Products		34,437,285		—		34,437,285		—
Common Stock		67,513		—		—		67,513
Preferred Stock		3,915,225		—		—		3,915,225
Unrealized appreciation on Unfunded Loan Commitments		3,805		—		3,805		—
Total Assets		$392,843,805		$5,435,285		$363,639,717		$23,768,803

The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value as of December 31, 2017:


Apollo Tactical Income Fund Inc.
	Total			Senior Loans			Corporate Notes and Bonds			Structured Products			Common Stock		Preferred Stock			Unfunded Loan Commitments
Total Fair Value, beginning of the year	$	35,486,453		$	30,089,922		$	—		$	1,490,200		$	48,375	$	3,854,496		$	3,460
Purchases, including capitalized PIK		11,950,197			11,762,943			187,254			—			—		—			—
Sales/Paydowns		(18,847,118	)		(16,930,862	)		(32,796	)		(1,880,000	)		—		—			(3,460	)
Accretion/(amortization) of discounts/
(premiums)		694,727			663,869			—			30,858			—		—			—
Net realized gain/(loss)		(5,553,374	)		(1,563,296	)		(3,057,469	)		50,600			—		(986,669	)		3,460
Change in net unrealized appreciation/
(depreciation)		6,424,117			2,109,353			2,943,346			308,342			19,138		1,047,398			(3,460	)
Transfer into Level 3		3,185,030			3,185,030			—			—			—		—			—
Transfers out of Level 3		(9,571,229	)		(9,571,229	)		—			—			—		—			—

Total Fair Value, end of year	$	23,768,803		$	19,745,730		$	40,335		$