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Investment giants including Apollo Global Management, BlackRock, Capital Group, KKR and State Street are jostling to launch private-credit exchange-traded funds and other retail products. The funds would allow anyone to buy into the $1.7t market for loans made by Wall Street’s nonbanks to corporations and consumers.
“There is a mismatch in terms of the liquidity profile between private credit as an underlying asset and the daily redemption of an ETF,” said Aaron Filbeck, a managing director at the Chartered Alternative Investment Analyst Association, a professional group for money managers. “There is a question as to how exactly that is going to work.”
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