Apollo’s Race Toward Private-Credit ETFs to Face SEC Scrutiny
- SEC reviewing Apollo, State Street plans for new breed of ETF
- Regulator likely to look into potential conflicts of interest
Gary Gensler, chairman of the US Securities and Exchange Commission.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
As money managers push to bring private credit to public markets, investors in a new breed of exchange-traded fund will want to know how they can get out when markets are stressed. Their early plans aren’t resolving doubts.
The Securities and Exchange Commission is set to review three recent filings for private-credit ETFs, including a proposed partnership between Apollo Global Management Inc. and State Street Corp. Securities law experts say the lack of information on how retail investors can easily withdraw money from funds loaded with illiquid assets will likely prompt scrutiny, while consumer advocates are already drawing comparisons to securities that imploded.