Inside State Street and Apollo’s Private Market ETF
The asset managers are hoping to offer the first private asset ETF and open up alternative investments to the masses.

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The world’s largest asset managers are attempting to pull off the impossible.
State Street teamed up with Apollo Global Management to file for a new fund last month that neatly packages private assets into an easy-to-trade ETF — the first major step toward opening up alternative assets to retail investors. The actively managed fund holds public and private debt sourced by Apollo, and up to 20% in junk bonds, according to a filing.
It could become a watershed moment for alternative assets, which are expected to top $2.5 trillion by the end of 2028. “If it does get approved, expect a title wave,” said Aniket Ullal, head of ETF research and analytics at CFRA.
Drink Plenty of Liquids
State Street joins firms like Capital Group, Invesco, and BlackRock that are looking to make private assets more accessible to individual investors — the latter’s CFO called it one of the most attractive opportunities in the company’s history. Cerulli Associates estimates just 13% of alternative assets are currently held by retail investors. That means there’s major opportunity:
- Financial advisors own roughly $1.4 trillion in less than fully liquid alternative investment assets in the US alone.
- The retail channel is expected to make up 23% of alternative asset investors in the next three years.
We’re Totally Liquid. Still, it’s a difficult nut to crack. The good ol’ Securities and Exchange Commission imposes a 15% limit on funds holding illiquid investments. According to its filing, Apollo plans to get around the rule by owning the underlying assets and being able to sell or buy back the private debt at any time. “Apollo is wearing multiple hats,” Ullal said. “They’re making the argument that these are no longer illiquid.”
The main issue is whether there’s sufficient protection to ensure investors aren’t getting the short end of the stick. State Street and Apollo could become the only buyers or sellers of the assets in the ETF, especially in a stress scenario, which could mean investors lose out on more competitive pricing, said Bob Elliot, CEO of Unlimited and the former head of Ray Dalio’s investing team at Bridgewater Associates.
“There is certainly the appearance — and opportunity — for everyday investors to be disadvantaged,” he told The Daily Upside. A State Street spokesperson declined to comment, citing a quiet period.
The SEC will have to determine if it is ready to give the green light to a brand new product, much like it did with Bitcoin and Ethereum ETFs earlier in the year. The only difference is that cryptocurrency issuers waited more than a decade for their approvals. “In terms of what needs to be in there, the filing read in a way that suggested this is just the beginning of a conversation,” Elliot said.