#585
Private Assets, Meet ETFs

Published:

Apr 05, 2025


Author:

Sarah Parsons Wolter

Published:

Apr 05, 2025


Author:

Sarah Parsons Wolter


Share:

State Street’s new private credit ETF and BondBloxx’s pending launch are pushing illiquid assets into daily-traded retail vehicles. This type of product promises to open up private credit and equity markets to a wider base of investors, but is also sparking serious concerns across the funds industry. Insiders warn that assets built for long-term commitments — and historically shielded from the daily churn of markets — may not survive the stress of real-time trading without major risks.

Despite the SEC’s cautious sign-off on State Street’s fund and plans from BondBloxx to maintain liquidity buffers and redemption gates, critics remain unconvinced. Morningstar, DBi, and others question how private credit deals, notorious for their complexity and infrequent valuations, can be properly priced and redeemed on demand. If volatility strikes, even a 20% cash buffer or a credit line might not be enough to protect investors from losses or fund managers from fire sales.

Still, the ability to democratize private assets remains highly sought after. Retail investors, shut out of the private markets boom for decades, could finally gain access to strategies once reserved for pensions and endowments. Issuers are betting that the promise of outsized returns will outweigh the structural risks — and that savvy engineering can keep liquidity mismatches in check. Can they?

Portfolio News


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Flutterwave launches Send App in Ghana for seamless remittances - The app simplifies cross-border payments for individuals and businesses, supporting transactions for family needs, school fees, and business operations. This launch aligns with Send App’s mission to enhance secure and seamless international transfers across Africa through advanced technology. Read more

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Private Assets, Meet ETFs


Launches of private asset ETFs raise concerns in funds industry - A flurry of new exchange traded funds is widening retail access to the fast-growing markets for private credit and equity, sparking concerns that these assets are a poor fit for small-scale investors and could prove tough to sell during a crisis. Read more

Industry News


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Select Financings


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Cambrian - New York based AI infrastructure platform for finance raised $5.9m in Seed funding led by a16z Crypto Startup Accelerator (CSX). Read more

Djamo - Ivory Coast based digital banking startup raised $17m in Series B funding led by Janngo Capital. Read more

Felix Pago - Miami based remittance platform raised $75m in Series B funding led by QED Investors. Read more

FurtherAI - San Francisco based AI startup for insurance underwriting and claims raised $5m in new funding led by Nexus Venture Partners. Read more

Fuse - London based cross-border payments startup raised $6.6m in Seed funding led by Northzone. Read more

Incentify - Los Angeles based tax credit startup $9.5m in Series A funding led by Innovent Capital Group. Read more

Kay.ai - New York based AI co-worker platform for insurance brokers raised $3m in Seed funding led by Wing VC. Read more

LightSource - San Francisco based supply chain software platform raised $33m in Series A funding led by Bain Capital Ventures and Lightspeed Venture Partners. Read more

RapidClaims - New York based revenue cycle management startup raised $8m in Series A funding led by Accel. Read more

Roam - New York based assumable mortgage startup raised $11.5m in Series A funding led by Khosla Ventures. Read more

Scapia - Bangalore based travel credit card startup raised $40m in Series B funding led by Peak XV Partners. Read more

Sohar Health - New York based AI platform for insurance eligibility verification raised $3.8m in Seed funding led by Kindred Capital. Read more

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Thatch - San Francisco based health benefits platform enabling ICHRA adoption raised $40m in Series B funding led by Index Ventures. Read more

Venteur - San Francisco based health benefits startup raised $20m in Series A funding led by Informed Ventures and American Family Ventures. Read more

Vivere Partners - California based specialty insurance platform raised $7.5m in Series A funding led by General Catalyst. Read more

WeeFin - Paris based ESG data management platform for financial institutions raised €25m in Series B funding led by BlackFin Capital Partners. Read more


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