Article: Data Transparency, Liquidity Among the Chief Concerns with Private Credit ETFs

Private credit exchange-traded funds (ETFs) have emerged as a cutting-edge option for retail investors aiming to broaden and diversify their portfolios. In a recent interview with Hedge Fund Alpha, Allvue’s Nate Eisenberg, Private Credit Product Manager, weighed in on the emergence of private credit ETFs and their market potential. said he thinks one reason the ETF launched without having everything in order with regulators could have been anticipation of the new administration — “one that’s very friendly toward financial innovation and has a lighter touch when it comes to launches and more esoteric vehicles like private credit ETFs.”

Eisenberg noted that issuers are rushing to launch their own private credit ETFs, driven by anticipated shifts in supply and demand dynamics. “On the demand side, broadly, the market for private credit has been growing at a15% compound annual growth rate over the last 10 yrs,” he pointed out. “It’s the second-largest growing asset class behind infrastructure. With this increasing demand, new entrants like insurance companies have jumped in with both feet into private credit”.

Read the full article prepared by Hedge Fund Alpha to gain deeper insights into the transformative potential of private credit ETFs and the evolving dynamics of this exciting asset class.