State Street and Blackstone Launch New European CLO ETF

State Street Investment Management and Blackstone Credit & Insurance are launching an actively managed European Collateralised Loan Obligation ETF, tapping into the growing European CLO market valued at EUR250 billion. The new fund will invest in floating rate AAA rated tranches of Euro-denominated debt issued by CLOs, giving access to European senior secured corporate loans and bonds. Blackstone will actively manage the securities, while State Street IM will oversee governance and distribution to institutional investors. The ETF is the first credit collaboration between the two firms in Europe, building on their US credit partnership.

State Street Investment Management (State Street IM) and Blackstone Credit & Insurance (Blackstone) have announced the upcoming launch of an actively managed European Collateralised Loan Obligation (CLO) ETF. This initiative aims to tap into the growing European CLO market, which is currently valued at €250 billion and is forecast to see €50 billion in issuance by the end of 2025 Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1].

The new fund will invest in floating rate AAA-rated tranches of Euro-denominated debt issued by CLOs, providing access to European senior secured corporate loans and bonds. Blackstone will act as the sub-investment manager, actively managing the securities, while State Street IM will oversee the governance of the ETF and handle distribution to institutional investors, including asset managers, asset owners, private banks, and wealth managers Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1].

This European CLO ETF is the first credit collaboration between the two firms on the continent, building on their established US credit partnership. Blackstone, the largest global manager of CLOs, set a record for global annual CLO issuance in 2024, while State Street IM has a robust track record in the ETF market Blackstone and State Street to launch European CLO ETF^[2].

Ann Prendergast, Head of EMEA at State Street IM, commented, "Building on more than a decade of partnership with Blackstone, we are excited at the opportunity to provide European investors with diversified exposure to the CLO market. Both State Street IM and Blackstone have brought our deep expertise and global scale to bear in the development of this product. Through an active ETF structure, we will leverage this expertise with a shared goal of generating higher returns from liquid debt tranches, which have exhibited historically high yields and a low duration risk profile" Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1].

Dan Leiter, Global Head of Liquid Credit Strategies and Head of International for Blackstone’s credit and insurance division, added, "We are excited to partner with State Street to broaden access to liquid credit in Europe. As the largest CLO manager globally, we see strong momentum in Europe, which is an area of conviction and growth for Blackstone and our credit business" Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1].

Following regulatory approval, the ETF is expected to be available to institutional investors in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, and the United Kingdom via listings on Deutsche Börse Xetra, Borsa Italiana, and the London Stock Exchange Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1].

References:
Blackstone : State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF^[1] https://www.marketscreener.com/news/blackstone-state-street-investment-management-and-blackstone-credit-insurance-to-launch-new-euro-ce7d59dfdc8cf723
Blackstone and State Street to launch European CLO ETF^[2] https://alternativecreditinvestor.com/2025/09/09/blackstone-and-state-street-to-launch-european-clo-etf/