State Street Global Advisors and Apollo Global Management have launched a private credit ETF, paving the way for the launch of more so-called ‘40 Act funds investing beyond the 15 per cent cap on illiquid holdings.

State Street Global Advisors' much-anticipated private credit exchange-traded fund, developed with alternative investment firm Apollo Global Management, began trading on the New York Stock Exchange on Thursday.

The firm announced its partnership with Apollo and plans for the SPDR SSGA Apollo IG Public & Private Credit ETF last September. The actively managed ETF will hold up to 35% of its portfolio in private securities but will limit holdings in illiquid investments to 15% of total assets, according to the prospectus.