State Street Investment Management and Blackstone Credit & Insurance to launch new European CLO ETF

LONDON & NEW YORK - 9 September 2025 - State Street Investment Management ("State Street IM") and Blackstone Credit & Insurance ("Blackstone") today announce the upcoming launch of an actively managed European Collateralised Loan Obligation (CLO) ETF, building on the existing liquid credit partnership between the two firms.

The European CLO market, currently valued at €250 billion, has grown at an average of 8% in the past 5 years and is forecast to result in €50 billion of issuance by year-end 2025. In anticipation of this investment opportunity, 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.

As sub-investment manager of the ETF, Blackstone will actively manage the securities, while, as the ETF sponsor and investment manager, State Street IM is responsible for the governance of the ETF and will also oversee distribution to institutional investors, including asset managers, asset owners, private banks and wealth managers.

The ETF will be the first credit collaboration between the two firms in Europe, building on their US credit partnership which includes two US ETFs sponsored by State Street IM and sub-advised by Blackstone that focus on the loan and high yield spaces. Having been an investor in active CLOs dating back to 2001, Blackstone has extensive experience with active CLO investment and issuance through cycles.

This new initiative brings two leaders in the asset management industry together to strive to deliver a new solution for investors. As a leading provider of ETFs for more than three decades, State Street IM has a long history of delivering innovative products to market including the first US ETF, launched in 1993. Blackstone is the largest global manager of CLOs and leveraged loans.[1] The firm set a record for global annual CLO issuance in 2024, beating its own previous record set in 2021, underlining the firm's status as a leader in this field.

Ann Prendergast, Head of EMEA at State Street Investment Management, commented:"Building on more than a decade of partnership with Blackstone, we are excited at the opportunity to provide European investors 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."

Dan Leiter, Global Head of Liquid Credit Strategies and Head of International for Blackstone Credit & Insurance, adds:"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."

Mark Alberici, Global Head of Product Innovation and Strategic Partnership at State Street Investment Management, comments:"With this launch, we are expanding our liquid credit partnership with Blackstone beyond the US and are excited to bring Blackstone's historical expertise in CLOs to the European market via the UCITS ETF structure, as we continue to democratize investing by helping reduce barriers to entry into this historically hard-to-access area of the market."

Michael Sobol, Global Head of CLO investing for Blackstone Credit & Insurance, adds: "The European credit market offers a robust and attractive set of investing opportunities. This initiative builds on our 25-year presence in the region and our leadership in the CLO market both in Europe and globally with our track record of performance and delivering for investors."

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. More detailed information on the ETF will be available in due course.

[1] Creditflux and 9fin CLO manager AUM rankings as of Q2 2025.

About Blackstone Credit & Insurance
Blackstone Credit & Insurance ("BXCI") is one of the world's leading credit investors. Our investments span the credit markets, including private investment grade, asset-based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit.

About State Street Investment Management
At State Street Investment Management, we have been helping to deliver better outcomes to institutions, financial intermediaries, and investors for nearly half a century. Starting with our early innovations in indexing and ETFs, our rigorous approach continues to be driven by market-tested expertise and a relentless commitment to those we serve. With over $5 trillion in assets managed*, clients in over 60 countries, and a global network of strategic partners, we use our scale to create a comprehensive and cost-effective suite of investment solutions that help investors get wherever they want to go.

*This figure is presented as of June 30, 2025 and includes ETF AUM of $1,689.83 billion USD of which approximately $116.05 billion USD in gold assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Investment Management are affiliated. Please note all AUM is unaudited.

State Street Global Advisors is now State Street Investment Management. Please click here for more information.

Media Contacts:
Blackstone
Felix Lettau
+447587020020
[email protected]

State Street Investment Management
Joseph Cockerline
+447792968506
[email protected]