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Wealth managers in Europe, Middle East and Africa are expecting to increase allocations to private equity and private credit over the next three to five years, although they cited liquidity as the most common obstacle.<\/p>\n
State Street Investment Management\u2019s 2025 EMEA Wealth Manager Survey found that 53% of respondents expect to increase allocations to private equity and 42% to private credit over the next three to five years. However, 68% said liquidity was the most common obstacle followed by fees, costs, and minimum order sizes.<\/p>\n
The integration of private assets into portfolios for wealth managers is a matter \u201cof when, not if\u201d according to the report. The survey was conducted between May and July this year with responses from 82 wealth managers across nine countries, who have a total of over $5 trillion in assets under management.<\/p>\n
\u201cThe push toward alternatives grows stronger, and new products are emerging, expanding access to private credit, infrastructure, and other real asset exposures that were once reserved for a select few,\u201d added the survey.<\/p>\n
Ann Prendergast, State Street<\/p>\n Ann Prendergast, head of EMEA at State Street Investment Management, highlighted at a media briefing on 30 September 2025 that ETFs are a really useful way to democratize access to asset classes, particularly for retail intermediary clients. She said: \u201cThey are thinking about how to access private markets in an efficient way.\u201d<\/p>\n In the U.S., State Street Investment Management and alternatives manager Apollo Global Management launched an ETF in February this year, PRIV, which includes exposure to investment-grade private credit, including asset-based finance, alongside investment-grade public credit.<\/p>\n Anna Paglia, State Street Investment Management<\/p>\n Anna Paglia, chief business officer at State Street Investment Management, said in a statement at the time: \u201cWe have worked with Apollo to provide a liquidity solution within PRIV and PRIV continues the mission of democratizing access to private markets.\u201d<\/p>\n Frank Koudelka, global ETF product specialist at State Street Bank, highlighted at the media briefing that the firm is seeing a lot of interest from clients to provide access to private markets though the ETF market.<\/p>\n \u201cHowever, these products need intra-day liquidity and cannot have lock up periods so I think it is going to be an evolution,\u201dhe added. \u201cThe Apollo product is in the market but other clients are taking a wait and see approach.\u201d<\/p>\n J.P. Morgan Asset Management has also recently filed<\/a> with the U.S. Securities and Exchange Commission for its Total Credit ETF that allocates up to 15% of assets to private credit.<\/p>\n Fixed income ETFs<\/strong><\/p>\n State Street Investment Management\u2019s 2025 EMEA Wealth Manager Survey said nearly all, 88%, of wealth managers expect to use ETFs more frequently in client portfolios, with cost efficiency as the top driver of adoption.<\/p>\n Approximately half, 47%, of wealth managers also expect to maintain their current allocation between active and index investments. About four in five wealth managers are already invested in active ETFs and among this crowd, 85%, plan to increase their allocation according to the survey.<\/p>\n Matteo Andreetto, State Street<\/p>\n Matteo Andreetto, State Street Investment Management\u2019s head of intermediary clients coverage for Europe, said at the briefing: \u201cETFs continue to dominate, but active strategies are on the rise. I think an additional acceleration could potentially come from active fixed income products.\u201d<\/p>\n Active fixed income ETFs have attracted record global inflows of $123bn this year, according to State Street. The report highlighted that active ETFs give managers the ability to adjust in real time to rate movements, widening spreads, emerging credit risks or other market events.<\/p>\n \u201cThe result is broader optionality in portfolios, including core and core-plus strategies, targeted satellites like high yield or EM debt, and even newer vehicles such as private credit ETFs,\u201d said the report.<\/p>\n In September 2025 State Street Investment Management and Blackstone Credit & Insurance said in a statement they were launching an actively managed European Collateralised Loan Obligation ETF. This is 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 segments.<\/p>\n The new ETF provides access to floating rate AAA-rated tranches of Euro-denominated debt issued by CLOs. Blackstone actively manages the securities, while 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.<\/p>\n Mark Alberici, State Street<\/p>\n The European CLO market, valued at \u20ac250bn, has grown at an average of 8% in the past five years and is forecast to result in \u20ac50bn of issuance by the end of this year, according to Blackstone, the largest global CLO manager.<\/p>\n Mark Alberici, global head of product innovation and strategic partnership at State Street Investment Management, said in a statement:\u201cWith this launch, we are expanding our liquid credit partnership with Blackstone beyond the US and are excited to bring Blackstone\u2019s 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.\u201d<\/p>\n![\"\"](\"https:\/\/www.marketsmedia.com\/wp-content\/uploads\/2025\/10\/Ann-Prendergast.jpeg\")
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