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Public/Private-Credit ETF PRIV with Liquidity Provider Apollo
This public/private-credit etf PRIV from State Street & Apollo has some unusual twists – it will hold private-credits in 10-35% range and Apollo will act as daily liquidity provider to overcome the SEC limitations on illiquid holdings to 15%. So, basically, Apollo will buy units if there are excessive daily redemptions and State Street can buyback those on demand.
I don't know of ANY similar arrangements in the listed funds (ORFs, ETFs, CEFs). But there has been a similar Liquidity Guarantee for the TIAA Real Estate Account VA (QREARX) since 1995! TIAA charges a fee for this Liquidity Guarantee. TIAA buys QREARX units when there are excessive redemptions and QREARX buys them back later. This feature has been triggered twice, once during the GFC, and recently in 2023. TIAA hasn't lost money on this Guarantee - in addition to collecting fee (included in the ER), it has been able to get out of the units bought at decent profits. It's the magic of deep-pockets.
