PCMM ETF democratizes access to middle market loans, which have previously been available primarily to large institutional investors

BondBloxx, an innovative fixed income ETF provider, will launch on Tuesday, December 3^rd the first ETF that offers investors direct exposure to private credit.

Private credit is a fast-growing segment of the U.S. financial markets, representing more than $30 trillion,¹ yet access to this asset class to date has been limited primarily to large institutional and high net worth investors.

The BondBloxx Private Credit CLO ETF (PCMM) provides direct exposure to private credit middle market companies. There are approximately 300,000 middle market companies in the U.S., generating $13 trillion in annual revenue. These businesses are a central driver of U.S. economic growth, representing one-third of U.S. private sector GDP.²

“With the launch of PCMM, investors can now access private credit with an ETF,” said Leland Clemons, Founder and CEO of BondBloxx. “The ETF industry has been a force of continuous innovation for investors, and I am proud that BondBloxx is a leader in that innovation in fixed income. We’re thrilled to bring private credit to ETFs, and we look forward to redefining what is possible in fixed income ETFs.”

PCMM invests at least 80% of its assets in private credit collateralized loan obligations (CLOs). A specific benefit of this ETF will be the ability to own private credit CLOs from any of the major underwriters.

“The portfolio diversification offered by private credit exposure is a key aspect of this new fund, but just as important is the diversified nature of the fund’s holdings themselves. By not limiting the universe of private credit opportunities to a single underwriter, PCMM is better equipped to provide investors with opportunities across the entire U.S. middle market,” added Tony Kelly, Co-Founder of BondBloxx. “Through PCMM, we are now able to offer investors an efficient way to participate in private credit with the liquidity, transparency, and cost advantages of an ETF.”

“This new ETF leverages our expertise in private markets investing to meet the client demand for access to private credit exposures,” said Vivek Bommi, Head of Leveraged Credit at Macquarie Asset Management, which acts as the fund’s sub-adviser. “The launch marks a significant step in expanding access to private credit and reinforces our commitment to delivering compelling outcomes for investors.”

BondBloxx points to several potential use cases for the exposure offered by PCMM, including:

• As a strategic allocation in portfolios to seek enhanced returns and increased diversification
• As a complement to broader credit in fixed income allocations, to include both public and private corporate bonds
• As the liquid portion of private credit and alternatives allocations

“The use cases are many and now, for the first time, all investors have access to private credit as a portfolio building block,” added Clemons. “We’re very pleased to be adding PCMM to our lineup of innovative income-generating solutions.”

Source: BondBloxx

BondBloxx is launching the first-ever private credit CLO ETF tomorrow.

BondBloxx Private Credit CLO ETF $PCMM will be subadvised by Macquarie Asset Management.https://t.co/Pk2oSKOu6b

— Ben Johnson, CFA (@MstarBenJohnson) December 3, 2024