Capital Group and KKR unveil public-private debt funds
Capital Group and KKR have partnered on two new funds open to retail investors that will invest across public and private debt markets.
The two funds – Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, are expected to launch in the US in the first half of 2025, pending regulatory approval.
The funds will be offered through financial professionals to the US wealth market and will also be open to “select institutional investors”, the firms said.
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The new public-private solutions platform aims to capitalise on Capital Group’s public market capabilities, combined with KKR’s extensive private markets expertise.
Capital Group currently manages over $555bn (£427.2bn) in public fixed income assets, while KKR manages over $100bn in private credit assets.
Capital Group will be responsible for the overall strategy but the two firms said they intend to work closely together on the investment portfolios.
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“As a firm, we do not enter a new market unless we are committed for the long term and believe we can offer something meaningful and durable for our clients,” said Holly Framsted, head of global product strategy and development at Capital Group.
“Our focus remains on delivering distinct solutions that serve unmet needs in investor portfolios. These strategies aim to solve the access gap that individual investors currently face when it comes to private investments, and we expect these two public-private strategies will be the first of many across asset classes and geographies.”
Eric Mogelof, partner and head of global client solutions at KKR, added: “KKR and Capital Group share a deep commitment to making private markets assets more accessible to individual investors.
“We are pleased to take this next step in our strategic partnership and look forward to offering additional solutions that bring our best‐in‐class private markets investment capabilities to a broader group of investors.”
Hybrid public-private investment solutions are growing in popularity, as asset managers look to find new ways for investors to incorporate private markets into their portfolios. Last month, it emerged that State Street has partnered with Apollo Global Management to create an exchange traded fund that will invest in both public and private credit, which will be marketed to retail investors.
