Global investment firms Capital Group and KKR yesterday launched a set of interval funds aimed at expanding access to private market investment solutions.
The Capital Group KKR Core Plus+ and the Capital Group KKR Multi-Sector+ funds offer a blended fund with public-private markets exposure and a risk, return, and liquidity profile that focuses on investor needs and outcomes, both firms stated in a release following the announcement.
Overtime, each fund pursues to allocate approximately 60% of net assets to public fixed income and 40% to private credit strategies including direct lending and asset-based finance investments.
The Capital Group KKR Core Plus+ will be offered at 84 basis points, while the Capital Group KKR Multi-Sector+ will have a total expense ratio at 89 basis points. Both funds hold a low investment minimum of $1,000 for all share classes
Ultimately, both firms hope to expand access to the funds for investors interested in private markets. Capital Group and KKR say there is work underway to extend access through the implementation of model portfolios and target-date funds (TDFs).
“Expanding access to private markets is much more than two public-private credit solutions. A joint, cross-company project team is already working on public-private equity solutions. We’re discussing how we can bring public-private model portfolio solutions to our clients,” said Capital Group President and CEO, Mike Gitlin. “We believe there is a role for private market solutions in retirement, including target date strategies.
Capital Group and KKR initially announced their strategic partnership in May 2024, aimed at expanding access to alternative investment in investor portfolios.
“Together with Capital Group, we are aiming to unlock the benefits of private investments for the 95% of individual investors who have not historically been able to invest in the private markets. We have only scratched the surface of what we can offer investors as we look to expand our collaboration across additional asset classes, geographies and formats. We entered this partnership knowing that our firms are highly aligned with collaborative cultures and complementary strengths―the launch of these first two funds shows what’s possible when our teams come together,” said Joe Bae and Scott Nuttall, Co-CEOs of KKR.
Capital Group manages more than $2.8 trillion in assets, while KKR manages more than $600 billion across private equity, real assets, insurance and credit.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.