Capital Group and KKR have launched their first two interval funds focused on credit strategies, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, marking a significant milestone in their strategic partnership announced in May 2024. The firms are already developing additional equity-focused strategies expected in 2026 as they work to democratize access to private market investments for individual investors, according to a joint announcement.
The new interval funds combine public and private credit exposures in a single solution, with each fund aiming to allocate approximately 60% to public fixed income and 40% to private credit. Notable features include improved liquidity with quarterly repurchase offers up to 10% of outstanding shares (compared to the industry standard of 5%), competitive expense ratios of 84-89 basis points, and low investment minimums of $1,000 for all share classes.
“These solutions demonstrate the power of our combined scale and experience,” said Capital Group President and CEO, Mike Gitlin. “We believe what Capital Group and KKR can do together is unmatched — blending best-in-class public and private market exposures to deliver diversified and differentiated investment outcomes at a compelling fee.”
The partnership aims to serve the estimated 95% of individual investors who have historically lacked access to private markets. Both firms have created educational resources for financial advisors, including digital learning modules, portfolio construction tools, and access to investment specialists across both organizations.
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.
Read the full announcement at PRNewswire.
