– Capital Group and KKR launched two new interval funds focused on credit strategies:
📌 Capital Group KKR Core Plus+
📌 Capital Group KKR Multi-Sector+
– Partnership initiated in May 2024 aims to broaden access to private market investment solutions and provide education to individual investors, financial advisors, and institutions.
– Additional strategies in development, including two equity-focused funds targeting diverse client needs and new private market asset classes.
– Key features:
– Target allocation:
📌 60% public fixed income
📌 40% private credit (direct lending and asset-based finance), subject to market conditions.
– Quarterly repurchase offers of up to 10% of outstanding shares at NAV (compared to 5% in most interval funds).
– Low expense ratios:
📌 Core Plus+: 0.84%
📌 Multi-Sector+: 0.89%
📌 Low investment minimum:$1,000 for all share classes.
– Mike Gitlin, President and CEO, Capital Group: “These solutions demonstrate the power of our combined scale and experience. 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.”
– Strategic goals:
📌 Expand private market access to the 95% of individual investors historically excluded.
📌 Collaborate on solutions across asset classes, geographies, and formats.
📌 Develop public-private equity funds, model portfolio strategies, and retirement solutions.
📌 Deepen collaboration with KKR’s insurance business.
– Joe Bae and Scott Nuttall, Co-CEOs of KKR: “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.”
– Advisor and client education initiatives:
📌 Modular digital platform tailored to different levels of advisor experience with private markets.
📌 Content formats include articles, videos, data interactives.
📌 Features insights from portfolio managers and strategists at both firms.
📌 Includes access to Capital Group’s portfolio construction desk.
– Matt O’Connor, CEO of Capital Group’s Client Group: “Our partnership extends beyond products to the power of financial advice.”
– Eric J. Mogelof, Global Head of Client Solutions, KKR: “The opportunity set for public-private solutions is untapped both globally and across asset classes.”
