Capital Group and KKR Advance Public-Private Investment Solutions for Individual Investors
- Leading global investment firms file for two public-private fixed income interval funds to launch in the U.S. in the first half of 2025, pending regulatory approval
- New category of public-private solutions to expand over time across multiple asset classes and geographies
LOS ANGELES, Oct. 29, 2024 /PRNewswire/ -- Leading global investment firms Capital Group and KKR today filed registration statements with the SEC for two public-private fixed income funds, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, both of which are expected to launch in the U.S. in the first half of 2025, pending regulatory approval. Today's filings follow the initial announcement of the firms' exclusive strategic partnership to create a new category of hybrid public-private investment solutions that will provide new ways for investors to incorporate private markets into their portfolios.
The two new strategies are expected to be offered through financial professionals to the U.S. wealth market. Select institutional investors may find the strategies relevant in their portfolios as well. The filings underscore the firms' commitment to making private markets more accessible to a broader client base.
"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."
While Capital Group is responsible for the overall strategy, the two organizations intend to work closely together to deliver investment portfolios that thoughtfully combine public and private investments, with an aim toward solving distinct investor needs.
"KKR and Capital Group share a deep commitment to making private markets assets more accessible to individual investors," said Eric Mogelof, Partner and Head of Global Client Solutions at KKR. "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."
The new public-private solutions platform seeks to deliver Capital Group's public market capabilities combined with KKR's extensive private markets expertise. Today, Capital Group manages over $555B in public fixed income assets, while KKR manages over $100B in private credit assets.
About Capital Group
Capital Group, home of American Funds, has been singularly focused on delivering superior results for long-term investors using high-conviction portfolios, rigorous research and individual accountability since 1931.
As of September 30, 2024, Capital Group manages more than $2.8 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.
For more information, visit capitalgroup.com.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR's website at https://kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at https://www.globalatlantic.com/
Registration statements for each of Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+ have been filed with the Securities and Exchange Commission and are available from the EDGAR database on the SEC's website (www.sec.gov). The information in the registration statements is not complete and may be changed. The securities of neither fund may be sold until its registration statement is effective. An investor should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information about each fund will be contained in the fund's final prospectus, which investors should read carefully when available from the EDGAR database on the SEC's website (www.sec.gov). This communication is not an offer to sell the shares of either fund and is not soliciting an offer to buy the shares of either fund in any state where the offer or sale is not permitted.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All company and product names mentioned are the property of their respective companies.
Capital Client Group, Inc.
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SOURCE Capital Group Companies