KKR and Capital Group have joined forces to launch a new range of funds designed to broaden retail access to private markets, with the first two credit strategies set to launch this week.

The partnership, a year in the making, will offer individual investors hybrid products combining public equities, bonds, and private assets such as loans, corporate buyouts, infrastructure, and property deals. The first offerings—a Core Plus+ fund and a Multi-Sector+ fund—carry minimum investments of just $1,000, positioning them for a broader audience of high-net-worth individuals and mass-affluent investors.

The initiative reflects a growing trend of traditional asset managers and private capital firms collaborating to expand retail exposure to private markets. It follows similar moves by Blackstone, which recently teamed up with Vanguard and Wellington Management.

“For a lot of folks who have never used alternatives before, this public-private hybrid space is a really elegant entry into private assets,” said Mike Gitlin, CEO of Capital Group.

Scott Nuttall, co-CEO of KKR, added that the new strategies are designed to make private assets “easier to buy and easier to own” for individual investors.

The two initial funds will allocate 40% to private assets, with the remainder invested in publicly traded debt. Investors will be able to redeem up to 10% of their shares quarterly—double the typical allowance for comparable interval funds. Management fees are set at 0.84% for the Core Plus+ fund and 0.89% for the Multi-Sector+ fund, significantly lower than the industry average for private funds.

Longer-term, KKR and Capital Group aim to launch additional hybrid funds across real estate and infrastructure, and to expand beyond the US, with the goal of building a platform managing more than $100bn.

Capital Group and KKR briefly discussed a potential merger during initial talks but ultimately decided that a partnership offered greater strategic benefits while preserving their independent business models.

Source: Financial Times