Capital Group and KKR are combining forces to offer hybrid public-private investment funds to wealthy individuals, in a move that seeks to open up the fast growing alternative sector to a much wider range of investors.
The partnership links Los Angeles-based Capital, the world’s largest active asset manager with $2.6tn in equity and bond funds and a strong distribution network, with KKR, one of the best known private credit providers. Their first products, blended public and private credit funds, will launch next year.
The two firms say this is the start of a broader platform that will make alternatives — private equity, credit, infrastructure and real estate funds that have previously been sold almost exclusively to institutions and the super wealthy — available to a broader range of investors.