Investment firms Capital Group and KKR filed registration statements with the SEC for two public-private fixed income funds, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+ (which are expected to launch in the U.S. in the first half of 2025, pending regulatory approval).
The filings follow the announcement of the firms’ partnership to create a category of public-private investment solutions that will provide ways for investors to incorporate private markets into investment portfolios.
The strategies are expected to be offered via financial professionals to the U.S. wealth market.
As noted in the announcement, 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.
While Capital Group is responsible for the overall strategy, the two organizations intend to work together to deliver investment portfolios that combine public and private investments, with an aim “toward solving distinct investor needs.”
The public-private solutions platform seeks to deliver Capital Group’s public market capabilities combined with KKR’s private markets expertise.
Capital Group reportedly manages $555B+ in public fixed income assets, while KKR manages $100B+ in private credit assets.
Capital Group, home of American Funds, has been focused on delivering results for investors using portfolios, research and individual accountability.
As of Sept 30, Capital Group manages $2.8 trillion in equity and fixed income assets for investors.
Capital Group manages equity assets via 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.”
KKR is an investment firm that offers alternative asset management as well as capital markets / insurance solutions.
KKR says that it aims to generate investment returns by following a disciplined investment approach, employing experienced professionals, as well as supporting growth in its portfolio firms and communities.
KKR supports investment funds that aim to invest strategically in private equity, credit and real assets and has partners that manage hedge funds.
KKR’s insurance subsidiaries reportedly provide retirement, life and reinsurance products under the management of Global Atlantic Financial Group.
