Capital Group and KKR File for First Public-Private Equity Fund
Global investment firms Capital Group and KKR take the next step in their partnership to increase access to private markets with Capital Group’s proposed offering of a new public-private equity interval fund.
Building on the April launch of the firms’ first two public-private credit interval funds, Capital Group today filed a registration statement with the SEC for Capital Group KKR U.S. Equity+, which pending regulatory approval, they anticipate launching in the United States in early 2026. The fund, which will combine public and private market exposures, aims to deliver a comprehensive solution that provides opportunities for growth and diversification and allows investors to seek opportunities across a wider spectrum of companies.
Structured as an interval fund, the strategy is designed to provide access to public and private equity markets through a single, integrated solution with lower minimums, a familiar investment vehicle and no accreditation requirements.
“Private market investments can enhance returns and add diversification within a portfolio yet have historically been out of reach for everyday investors given accreditation requirements and higher investment minimums,” said Holly Framsted, head of product group, Capital Group. “That’s why we’re committed to bringing public and private equity investing together through a single, integrated solution, providing access to the highest conviction investment ideas from Capital Group and KKR.”
“We’re delighted to deepen our partnership with Capital Group by providing access to KKR’s private equity solutions at a time when demand for flexible, high-quality private market exposure has never been greater,” said Eric Mogelof, KKR’s global head of client solutions.
The companies jointly said that Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+ have already attracted more than $100 million in flows within their first three months effective. Financial advisers across more than 100 firms have participated in Capital Group’s customized public-private education programming.
“We have a responsibility to design thoughtful, deliberate solutions that can stand the test of time based on what financial advisers have told us they need. Equally important is helping advisers understand how to integrate these private markets exposures into their clients’ portfolios,” said Matt O’Connor, chief executive officer of Capital Group’s client group.
“We view the public-private market as an opportunity to do this, and the enthusiasm from financial advisers as we define this category is tangible. Beyond flows, advisers have made education a clear priority, for themselves and their clients,” added O’Connor.
According to the firms, work is underway on additional public-private investment strategies, including providing access to KKR’s real assets strategies. Capital Group and KKR are also continuing to explore opportunities to work together on model portfolios, target date funds and other areas where combining capabilities can add value to clients.
“Our cultures are strongly aligned, and our focus on client outcomes is what continues to bind us and drive our joint activities,” said Mike Gitlin, president and CEO of Capital Group, and Scott Nuttall, KKR co-CEO.
Capital Group manages more than $3 trillion in equity and fixed income assets for millions of individuals and institutional investors around the world. KKR manages $638 billion in alternative assets and sponsors investment funds that invest in private equity, credit, and real assets.
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