Capital Group, KKR launch public-private fund

Capital Group and KKR have launched a new fund Capital Group KKR Global Multi-Sector+ (GMS+) together for investors in Europe and the Asia-Pacific, which will blend public and private exposure delivering multi-sector credit investments in a single fund structure.

The fund will seek to allocate approximately 60% to public credit assets managed by Capital Group and 40% to private credit assets managed by KKR. It will offer opportunities for monthly repurchases of up to 3% of the fund.

KKR partner and head of global client solutions Eric Mogelof said: "Having a single access point to invest at scale across public and private markets with world-class managers is a compelling value proposition."

Capital Group president of Europe and Asia Pacific client group Guy Henriques said GMS+ is designed to sit between traditional bond funds and alternative investments, offering the potential for enhanced returns, lower volatility and greater diversification.

KKR and Capital Group formed an exclusive strategic alliance in 2024 to democratise hybrid public-private market investment solutions across multiple asset classes, geographies, and channels.

Last year, they launched their first two public-private investment products, interval funds focused on credit strategies.

"When we announced a strategic partnership with KKR two years ago we said it marked the start of our long-term collaboration. Today, we're extending that commitment by bringing our first public-private strategy to investors in Europe and Asia Pacific," Henriques said.

"Through our strategic partnership with Capital Group, we are demonstrating the power of delivering a holistic solution that combines our firms' near 150 years of investment leadership, deep expertise in credit investing, a shared commitment to education and client service," Mogelof added.

To date, Capital Group and KKR have launched two public-private credit strategies and one public-private equity strategy in the US.