American Funds’ parent company Capital Group and private equity firm KKR plan to jointly launch two public-private debt investment products next year. The product is the first in what Capital Group and KKR expect to be a series of hybrid public-private investments, comprised of 60% public and 40% private investments.
In the future, products launched through this partnership will be offered across multiple assets, geographic markets and distribution channels.
The companies declined to provide many details about the public-private investments, citing Securities and Exchange Commission regulations.
The combination of public and private access to alternative assets should provide more liquidity than individual investors could get by putting their money in standalone private credit funds, said Mike Gitlin, president and CEO of Capital Group, which manages more than $2.6 trillion in equity and fixed-income assets worldwide.
KKR offers a wide range of alternative investments, from real estate and infrastructure funds to private equity and private credit funds.
“We believe individuals should have access to alternative investments and are excited to partner with Capital Group, with its world-class investment capabilities, strong client relationships and leading sales and distribution network,” KKR co-CEOs Joe Bay and Scott Nuttall said in a statement.
Eric Mogeloff, partner and head of global client solutions at KKR, added that the public-private hybrid investment model should make alternative investments accessible to more private asset investors.
