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Capital Group and KKR Expand Partnership to Blend Public and Private Market Access

MarketDash Editorial Team
4 days ago
Capital Group and KKR are building out their strategic alliance with new retirement and wealth products that mix traditional public market investments with private market strategies, targeting 401(k) plans and financial advisers.

Capital Group and KKR & Co. Inc. (KKR) are doubling down on their partnership with plans to develop retirement and wealth products that bridge the divide between public and private markets. The firms announced Wednesday they'll exclusively build two new offerings: target-date funds for defined contribution plans and public-private model portfolios aimed at wealth advisers.

This expansion builds on a collaboration that kicked off in 2025, when the two investment giants started rolling out strategies that blend liquid public markets with less-accessible private investments. The target-date approach is specifically designed for 401(k)-style retirement plans, where participants typically select one age-based fund that automatically adjusts its risk profile as retirement approaches.

Meanwhile, the model portfolios give financial advisers a ready-made package that combines traditional liquid holdings with private market strategies, all wrapped into diversified client portfolios. It's essentially a turnkey solution for advisers who want private market exposure without the complexity of building it from scratch.

Capital Group CEO Mike Gitlin and KKR Co-CEO Scott Nuttall framed the partnership as an effort to democratize access to public and private markets, making these combined strategies more available to everyday investors and their advisers.

What's Already Live and What's Coming

The firms aren't starting from zero here. They've already launched credit-focused hybrid funds, including Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, which blend public and private credit strategies.

Looking ahead, a public-private U.S. equity fund has been filed with regulators and is expected to launch in early 2026, assuming approval comes through. The firms also have a real-asset strategy in the works, targeted for a late 2026 debut.

Moving Into Insurance

The partnership isn't stopping at retail wealth management. The firms said they're extending their collaboration into insurance asset management. Under this arrangement, KKR's insurance unit, Global Atlantic, will tap into Capital Group's fixed-income expertise to help manage portions of its asset portfolio.

KKR shares climbed 2.68% to $125.97 at the time of publication Wednesday.

Back to News

Capital Group and KKR Expand Partnership to Blend Public and Private Market Access

MarketDash Editorial Team
4 days ago
Capital Group and KKR are building out their strategic alliance with new retirement and wealth products that mix traditional public market investments with private market strategies, targeting 401(k) plans and financial advisers.

Capital Group and KKR & Co. Inc. (KKR) are doubling down on their partnership with plans to develop retirement and wealth products that bridge the divide between public and private markets. The firms announced Wednesday they'll exclusively build two new offerings: target-date funds for defined contribution plans and public-private model portfolios aimed at wealth advisers.

This expansion builds on a collaboration that kicked off in 2025, when the two investment giants started rolling out strategies that blend liquid public markets with less-accessible private investments. The target-date approach is specifically designed for 401(k)-style retirement plans, where participants typically select one age-based fund that automatically adjusts its risk profile as retirement approaches.

Meanwhile, the model portfolios give financial advisers a ready-made package that combines traditional liquid holdings with private market strategies, all wrapped into diversified client portfolios. It's essentially a turnkey solution for advisers who want private market exposure without the complexity of building it from scratch.

Capital Group CEO Mike Gitlin and KKR Co-CEO Scott Nuttall framed the partnership as an effort to democratize access to public and private markets, making these combined strategies more available to everyday investors and their advisers.

What's Already Live and What's Coming

The firms aren't starting from zero here. They've already launched credit-focused hybrid funds, including Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, which blend public and private credit strategies.

Looking ahead, a public-private U.S. equity fund has been filed with regulators and is expected to launch in early 2026, assuming approval comes through. The firms also have a real-asset strategy in the works, targeted for a late 2026 debut.

Moving Into Insurance

The partnership isn't stopping at retail wealth management. The firms said they're extending their collaboration into insurance asset management. Under this arrangement, KKR's insurance unit, Global Atlantic, will tap into Capital Group's fixed-income expertise to help manage portions of its asset portfolio.

KKR shares climbed 2.68% to $125.97 at the time of publication Wednesday.