Capital Group files for public-private equity fund with KKR

Published 30/07/2025, 12:36
Capital Group files for public-private equity fund with KKR

LOS ANGELES/NEW YORK - Capital Group filed a registration statement with the SEC on Wednesday for a new public-private equity interval fund in partnership with KKR (NYSE:KKR), expanding access to private markets for everyday investors. According to InvestingPro data, KKR has established itself as a prominent player in the Capital Markets industry, managing assets worth over $134 billion in market capitalization.

The proposed fund, Capital Group KKR U.S. Equity+, is expected to launch in early 2026, pending regulatory approval. It will combine public and private equity investments in a single vehicle that requires no investor accreditation and offers lower minimum investments than traditional private equity funds.

This filing follows the April launch of the partnership’s first two public-private credit interval funds, which have attracted over $100 million in flows within their first three months, according to the press release statement.

"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 at Capital Group.

The new fund will be structured as an interval fund, a type of closed-end fund that periodically offers to repurchase a limited percentage of its shares from shareholders, providing some liquidity for an otherwise illiquid asset class.

Financial advisors from more than 100 firms have participated in Capital Group’s education programming on public-private investments, highlighting growing interest in this category.

The companies indicated they are working on additional public-private investment strategies, including access to KKR’s real assets, and exploring opportunities in model portfolios and target date funds.

As of June 30, 2025, Capital Group manages more than $3.0 trillion in equity and fixed income assets. KKR (NYSE:KKR) is a global investment firm offering alternative asset management, capital markets and insurance solutions. Trading at a P/E ratio of 61.1, KKR has demonstrated strong momentum with a 26.5% return over the past year. Discover comprehensive analysis and Fair Value estimates for KKR and 1,400+ other stocks through InvestingPro’s detailed research reports.

In other recent news, KKR announced the successful completion of a $6.5 billion fundraise for its asset-based finance strategy. This includes $5.6 billion in KKR Asset-Based Finance Partners II and nearly $1 billion from separately managed accounts. Additionally, KKR has committed A$500 million to CleanPeak Energy, an Australian renewable energy firm, to expand its distributed energy platform. The investment, part of KKR’s Global Climate Transition strategy, is expected to close in the second half of 2025.

Moreover, KKR and T-Mobile have completed their acquisition of Metronet, forming a joint venture to enhance fiber deployment across underserved U.S. markets. KKR has also agreed to acquire a significant minority stake in the travel technology company Etraveli Group, though financial details were not disclosed. In another strategic move, KKR has invested in the e-commerce platform SupplyHouse to support its growth in the HVAC, plumbing, and electrical products sector. These developments highlight KKR’s ongoing investment activities across various sectors.

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