Key Takeaways
- • HSBC is rolling out Capital Group-KKR public-private investment funds across Asia, with a planned launch target sometime in 2026, expanding the partnership's reach beyond North America.
- • Capital Group and KKR have launched two initial public-private credit interval funds—Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+—following their May 2024 strategic partnership announcement.
- • The partnership extends into equity markets with the launch of Capital Group KKR U.S. Equity+, an interval fund blending public and private equity strategies for retail and institutional investors.
- • The funds target the approximately 95% of Americans historically excluded from private markets investments, offering attractive features including low investment thresholds, compelling fee structures, and favorable liquidity terms.
- • Capital Group, the world's largest active investment manager with $2.8 trillion in assets under management, is leveraging KKR's private markets expertise to democratize access to institutional-quality investment opportunities.
Summary
HSBC is preparing to distribute Capital Group-KKR public-private investment funds to clients across Asia as part of a broader expansion of the strategic partnership between Capital Group and KKR. According to Lavanya Chari of HSBC, the bank is "working on the launch for clients here in Asia sometime this year," signaling the firms' commitment to broadening geographic access to these integrated investment vehicles.
Capital Group and KKR announced their strategic partnership in May 2024 with an explicit mandate to expand private markets access to retail and institutional investors. The partnership has already progressed through multiple product launches. The firms introduced two public-private credit interval funds—Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+—which focus on fixed income strategies. The partnership subsequently extended into equity markets with the launch of Capital Group KKR U.S. Equity+, designed to combine public and private equity exposures within a single interval fund structure.
The strategic rationale centers on addressing a significant market opportunity: approximately 95% of Americans have historically lacked access to private markets investments and their diversification benefits. The newly launched funds offer structural advantages designed to attract individual and institutional investors, including low minimum investment thresholds, competitive fee structures, and liquid redemption terms—features typically unavailable in traditional private markets vehicles.
Capital Group brings substantial scale to the partnership, operating as the world's largest active investment manager with $2.8 trillion in assets under management as of December 31, 2024. KKR contributes decades of institutional private markets expertise across equity, credit, and alternative strategies. The funds allow investors to access KKR strategies and co-investment opportunities generally reserved for institutional capital, democratizing what has traditionally been an exclusive asset class.
The Asia expansion through HSBC represents a logical extension of the partnership's initial North American focus, positioning both firms to capture institutional and high-net-worth demand for public-private blended strategies in one of the world's fastest-growing wealth management regions.
Capital Group and KKR announced their strategic partnership in May 2024 with an explicit mandate to expand private markets access to retail and institutional investors. The partnership has already progressed through multiple product launches. The firms introduced two public-private credit interval funds—Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+—which focus on fixed income strategies. The partnership subsequently extended into equity markets with the launch of Capital Group KKR U.S. Equity+, designed to combine public and private equity exposures within a single interval fund structure.
The strategic rationale centers on addressing a significant market opportunity: approximately 95% of Americans have historically lacked access to private markets investments and their diversification benefits. The newly launched funds offer structural advantages designed to attract individual and institutional investors, including low minimum investment thresholds, competitive fee structures, and liquid redemption terms—features typically unavailable in traditional private markets vehicles.
Capital Group brings substantial scale to the partnership, operating as the world's largest active investment manager with $2.8 trillion in assets under management as of December 31, 2024. KKR contributes decades of institutional private markets expertise across equity, credit, and alternative strategies. The funds allow investors to access KKR strategies and co-investment opportunities generally reserved for institutional capital, democratizing what has traditionally been an exclusive asset class.
The Asia expansion through HSBC represents a logical extension of the partnership's initial North American focus, positioning both firms to capture institutional and high-net-worth demand for public-private blended strategies in one of the world's fastest-growing wealth management regions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.