KKR and Capital Group launch funds targeting blend of private, public credit
April 29 (Reuters) - KKR (KKR.N), opens new tab and Capital Group launched two funds on Tuesday, which would allow retail investors to invest in both public and private credit.
The funds, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, will allocate 60% of their assets to public fixed income and the rest to private credit.
Private credit — loans typically made by non-bank institutions — have surged in popularity in recent years as banks retreat from riskier forms of lending.
Being relatively insulated from the volatility of public debt markets, private credit can be a crucial source of diversification for investors.
So far, however, these assets have mostly been limited to institutional investors.
"We are aiming to unlock the benefits of private investments for the 95% of individual investors who have not historically been able to invest in the private markets," KKR co-CEOs Joe Bae and Scott Nuttall said.
A report from Moody's earlier this year estimated the private credit market could grow to $3 trillion by 2028.
The new funds will allow investments starting at $1,000, lower than the typical minimums for such funds, to attract retail investors.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
28 minutes ago
- Reuters
Denmark picks French, German and Norwegian air defence suppliers
COPENHAGEN, June 10 (Reuters) - Denmark will acquire short-range air defence systems from MBDA France, Germany's Diehl Defence and Kongsberg Gruppen ( opens new tab of Norway, the Nordic country's defence ministry said in a statement on Tuesday. Danish Prime Minister Mette Frederiksen in February ordered the military to go on a buying spree to beef up the country's defences in preparation for potential future Russian aggression in Europe. Denmark will spend over six billion Danish crowns ($919 million) on the artillery acquisition, with the first deliveries expected in 2026, the defence ministry said. Denmark received 10 offers, including from suppliers in Turkey, Israel and Italy, and decided in the end to buy systems from French and German suppliers and to lease one from Norway's Kongsberg, it added. ($1 = 6.5304 Danish crowns)
Reuters
28 minutes ago
- Reuters
China is only 3-6 months behind US in AI, Trump official says
WASHINGTON, June 10 (Reuters) - China is three to six months behind the United States in artificial intelligence, White house AI and crypto czar David Sacks said Tuesday at an event in Washington, warning that excess U.S. AI regulation could damage American innovation in the industry. "China is not years and years behind us in AI. Maybe they're 3-6 months,' said Sacks, speaking at the AWS summit in Washington. "It's a very close race."
Reuters
33 minutes ago
- Reuters
US energy loan office should fund oil, gas, White House aide says
WASHINGTON, June 10 (Reuters) - The U.S. Energy Department's loan office should fund oil and gas infrastructure, a White House aide said on Tuesday. "One of the big problems is, in the past the ... loan program office has been used for a lot of these renewable projects," Jarrod Agen, a deputy assistant to the president and executive director of the National Energy Dominance Council, said at a Politico conference on energy. The Loan Programs Office grew rapidly under former President Joe Biden, thanks to legislation passed during his term, and has hundreds of billions of dollars in loan and loan guarantee capacity. Agen said the administration is changing the priority of the LPO, which is meant to help finance emerging energy projects that show promise but face difficulties getting bank loans. "So, yes, we want to invest more and prioritize projects that are oil and gas-related, nuclear-related," Agen said. President Donald Trump's new energy dominance council has focused on increasing already record-high oil and gas output and cutting climate and pollution regulations on fossil fuels. In his first term, Trump only used the LPO to finance the Vogtle nuclear plant in Georgia. The Trump administration wants to offer tens of billions of dollars in LPO financing over the next two years to projects developing nuclear and geothermal power and minerals used in everything from wind and solar power to weapons systems, according to the White House budget for fiscal 2026. Republicans in the House have pushed to slash LPO's lending.
