Capital Group, KKR expand public-private fund to Europe

Binaya Dahal

Journalist

29 May 2026

Capital Group and private equity player KKR have expanded their partnership to offer a new public-private investment funds that gives affluent European and Asian investors access to private credit assets, while maintaining the liquidity advantages of public bond markets.

Los Angeles-based Capital Group, the world’s largest active asset manager, and private credit giant KKR, have previously collaborated on two public-private credit strategies and one public-private equity strategy in the US, but Thursday’s announcement marks the first time the suite will be available in Europe and the Asia Pacific.

The two firms say the fund will allocate around 60% to public credit assets managed by Capital Group, while the rest will be invested in private credit assets overseen by the buyout giant. It will be available initially through HSBC Private Bank in select markets.

Capital Group’s president for Europe and Asia Pacific Guy Henriques said the suite is a whole-of-credit solution that sits between traditional bond funds and alternative investments, “offering the potential for enhanced returns, lower volatility and greater diversification.”

“When we announced a strategic partnership with KKR two years ago we said it marked the start of our long-term collaboration. Today, we’re extending that commitment by bringing our first public-private strategy to investors in Europe and Asia Pacific,” he said.  

Furthermore, the strategy will offer opportunities for monthly repurchases of up to 3% of the Fund, delivering liquidity above the level typically available in private credit funds.

KKR’s partner and head of global client solutions Eric Mogelof said having a single access point to invest at scale across public and private markets with world-class managers is a compelling value proposition.

“Through our strategic partnership with Capital Group, we are demonstrating the power of delivering a holistic solution that combines our firms’ near 150 years of investment leadership, deep expertise in credit investing, a shared commitment to education and client service,” Mogelof said.

HSBC’s head of wealth and premier solutions Lavanya Charis said professional investors are looking for more comprehensive ways to diversify portfolios and pursue differentiated outcomes.

“Our collaboration with Capital Group and KKR reflects HSBC’s commitment to connecting clients with innovative solutions that bring together leading public and private market capabilities within a single, integrated investment approach – enhancing diversification and complementing clients’ existing portfolio allocations,” Charis said.