Capital Group and KKR have filed for regulatory approval to launch a new interval fund aimed at retail investors, blending listed US equities with private equity exposure in a structure designed to broaden access to alternative assets, according to a report by Bloomberg.
According to an SEC filing on Tuesday, the proposed Capital Group KKR US Equity+ fund will allocate up to 40% of assets to private equity, primarily through KKR-managed vehicles.
Roughly 30% is earmarked for K-PEC, KKR’s flagship private equity fund tailored to affluent retail investors, with an additional 10% potentially directed to co-investments alongside other KKR strategies. The balance of the portfolio – approximately 60% – will be invested in mid- and large-cap US equities.
Capital Group, which manages over $3tn in assets across active equity and fixed income strategies, plans to distribute the fund via financial advisers and independent broker-dealer platforms, with a minimum investment threshold of $1,000 for most share classes. Notably, the fund will be open to non-accredited investors, a rare feature for vehicles with private market exposure.
Structured as an interval fund, the product will offer quarterly redemptions of up to 5% of outstanding shares. Capital Group has stated that it will not employ leverage to enhance returns and intends to benchmark performance against the S&P 500. Fee details have not yet been disclosed.
The filing follows the successful launch earlier this year of two hybrid public-private bond and credit funds from the same partnership, which have reportedly raised $100m in their first quarter. Long-term, both firms are exploring wider distribution opportunities, including access through defined contribution plans such as 401(k)s, a channel with more than $12tn in assets.
Capital Group is also evaluating the inclusion of the private equity product in model portfolios and is considering future strategies focused on private infrastructure and real estate, leveraging KKR’s investment capabilities across asset classes.
The initiative comes amid a broader push by alternative managers to tap the retail channel as institutional allocations to private markets plateau. Competitors including Blackstone, Apollo, and BlackRock have all launched or expanded product lines targeting individual investors, often through interval or tender-offer fund structures.
While many private equity firms continue to face headwinds around exit activity and capital return cycles, KKR maintains it is well-positioned.
