KKR & Co and Capital Group are preparing to roll out a public–private credit fund in Asia later this year, expanding a collaboration aimed at bringing private market strategies to a broader base of wealth management clients, according to a report by Bloomberg.
The new vehicle is expected to launch in the second half of 2026 and builds on similar products introduced by the two firms in the US last year, which have collectively raised more than $500m, according to Capital Group CEO Mike Gitlin. Those US funds typically allocate around 60% to public credit managed by Capital Group and 40% to private credit overseen by KKR.
Speaking in Singapore, Gitlin said the blended structure is designed to improve liquidity, lower costs and increase transparency for investors, describing it as a more gradual way to introduce private markets to retail-focused portfolios. He added that recent volatility and negative headlines around private credit have made investors more cautious, particularly in wealth channels.
A KKR spokesperson confirmed the planned launch of the Asia-focused partnership.
The move comes as private credit continues to attract significant inflows globally, driven by investors seeking higher yields and borrowers diversifying away from traditional bank financing. However, sentiment has softened in parts of the market this year following several high-profile stresses among US-backed borrowers and concerns over exposure to certain sectors, including software. This has contributed to increased redemptions at some private credit funds and prompted wealth managers to address investor concerns about liquidity.
Gitlin said overall credit conditions remain stable, noting that default rates have not shown a meaningful uptick. However, he acknowledged that restrictions on withdrawals have raised concerns among wealth clients, many of whom are seeking more liquid structures.
The KKR–Capital Group initiative follows a broader industry trend, with firms including Blackstone, Vanguard, Wellington Management and Apollo Global Management all developing hybrid public–private strategies aimed at retail investors.
Despite the expansion of such products, Gitlin indicated they are likely to remain a relatively small part of Capital Group’s overall business. The firm, which manages around $3.3tn in assets, expects the strategy to grow, but not to a scale that materially shifts its overall asset base.
