KKR launches hybrid credit fund

KKR and Capital Group plan to launch a public-private credit fund in Asia in the second half of 2026, extending their push to sell hybrid private-market products to a wider pool of investors. (bloomberg.com) Capital Group chief executive Mike Gitlin said the Asia fund follows similar U.S. products introduced in April 2025 that have already pulled in more than $500 million. Those U.S. vehicles combined Capital Group’s public-bond portfolios with KKR’s private-credit sleeve. (bloomberg.com) (capitalgroup.com) The first two funds, Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, were launched on April 29, 2025 as interval funds focused on credit. Capital Group said each fund would target roughly 60% of net assets in public fixed income and 40% in private credit, including direct lending and asset-based finance. (capitalgroup.com) (kkr.com) An interval fund is a structure that holds less-liquid assets but offers periodic buybacks instead of daily exits. Capital Group said these credit funds would make quarterly repurchase offers of up to 10% of outstanding shares at net asset value, above the 5% level common in many interval funds. (capitalgroup.com) The Asia launch lands as private credit managers try to widen distribution beyond pension funds and institutions. KKR and Capital Group have also been building out adjacent products, including an equity-focused public-private fund filed for the U.S. and broader retirement-model offerings announced in late 2025. (capitalgroup.com 1) (capitalgroup.com 2) It also lands after a rough stretch for parts of private credit. Reuters reported on April 1 that KKR FS Income Trust, a non-traded business development company, limited withdrawals after first-quarter repurchase requests reached about 6.3% of outstanding shares, though a sister fund met all requests. (usnews.com) Bloomberg reported in March and April that stress in U.S. private credit had pushed some investors toward Asia and prompted firms in the region to debate longer lockups and different redemption terms. That gives KKR and Capital Group a market where demand is growing but liquidity terms are under closer review. (bloomberg.com 1) (bloomberg.com 2) For KKR, the new fund is less a simple product launch than a test of whether hybrid credit can keep gathering assets even as investors ask harder questions about exits, valuations and borrower quality. (bloomberg.com) (usnews.com)