Capital Group and KKR have expanded their global partnership by launching their first public-private investment strategy for eligible investors in Europe and Asia-Pacific.

Called the Capital Group KKR Global Multi-Sector+ ( GMS+ ), the fund blends public and private markets exposure to deliver a holistic multi-sector credit solution within a single fund structure.

The launch of GMS+ comes as investors and wealth advisers recognize the importance of investing across public and private markets to access the full range of market opportunities, with the potential to achieve greater diversification and differentiated performance.

The fund will allocate approximately 60% to public credit assets managed by Capital Group and 40% to private credit assets managed by KKR. It will initially be available through HSBC Private Bank in select markets.

GMS+, managed by Capital Group and sub-advised by KKR, seeks to provide a high level of current income by investing across multiple sectors in both publicly traded fixed income securities and private credit securities.

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

Guy Henriques, president, Europe and Asia-Pacific client group, at Capital Group, says: “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. GMS+ is a whole-of-credit solution designed to sit between traditional bond funds and alternative investments, offering the potential for enhanced returns, lower volatility, and greater diversification.”

Eric Mogelof, partner and head of global client solutions at KKR, adds: “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’ nearly 150 years of investment leadership, deep expertise in credit investing, and a shared commitment to education and client service.”

To date, Capital Group and KKR have launched two public-private credit strategies and one public-private equity strategy in the United States.