Downtown-based investment firm Capital Group has partnered with KKR, an investment firm headquartered in New York, to create a new kind of investment solution combining public and private markets.

Expected to launch in 2025, these solutions – dubbed Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+ – aim to “provide new ways for investors to incorporate private markets into their portfolios … and (make) private markets more accessible to a broader client base,” Capital Group said in a statement.

Holly Framsted, head of global product strategy and development at Capital Group, said this initiative is for the long term and is designed to “serve unmet needs in investor portfolios.”

“These strategies aim to solve the access gap that individual investors currently face when it comes to private investments, and we expect these two public-private strategies will be the first of many across asset classes and geographies,” Framsted said in a statement.

The overall concept of this partnership stems from Capital Group’s vision, though KKR will be key in making this a reality with the firm’s private market expertise. Currently, KKR manages over $100 billion in private credit assets, while Capital Group manages over $555 billion in public fixed income assets.

The private markets sector has grown about 20% per year over the last six years according to McKinsey & Company’s 2024 Global Private Markets Review.

Capital Group said that it’s primarily institutions taking advantage of this growth, while individual investors are missing out.

“Issues ranging from steep eligibility requirements to relatively high investment minimums and complex tax reporting have all hindered access to private markets,” Capital Group said on its website.

This partnership aims to address these roadblocks.