Capital Group and KKR Enhance Partnership for Innovative Retirement Solutions and Wealth Management

Expansion of Strategic Partnership between Capital Group and KKR

Introduction

In a significant move within the financial services landscape, Capital Group and KKR have announced the expansion of their strategic partnership, focusing on the development of new, integrated retirement and wealth solutions that will change how investors approach their portfolios. This collaboration is set against a backdrop of the firms' successful previous initiatives in public-private investment strategies launched in 2025.

New Offerings

The new phase of collaboration will focus on two specific product offerings aimed at retirement savers:
1. Target Date Fund Solution: This offering will be tailored for defined contribution plans, featuring a unique construction that integrates both public market strategies managed by Capital Group and private market approaches overseen by KKR. This holistic portfolio aims to provide a diversified investment option that evolves in alignment with changing life stages of investors.
2. Public-Private Model Portfolios: Combining public market strategies from Capital Group with private strategies from KKR, these portfolios are designed to enhance diversification in wealth management, thus appealing to a broader range of investors.

According to Mike Gitlin, President and CEO of Capital Group, and Scott Nuttall, Co-CEO of KKR, the goal is to innovate investment strategies that marry the robust characteristics of public and private markets. They believe that addressing the complexities and confusions investors face when integrating private markets into their portfolios will require a more collaborative approach that neither firm could achieve independently.

Broader Industry Impact

The implications of this partnership extend beyond the products themselves. A shared commitment to educating financial advisors and investors is clearly evident. Both companies aim to provide necessary resources that facilitate a more responsible integration of private market investments into client portfolios. They are committed to enhancing transparency, education, and the creation of innovative products that empower financial advisors and their clients. Matt O'Connor, CEO of Capital Group’s Client Group, emphasized the current demand for comprehensive solutions in wealth management, stating that investors are increasingly looking for greater choices in their investment options.

By expanding their footprint into insurance asset management, the firms will collaborate with Global Atlantic, KKR’s insurance subsidiary. This partnership is expected to leverage Capital Group's expertise in fixed income to manage various insurance assets effectively. As they forge forward, the essential focus remains on enhancing retail financial solutions, particularly those that empower defined contribution plans and IRAs – making private market investments more accessible to those who may not have had such opportunities in the past.

Conclusion

As Capital Group approaches its 100th anniversary in 2031, the long-standing commitment to improving lives through effective investing remains a core principle. With over 9,000 associates and $3.2 trillion in managed assets worldwide, the firm continues to lead the charge in delivering innovative financial solutions that can withstand the test of time. KKR, recognized for its investment acumen and alternative asset management, complements this mission by focusing on fostering growth and delivering high-quality returns across various investment domains.

Investors looking for a strategic edge in wealth management will find the expanded partnership between Capital Group and KKR a promising landscape, aiming to break new ground in the integration of public and private investment strategies. As they collectively navigate the future of retirement solutions, the partnership stands to redefine investment opportunities available to a wider audience.