Simpson Thacher Advises Capital Group, KKR on Interval Funds.

Simpson Thacher & Bartlett LLP has advised Capital Group as it teams up with private equity giant KKR to broaden access to private market investments, a space long dominated by institutional investors and the ultra-wealthy.

The partnership kicks off with the launch of two interval funds – Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+, which will focus on credit strategies.

Unlike traditional funds, these new vehicles are designed to blend public and private market assets, aiming to balance risk, return, and liquidity while catering to the evolving needs of financial advisors and investors.

Both funds will, over time and depending on market conditions, target a mix of roughly 60% public fixed income and 40% private credit, including direct lending and asset-based finance.

Notably, each fund will offer quarterly liquidity of up to 10% at net asset value – double what’s typically available in similar alternative investments.

“These solutions demonstrate the power of our combined scale and experience. We believe what Capital Group and KKR can do together is unmatched — blending best-in-class public and private market exposures to deliver diversified and differentiated investment outcomes at a compelling fee. I think of these public-private solutions as the best of both worlds.” said Mike Gitlin, Capital Group’s President and CEO.

For KKR, the move represents a broader effort to open private investments to a much wider range of investors.

“Together with Capital Group, we are aiming to unlock the benefits of private investments for the 95%³ of individual investors who have not historically been able to invest in the private markets. We have only scratched the surface of what we can offer investors as we look to expand our collaboration across additional asset classes, geographies and formats. We entered this partnership knowing that our firms are highly aligned with collaborative cultures and complementary strengths―the launch of these first two funds shows what’s possible when our teams come together.” said Joe Bae and Scott Nuttall, KKR’s Co-CEOs, in a joint statement.

Simpson Thacher team advising Capital Group includes Ryan Brizek, Debbie Sutter, and Andy Madore (Registered Funds), along with Russell Light (Tax).

Capital Group, founded in 1931, is one of the world’s largest and most respected investment management firms. The company provides a wide range of equity, fixed income, and multi-asset investment solutions to individual investors, financial advisors, and institutions globally. Known for its long-term perspective and rigorous research, Capital Group pioneered the Capital System, an investment approach that combines the insights of multiple portfolio managers and analysts to deliver consistent results. Headquartered in Los Angeles, the firm operates offices throughout the Americas, Europe, and Asia.

Simpson Thacher & Bartlett LLP is one of the world’s leading law firms, providing cutting-edge legal advice to a diverse range of clients including corporations, financial institutions, private equity firms, investment funds, and governments. With a global team spanning offices in key financial centers such as New York, London, Hong Kong, and Tokyo, the firm is known for its deep expertise in mergers and acquisitions, banking, capital markets, private funds, real estate, litigation, and regulatory matters. For over 135 years, Simpson Thacher has built a reputation for handling complex, high-profile transactions and delivering innovative solutions that help clients navigate today’s most challenging legal and business issues.

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