KKR & Co. (NYSE:KKR) and Capital Group are working on the launch of a public-private credit fund.

The fund, which will be launched in Asia this year, will target both public and private investments as a ‘'more liquid, cheaper, and more transparent" option, Capital Group chief executive officer Mike Gitlin told Bloomberg.

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Gitline added that this fund, which will start fundraising in the second half of this year, is "a calmer way to introduce private markets to wealth management."

This is the second time Capital Group and KKR have joined together to launch a combination fund. 

Last year, the companies raised more than $500 million, which was a mix of 60% public credit assets directed by Capital Group and 40% private credit directed by KKR, Bloomberg stated.

Earlier this year, KKR raised $2.5 billion for its Asia Private Credit strategy. The fund is focused on committing capital to privately originated performing credit investments in the Asia-Pacific.

Despite a challenging fundraising environment, a large number of Asia-Pacific funds are on the road raising capital.

Private equity firm EQT has raised $15.6 billion for its private equity Asia Fund, as investors seek diversification across both asset classes and regions. The fund, which received capital from 75 new investors, had originally sought to raise $12.5 billion when it was launched in 2024.  

Meanwhile, Blackstone raised more than $12 billion for its Asia fund, while Bain Capital added $10.5 billion to its sixth buyout fund.

Approximately 60 Asia-Pacific-focused funds with target sizes greater than $1 billion remain in the market, a report from Bain & Company stated. Together, these funds represent more than 10% of global fundraising targets. That's well above the region’s 5% share of recently closed funds. 

This gap suggests a possible rebound in 2026 while also highlighting intensified competition for capital as limited partners remain selective in allocating to the region. Early commitments to several large funds, however, provide an encouraging signal that fundraising will begin to recover in 2026, the report stated.

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