April 29 (Reuters) - KKR and Capital Group

launched two funds on Tuesday, which would allow retail

investors to invest in both public and private credit.

The funds, Capital Group KKR Core Plus+ and Capital Group

KKR Multi-Sector+, will allocate 60% of their assets to public

fixed income and the rest to private credit.

Private credit - loans typically made by non-bank

institutions - have surged in popularity in recent years as

banks retreat from riskier forms of lending.

Being relatively insulated from the volatility of public

debt markets, private credit can be a crucial source of

diversification for investors.

So far, however, these assets have mostly been limited to

institutional investors.

"We are aiming to unlock the benefits of private investments

for the 95% of individual investors who have not historically

been able to invest in the private markets," KKR co-CEOs Joe Bae

and Scott Nuttall said.

A report from Moody's earlier this year estimated the

private credit market could grow to $3 trillion by 2028.

The new funds will allow investments starting at $1,000,

lower than the typical minimums for such funds, to attract

retail investors.