July 30 (Reuters) - KKR and Capital Group will

launch a fund that will give investors exposure to both private

and public equity, the investment firms said on Wednesday, as

appetite rises for diversification beyond traditional assets.

The fund will be launched in early 2026 in the U.S., pending

approval from regulators. It is structured as an interval fund,

which allows investors to exit only during set windows, and will

have low minimum investment thresholds.

With high-profile companies remaining private for longer,

investment firms are seeking new ways to meet rising demand for

exposure to private markets.

The potential for outsized returns from privately held

companies has drawn interest from retail investors. These assets

are also less sensitive to the economic swings that impact

public markets, making them useful for diversification.

"Private market investments can enhance returns and add

diversification within a portfolio, yet have historically been

out of reach for everyday investors given accreditation

requirements and higher investment minimums," said Holly

Framsted, head of product group at Capital.

The new fund will deepen the partnership between KKR and

Capital, which in April launched two funds focused on a mix of

public and private credit.

These funds have pulled in $100 million in flows in the

first three months, the companies said.