KKR and Capital Group Launch Hybrid GMS+ Fund in Europe as KKR Signals Move into Secondary Private Credit Trading

In response to investor concerns regarding illiquidity and a desire for "whole-of-credit" solutions, global investment giants KKR & Co. and Capital Group have launched their first joint public-private credit strategy in Europe and the Asia-Pacific (APAC) region. The launch of the Capital Group KKR Global Multi-Sector+ (GMS+) fund comes at a pivotal moment, as KKR's leadership signals plans to begin actively trading private credit on a secondary desk to inject liquidity into the asset class.

Capital Group KKR Global Multi-Sector+ (GMS+) Fund

Launched on May 27, 2026, the GMS+ fund is a hybrid vehicle designed to give wealthy European and Asian investors seamless access to both public and private credit markets within a single, liquid structure.

The fund's allocation structure is:

• 60% to public credit assets, managed by Capital Group.
• 40% to private credit assets, sub-advised by KKR.

The fund is initially being distributed exclusively through HSBC Private Bank in select markets. To address the liquidity gating fears that have plagued the BDC market in early 2026, the GMS+ fund offers structured monthly repurchases of up to 3% of the fund’s total assets.

As Guy Henriques, president of the Europe and Asia Pacific client group at Capital Group, stated:

"“GMS+ is a whole-of-credit solution designed to sit between traditional bond funds and alternative investments, offering the potential for enhanced returns, lower volatility and greater diversification,” said Guy Henriques, president of the Europe and Asia Pacific client group at Capital Group."

KKR's Pivot to Secondary Private Credit Trading

Simultaneously, KKR is preparing a structural shift that could reshape the entire private credit landscape: the introduction of a secondary trading desk. Private credit has traditionally been an buy-and-hold, highly illiquid asset class. However, as redemption pressures rise and investors seek exit routes, KKR is moving to create a liquid, secondary trading market for existing private loans.

KKR Co-CEO Scott Nuttall indicated that the firm is likely to begin trading private credit soon, leveraging its massive platform which manages $638 billion in assets as of early 2026 and covers more than 250 sponsor relationships.

As reported by Crypto Briefing:

"KKR, one of the world’s largest alternative asset managers, is preparing to add private credit trading to its toolkit. Co-CEO Scott Nuttall indicated the firm is likely to begin trading private credit soon, a move that would expand KKR’s already substantial footprint in the space."

By establishing secondary trading capabilities, KKR aims to attract institutional capital that has historically remained on the sidelines due to lockup periods and mark-to-market valuation concerns. This move represents a major transition toward "Private Credit 2.0," where illiquid debt is transformed into a tradeable asset class.