Miranda L. Sturgis

NEW YORK — Stradley Ronon served as fund and board counsel in connection with the launch of two new interval funds that will provide new ways for investors to incorporate private markets into their portfolios. Formed through a strategic partnership between global investment firms Capital Group and KKR, the funds will offer investors a hybrid strategy that provides exposure to a mix of public and private credit across multiple asset classes, geographies and channels.

“With the market momentum in the alternative asset space, we are proud to be involved at the forefront of this new product launch and collaborate with these leading asset management firms on this exciting debut,” said Nicole Simon, partner and chair of the alternative funds practice, who co-led the team representing the funds and their boards with partner Michael O’Hare. The team also included partner Miranda Sturgis and associate Jeremy Gottlieb.

Capital Group KKR Core Plus+ will invest in publicly traded fixed-income securities and private credit loans and securities, including private corporate direct lending and asset-based finance investments, allocating about 60% to public debt (managed by Capital Group) and 40% to private credit (managed by KKR). 

Capital Group KKR Multi Sector+ will also invest in publicly traded fixed-income securities and private credit loans and securities with a targeted 60-40 mix but in different segments. The public portion (managed by Capital Group) will focus on high-yield corporate debt (25%), investment-grade corporate debt (10%) and securitized debt (25%). As with the core fund, KKR’s private sleeve will focus on corporate direct lending and asset-based finance.

About Stradley Ronon’s Interval & Tender Offer Funds Practice:
Serving as fund, sponsor and/or board counsel to more than 15% of currently active interval and tender offer funds, we are well-versed in the creation and operation of these funds and add valuable perspective with respect to initial product development and structuring decisions, formation and registration, corporate actions such as reorganizations, regulatory filings, exemptive relief enabling funds to co-invest alongside affiliates as well as exemptive relief allowing for multi-class and distribution fee structures, and ongoing compliance and regulatory issues. We also provide trusted counsel to the boards of directors/trustees that oversee these types of funds.

About Stradley Ronon Stevens & Young,  LLP
Counseling clients since 1926, Stradley Ronon has helped private and public companies — from small businesses to Fortune 500 corporations — achieve their goals by providing pragmatic, value-driven legal counsel. With offices coast to coast, our lawyers seamlessly address the full spectrum of our clients’ needs, ranging from sophisticated corporate transactions to complex commercial litigation.