KKR and Capital Group have launched two new funds targeting investments in a blend of public and private credit, aiming to attract retail investors seeking diversification beyond traditional assets. These public/private credit interval funds represent an effort by the firms to tap into the growing interest in private markets. The move comes amid a broader trend where asset managers, including Morgan Stanley, are expanding access to private equity investments to a wider range of investors, including individuals with relatively modest capital. This shift occurs as private equity faces challenges such as slowing dealmaking and increased regulatory scrutiny. Market volatility is also prompting private-equity firms to pursue continuation fund deals to return cash to investors, although it complicates asset valuation. Meanwhile, credit markets in Europe and the UK show resilience despite global challenges, although risks such as slowing growth and refinancing pressures persist for some middle-market borrowers backed by private credit sponsors.