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    Can KKR (KKR)–Capital Group’s Retirement Tie-Up Redefine Its Role in Everyday Portfolios?

    Simply Wall St·12/08/2025 00:22:27
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    • Capital Group and KKR recently expanded their partnership to create integrated retirement and wealth solutions that blend Capital Group’s public market strategies with KKR’s private market capabilities, including new target date funds and public-private model portfolios for defined contribution and wealth clients.
    • The move is important because it aims to bring private market exposure into mainstream retirement and wealth offerings at scale, potentially reshaping how everyday savers access alternatives and how advisors build diversified portfolios.
    • We’ll now explore how this expanded Capital Group partnership, especially the new public-private retirement solutions, could influence KKR’s broader investment narrative.

    Find companies with promising cash flow potential yet trading below their fair value.

    KKR Investment Narrative Recap

    To own KKR, you need to believe in the long term shift toward private markets and in KKR’s ability to keep growing fee based assets despite competition and earnings volatility. The expanded Capital Group partnership fits this story by targeting retirement and wealth channels, but it does not materially change the near term reliance on fundraising momentum as a key catalyst or the risk that performance fees and asset quality in private credit remain volatile.

    Among the recent announcements, the most relevant here is Capital Group and KKR’s exclusive plan to roll out target date funds and public private model portfolios. If these products gain traction, they could support the catalyst of higher, more recurring management fees from retirement and wealth clients, while also testing how resilient KKR’s alternative offerings are to the risk of fee compression as more managers push into democratized private market products.

    But investors should also be aware that concentration in alternatives and private credit could become a problem if...

    Read the full narrative on KKR (it's free!)

    KKR’s narrative projects $13.7 billion revenue and $5.4 billion earnings by 2028. This implies a 13.9% yearly revenue decline and an earnings increase of about $3.4 billion from $2.0 billion today.

    Uncover how KKR's forecasts yield a $157.81 fair value, a 22% upside to its current price.

    Exploring Other Perspectives

    KKR Community Fair Values as at Dec 2025
    KKR Community Fair Values as at Dec 2025

    Five Simply Wall St Community fair value estimates for KKR span roughly US$63 to US$170 per share, underscoring how far opinions can stretch. Against that backdrop, the key risk that fundraising and fees could be pressured by rising competition in alternatives becomes a central consideration for anyone weighing these very different views.

    Explore 5 other fair value estimates on KKR - why the stock might be worth less than half the current price!

    Build Your Own KKR Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your KKR research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free KKR research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KKR's overall financial health at a glance.

    Interested In Other Possibilities?

    Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.