Doug Krupa, Americas Head of Global Wealth Solutions for KKR, joined Keith Black, Managing Director of RIA Channel, to discuss how private market investments are becoming increasingly accessible in the RIA channel.
The RIA channel controls $8 trillion in assets, which could double by 2027, making it larger than the wirehouse and private bank channels. While private market investments are popular with many types of investors, penetration remains low in the RIA channel.
KKR has built an RIA team of ten individuals who are dedicated to making the investing process more accessible. KKR is now offering products that allow accredited investors to access asset classes such as private equity, private credit, private infrastructure, and private real estate.
KKR started in the wealth space about 15 years ago, offering institutional-style funds with capital calls, ten-year lives, and K-1 tax accounting. Today’s offerings are more accessible to RIAs and accredited investors, including evergreen vehicles allowing immediate investments rather than a capital call structure. The newer solutions include streamlined processes for new investments, lower minimum investment sizes, and tax information available by March 15 each year. The evergreen vehicles access the same deal flow as the traditional institutional funds.
Transitioning private credit and private real estate funds was easier due to the existing BDC and REIT structures. Because KKR invests in controlling stakes in private equity and private infrastructure assets, operating companies were built to hold the assets.