Capital Group and KKR have launched two new interval funds that double quarterly share repurchase limits from the industry-standard 5% to 10%, offering a more liquid twist on traditionally illiquid products. 

The funds—Core Plus+ and Multi-Sector+—blend public and private credit, allowing them to support higher liquidity while still targeting alternative-style returns. Advisors are watching closely, as adding liquidity by holding more cash or Treasuries could dilute performance even as it broadens investor access. 

The move comes amid surging demand for alternatives, with interval fund sales tripling in recent years and overall alternative investment fundraising expected to hit $200 billion this year. While advocates say these products help democratize private credit, skeptics warn that rising rates or economic stress could expose the risks in leveraged private-market borrowers. 

Finsum: Many advisors may take a cautious, wait-and-see approach before embracing the new 10% liquidity model, but some may be more willing.