Everybody—or at least almost everybody—wants to know how to invest these days. With the markets looking less like a functional organization and more like a labyrinth designed in the midst of a fever dream, knowing where to go has never been so vital. In aid of that, KKR (NYSE:KKR) got together with Capital Group to bring out a new slate of investment solutions. The news sent KKR stock up fractionally in Thursday morning’s trading.
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The new solutions developed by the two investment firms are focused on ways to bring alternative investments (investments that aren’t stocks, bonds, or cash) into investors’ overall portfolios. Starting in 2025, the duo will offer up “public-private fixed income offerings,” which are geared toward financial professionals and their clients.
Normally, such alternatives are only available to “accredited investors,” which basically means “people who have a lot more money than most investors do.” But now, more normal investors will be able to get in on these previously unavailable asset classes.
A Significant Potential Win
Such investments have delivered significant value for investors. Reports note that the alternative asset market is expected to grow at about 12% annually over the next 10 years. While the complete package will take some time to flesh out—KKR and Capital Group are expected to announce the full slate of details later this year—it’s likely already drawing interest from investors who have been stymied when it comes to investing in this field.
Meanwhile, KKR is joining up with TPG (NASDAQ:TPG) in its own sort of alternative investment: Southeast Asian real estate. It’s looking to potentially buy out PropertyGuru Group Ltd., an online real estate platform.
Is KKR a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on KKR stock based on 10 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 117.38% rally in its share price over the past year, the average KKR price target of $118.27 per share implies 10.92% upside potential.
Is KKR the Right Stock to Buy for Passive Income?
Before you hurry to invest in KKR, think about the following:
TipRanks’ team has built a Smart Dividend Stock Portfolio for investors, and KKR is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant passive income for years to come.
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