Markets; where capital is issued and traded

Market

Primary market

The market in which issuers sell newly created securities to investors.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Issuance
Capital position: New securities
Common use: Raise fresh capital or place selling-shareholder stock
Risk lens: Instrument-specific

Illustrative public or category examplesIPOsBond issuesPrivate placements

Market

Secondary market

The market in which existing securities or fund interests change hands between investors.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: After issuance
Capital position: Existing securities
Common use: Provide liquidity and price discovery
Risk lens: Instrument-specific

Illustrative public or category examplesStock exchangesOTC bond marketsPrivate secondaries

Market

Public equity market

Exchange or regulated venue for listed shares.

Illustrative public proxy6.1% p.a.

KKR 5-year USD expected annualized total return for global public equity; this is a portfolio assumption, not a company return target.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Listed
Capital position: Common and preferred shares
Common use: Trade ownership in public companies
Risk lens: High market volatility

Illustrative public or category examplesNational exchangesInstitutional investorsRetail brokers

Market

Public bond market

Tradable market for sovereign, corporate, municipal and structured debt securities.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Public debt
Capital position: Bonds and notes
Common use: Fund issuers and provide tradable fixed income
Risk lens: Credit and duration-specific

Illustrative public or category examplesGovernment bondsCorporate bondsSukuk

Market

Private-equity market

Negotiated ownership market for companies and assets outside public exchanges.

Illustrative public proxy10.8% p.a.

KKR 5-year USD expected annualized total return for private equity; this is neither a fund target nor a guaranteed IRR.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Private
Capital position: Fund interests and direct equity
Common use: Fund growth, buyouts and ownership transitions
Risk lens: High and illiquid

Illustrative public or category examplesPrivate-equity fundsFamily officesSovereign investors

Market

Private-credit market

Negotiated non-public lending market spanning direct, asset-based, junior and special-situations credit.

Illustrative public proxy6.7% return; 8.1% yield

KKR 5-year expected annualized return and current yield for direct lending in USD; deal pricing and realized loss experience vary.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Private
Capital position: Loans and private notes
Common use: Provide bespoke non-bank capital
Risk lens: Medium to very high

Illustrative public or category examplesAres CreditDirect lendersInstitutional accounts

Market

Over-the-counter market

A dealer or bilateral market where instruments trade outside a centralized exchange order book.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Public or private
Capital position: Bonds, derivatives and currencies
Common use: Trade customized or less standardized instruments
Risk lens: Instrument and counterparty-specific

Illustrative public or category examplesDealer banksInstitutional investorsElectronic venues

Market

Exchange-traded market

An organized venue with standardized listing, trading and market rules.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Public
Capital position: Listed securities and derivatives
Common use: Centralize liquidity and price discovery
Risk lens: Instrument-specific

Illustrative public or category examplesStock exchangesFutures exchangesClearing houses

Market

Institutional market

Transactions primarily among professional investors such as funds, banks, insurers and pensions.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Public and private
Capital position: Multiple instruments
Common use: Allocate large pools of capital
Risk lens: Mandate-specific

Illustrative public or category examplesPension fundsInsurance companiesAsset managers

Market

Retail market

Investment activity undertaken by individuals through regulated intermediaries and products.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Usually liquid
Capital position: Public securities and eligible products
Common use: Personal saving and investing
Risk lens: Investor and product-specific

Illustrative public or category examplesIndividual investorsBrokerage platformsMutual funds

Geographic classification

Developed market

A market classified by an index provider using criteria such as accessibility, liquidity and economic development.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Geographic
Capital position: Public and private assets
Common use: Allocate by market maturity and access
Risk lens: Country and asset-specific

Illustrative public or category examplesDeveloped-market indicesGlobal asset managers

Geographic classification

Emerging and frontier markets

Markets with different levels of access, liquidity, institutional development and country risk under provider-specific classifications.

No universal returnMandate-specific

The capital-provider mandate, instrument, geography, currency, risk and duration determine the relevant return measure.

Last verified: 9 August 2026

Structure, risk and examples

Stage / setting: Geographic
Capital position: Public and private assets
Common use: Access growth and diversification with additional risks
Risk lens: High dispersion

Illustrative public or category examplesEmerging-market fundsDFIsSovereign investors

Markets; where capital is issued and traded

Locate the transaction

Primary market

Secondary market

Public equity market

Public bond market

Private-equity market

Private-credit market

Over-the-counter market

Exchange-traded market

Institutional market

Retail market

Developed market

Emerging and frontier markets