OverviewȱofȱPrivateȱEquity

AlexȱNavabAprilȱ2010

1

Let’sȱSetȱtheȱStage

•

PrivateȱEquityȱisȱaȱsignificantȱcomponentȱofȱwhatȱisȱbroadlyȱcalledȱ

alternativeȱassets

•

Alternativeȱassetsȱincludeȱmultipleȱstrategies–

PrivateȱEquityȱ(primaryȱandȱsecondaryȱfunds)–

VentureȱCapitalȱ–

HedgeȱFunds–

RealȱAssetsȱ(eg.,ȱrealȱestate,ȱtimber,ȱinfrastructure)–

Mezzanine,ȱDistressedȱDebt

•

Theseȱtypesȱofȱstrategiesȱshareȱseveralȱcommonȱattributes–

Higherȱexpectedȱreturnsȱthanȱmostȱpublicȱmarketȱstrategies–

Commensurateȱhigherȱrisk–

Typicallyȱlessȱliquidȱthanȱpublicȱmarketȱinvestmentsȱandȱlongerȱ

timeȱhorizonȱtoȱgenerateȱreturns

2

•

Alternativeȱassetȱstrategiesȱtypicallyȱpursuedȱtoȱproduceȱ“alpha”•

LongȬtermȱexpectedȱreturnsȱinȱexcessȱofȱpublicȱmarketȱbenchmarks

RoleȱofȱAlternativeȱAssetsȱinȱanȱInvestmentȱ Portfolio

LongȬte

rmȱre

turn

Fixedȱincome Alternativeȱ

investmentsEquities

MarketȬbasedȱstrategiesSkillȬbasedȱ

strategies

Upperȱ

quartile

Median

Lowerȱ

quartile

BankȱLoans

Mezzanine

HighȱYield

Infrastructure

PrivateȱEquity

DistressedOilȱ&ȱGas

Risk

TargetedȱN

etȱReturn

Riskȱvs

ReturnȱFramework

Note:ȱTheȱinformationȱinȱthisȱslideȱisȱintendedȱtoȱbeȱgenerallyȱindicativeȱofȱmarketȱopportunitiesȱbasedȱonȱKKRȇsȱexperience,ȱitsȱbeliefȱasȱtoȱcurrentȱmarketȱconditionsȱandȱitsȱexpectationsȱas

toȱmarketȱconditionsȱinȱtheȱ

nearȱfuture.ȱActualȱopportunitiesȱmayȱdifferȱsubstantiallyȱfromȱtheȱinformationȱhereinȱandȱthereȱcanȱbeȱnoȱguaranteeȱthatȱactual

opportunitiesȱwillȱcorrespondȱwithȱKKRȇsȱexpectations.ȱNothingȱsetȱforthȱhereinȱisȱorȱshallȱ

beȱdeemedȱtoȱbeȱinvestmentȱadviceȱorȱtheȱofferȱofȱinvestmentȱadviceȱtoȱanyȱrecipientȱhereof.ȱTargetedȱnetȱreturnsȱreferredȱtoȱhereinȱhaveȱbeenȱdeterminedȱbyȱKKRȱonȱtheȱbasisȱofȱestimatesȱandȱassumptionsȱaboutȱ

performanceȱbelievedȱtoȱbeȱreasonableȱinȱlightȱofȱbothȱcurrentȱmarketȱconditionsȱandȱKKR’sȱviewsȱonȱfutureȱmarketȱconditions.ȱInȱevaluatingȱpotentialȱreturns,ȱKKRȱwillȱconsiderȱaȱnumberȱofȱfactors,ȱincluding,ȱforȱ

example,ȱprojectedȱcashȱflows,ȱprojectedȱfutureȱvaluationsȱofȱtargetȱassetsȱandȱbusinesses,ȱrelevantȱotherȱmarketȱdynamicsȱ(includingȱinterestȱrateȱandȱcurrencyȱmarkets),ȱanticipatedȱcontingencies,ȱandȱregulatoryȱissues.ȱ

Actualȱresultsȱandȱeventsȱmay,ȱhowever,ȱdifferȱmateriallyȱfromȱtheȱassumptionsȱunderlyingȱsuchȱanalysis.ȱSuchȱreturnsȱareȱsubjectȱtoȱsignificantȱeconomic,ȱmarket,ȱandȱotherȱuncertaintiesȱthatȱmayȱadverselyȱaffectȱtheȱ

performanceȱofȱindividualȱinvestments.ȱ

3

Advantages

•

LongȬtermȱreturnȱprofileȱcanȱmatchȱlongȬtermȱfundingȱ requirements

•

TopȱquartileȱmanagersȱhaveȱhistoricallyȱoutȬperformedȱpublicȱ benchmarks

•

Structural,ȱgovernanceȱandȱinformationalȱadvantagesȱincreaseȱaȱ manager’sȱabilityȱtoȱdriveȱreturns

Risks

•

Illiquidity•

Performanceȱcanȱvaryȱwidelyȱamongȱmanagers–

Topȱquartileȱselectionȱisȱcritical

•

MarkȬtoȬmarketȱaccountingȱhasȱrecentlyȱresultedȱinȱgreaterȱ volatilityȱofȱunrealizedȱreturns

AdvantagesȱandȱRisksȱofȱAlternativeȱAssets

4

FocusȱonȱPrivateȱEquity

5

2006Ȭ2007Easyȱcredit,ȱlargeȱ

poolsȱofȱcapitalȱ=ȱ

largeȱdeals.ȱTXU,ȱ

largestȱcompletedȱ

buyout

1979Firstȱlargeȱ

buyoutȱofȱaȱ

publicȱcompany,ȱ

Houdaille

Industries

1963FirstȱLBOȱ

completed,ȱ

Orkinȱ

Exterminating

1984Firstȱ$1ȱbillionȱ

buyoutȱfundȱandȱ

firstȱ$1ȱbillionȱ

LBO,ȱWometco

TheȱEvolutionȱofȱPrivateȱEquity•

Leverageȱbuyoutsȱareȱnotȱaȱnewȱphenomena•

Fourȱdecadesȱofȱgrowth;ȱtodayȱaȱrecognizedȱcorporateȱfinanceȱtoolȱandȱ

coreȱassetȱclassȱforȱinstitutionalȱinvestors•

Demandȱforȱandȱsupplyȱofȱprivateȱcapitalȱexpectedȱtoȱgrow•

Multipleȱstrategiesȱfromȱsmallȱbuyoutsȱtoȱlarge,ȱandȱacrossȱgeographies

1995Secondaryȱmarketȱ

forȱprivateȱequityȱ

fundsȱestimatedȱtoȱ

exceedȱ$1ȱbillionȱforȱ

theȱfirstȱtime

1958SmallȱBusinessȱActȱ

allowsȱlicensedȱfirmsȱtoȱ

borrowȱmoneyȱfromȱtheȱ

governmentȱatȱbelowȬ

marketȱinterestȱratesȱtoȱ

investȱinȱentrepreneurialȱ

ventures

1980sPrivateȱequityȱ

becomesȱanȱ

acceptedȱ

corporateȱ

financeȱtool

2000sPostȱ2001,ȱeconomicȱ

expansionȱdrivesȱ

significantȱgrowthȱ

inȱtheȱassetȱclass

2008Ȭ2009Difficultȱcreditȱ

environmentȱ

andȱrecessionȱ

6Source:ȱPreqin,ȱPrivateȱEquityȱCouncil,ȱ2009ȱDataȱfromȱThomsonȱReuters

PrivateȱEquityȱTransactionȱActivityȱ($bn)

$66$111

$144

$246

$295

$685$659

$190

$134

–

$100

$200

$300

$400

$500

$600

$700

$800

2001 2002 2003 2004 2005 2006 2007 2008 2009

RecentȱHistory

7

4.1x 4.1x

4.7x4.9x

5.4x 5.5x

6.2x

4.9x

4.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

2001 2002 2003 2004 2005 2006 2007 2008 2009

Source:ȱS&PȱLCDȱLeverageȱLoanȱReview,ȱleverageȱdataȱforȱU.S.ȱlargeȱcorporateȱLBOs

(issuerȱwithȱEBITDAȱ>$50million)

TotalȱDebtȱ/ȱEBITDA

Leverageȱmultiplesȱ

increasedȱbyȱ50%ȱ

fromȱ2001ȱtoȱ2007

Subsequently,ȱ

decreasedȱtoȱ2001ȱ

levels

RecentȱHistoryȱ(cont’d)

8

Source:ȱS&PȱLCDȱLeverageȱLoanȱReview,ȱPreqin

Ltd.(1)ȱRepresentsȱaverageȱproȱrataȱspreadȱofȱleveragedȱbuyoutȱloans(2)ȱDataȱforȱU.S.ȱlargeȱcorporateȱLBOs

withȱproȱformaȱtrailingȱEBITDAȱ>$50million(3)ȱDataȱforȱallȱU.S.ȱLBOs

AsȱaȱResultȱ.ȱ.ȱ.

PrivateȱEquityȱ

Fundraising

CostȱofȱDebt(1)

PurchaseȱPriceȱ

Multiples(2)

Equityȱasȱaȱ%ȱofȱ

TotalȱSources(3)

2001ȱ–

2007 2008ȱ–

2009

Increasedȱ~235%ȱfromȱ2001ȱ

levelsȱtoȱ$646ȱbillionȱinȱ2007

Decreasedȱ~60%ȱfromȱ2007ȱ

levelsȱtoȱ$246ȱbillionȱinȱ2009

Averageȱ270bpsȱoverȱLIBOR Spikedȱtoȱ565bpsȱoverȱ

LIBORȱ(whenȱavailable)

Roseȱtoȱanȱaverageȱofȱ9.8xȱ

(comparedȱtoȱ6.1xȱinȱ2001)

Fellȱalmostȱ2xȱtoȱanȱaverageȱ

ofȱ7.9xȱ

Declinedȱtoȱ~30% Climbedȱtoȱ~45%

9

WhereȱDoesȱThatȱLeaveȱUsȱToday?

10

•

FinancingȱMarkets–

Pricing,ȱleverageȱandȱtermsȱwillȱlikelyȱrevertȱtoȱpreȬpeakȱlevelsȱ

–

Largeȱdealsȱwillȱrevertȱtoȱ$1Ȭ5ȱbillionȱTEVȱ–

Investorsȱwillȱcontinueȱtoȱresistȱaggressiveȱcapitalȱstructures

•

PEȱReturns–

Quickȱflipsȱwillȱbecomeȱrarer

–

Longerȱholdingȱperiodsȱexpectedȱforȱportfolioȱcompanies–

Strategicȱbuyersȱmayȱbecomeȱmoreȱcompetitiveȱacquirers

WhileȱtheȱOutlookȱforȱPrivateȱEquityȱMayȱ AppearȱChallengingȱ.ȱ.ȱ.ȱ

.ȱ.ȱ.weȱrememberȱtheȱfollowing

11

1)ȱPrivateȱEquityȱisȱCyclical

1984ȱ–

1988

“Financialȱ

Engineeringȱ

Era”

1989ȱ–

1993ȱ

“Slowdownȱ

Era”

1994ȱ–

1998

“GrowthȱEra”

1999ȱ–

2001

“T&TȱBubble”

2002ȱ–

2007

“GoldenȱEra”

2008ȱ–

2009

“Marketȱ

Meltdown”

PEȱGlobalȱ

DealȱVolumeȱ

(Avg/Year)

$40ȱbn $12ȱbn $38ȱbn $97ȱbn $357ȱbn $162ȱbn

%ȱEquityȱ

inȱDealsȱ

(LastȱYear)

10% 22% 30% 38% 33% 45%

Approximateȱȱ

IRRs

(1) 50% 20% 35% 13% 37% ???

Source:ȱMorganȱStanley,ȱS&PȱLCDȱLeverageȱLoanȱReview,ȱPreqin,ȱPrivateȱEquityȱCouncil,ȱ2009ȱDataȱfromȱThomsonȱReutersȱ

(1)ȱȱApproximateȱgrossȱIRRsȱofȱvintageȱyearȱdealsȱbyȱselectedȱlargeȱfunds;ȱ“GoldenȱEra”

IRRȱrepresentedȱbyȱapproximateȱnetȱIRRȱofȱvintageȱyearȱfunds

12

“FinancialȱEngineering”

Approach

~24%ȱNetȱIRR ~27%ȱNetȱIRR

PurchaseȱPrice:

8.0xȱEBITDA

Leverage:

5.5xȱEBITDA

Avg.ȱCostȱofȱDebt:

8.0%

EBITDAȱGrowth:

5.0%

ExitȱMultiple:

10.0xȱEBITDA

Note:ȱTheseȱreflectȱKKRȱestimatesȱbasedȱonȱourȱexperienceȱinȱthe

privateȱequityȱbusinessȱandȱareȱhypotheticalȱonly.ȱTheseȱdoȱnot

reflectȱanyȱactualȱterms,ȱstructureȱorȱreturnsȱofȱanyȱpast,ȱpresentȱorȱ

futureȱinvestments.

PurchaseȱPrice:

8.0xȱEBITDA

Leverage:ȱ

4.5xȱEBITDA

Avg.ȱCostȱofȱDebt:

10.0%

EBITDAȱGrowth:

15.0%

ExitȱMultiple:

8.0xȱEBITDA

“ValueȱCreation”

Approach

2)ȱPrivateȱEquityȱisȱAdaptable

•

Asȱtheȱworldȱinȱwhichȱweȱoperateȱchanges,ȱprivateȱequityȱcan,ȱ andȱdoes,ȱchangeȱitsȱapproachȱandȱbusinessȱmodel

•

Weȱbelieveȱtoday’sȱmodelȱisȱaboutȱdrivingȱoperationalȱvalue

13

3)ȱOperationalȱValueȱCreationȱisȱtheȱ“Gameȱ Changer”

•

Controlȱpositionsȱenableȱprivateȱequityȱinvestorsȱtoȱexertȱmoreȱ

influence

onȱtheȱperformanceȱofȱtheirȱportfolioȱcompanies

•

Sourcesȱofȱvalueȱcreationȱinclude:

ȭ

Newȱrevenueȱopportunities

ȭ

Controllingȱexpensesȱandȱimprovingȱsalesforce

effectiveness

ȭ

Managementȱofȱcapitalȱbudgetsȱandȱbalanceȱsheets

ȭ

Managingȱstakeholder/brandȱissuesȱeffectivelyȱwhichȱsupportsȱ

allȱofȱtheȱabove;ȱand� Employees� Customers� Regulators� ProspectiveȱInvestors

14

3.0%

13.8%

11.4%

(5.4%)

1.0%

(0.2%)

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

3ȱYear 5ȱYear 10ȱYear

PrivateȱEquity S&Pȱ500

4)ȱPrivateȱEquity,ȱOverȱtheȱLongȬTerm,ȱHasȱ HistoricallyȱOutperformedȱPublicȱMarkets

Source:ȱ

CambridgeȱAssociatesȱLLCȱBenchmarkȱStatistics,ȱGlobalȱ(ExȬUS)ȱVentureȱCapitalȱ&ȱPrivateȱEquityȱIndex,ȱSeptemberȱ30,ȱ2009.

(1)ȱ

S&Pȱ500ȱIndexȱincludesȱreinvestmentȱofȱdividends,ȱandȱdoesȱnotȱincludeȱdeductionȱforȱanyȱtaxes,ȱexpenses,ȱtransactionȱcostsȱorȱadvisoryȱfees.

(1)

CambridgeȱAssociatesȱGlobalȱPrivateȱEquityȱIndex

~1,000bpsȱ

outperformance

15

.ȱ.ȱ.ȱparticularlyȱemergingȱfromȱaȱrecession

RecessionȱPeriod

5)ȱImportantȱtoȱStayȱtheȱCourseȱonȱVintageȱ YearȱDiversificationȱ.ȱ.ȱ.

RecessionȱPeriod37.5%

13.1%

21.8%

12.3%

21.6%

15.4%

9.9% 9.7%

14.0%

18.0%20.1%

11.8%

16.0%

18.7%

24.8%

26.4%

21.7%

11.4%

25.9%

29.8%

14.2%

30.5%

0%

10%

20%

30%

40%

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

VintageȱYear

NetȱIRR

Source:ȱ

ThomsonȱReutersȱVenturExpert

Database.ȱReflectsȱcumulativeȱvintageȱyearȱperformanceȱforȱtopȬquartileȱU.S.ȱbuyoutȱfundsȱasȱofȱJuneȱ30,ȱ2009.ȱReturnsȱareȱnetȱofȱallȱmanagementȱandȱ

performanceȬrelatedȱfees.Note:ȱ

Pastȱperformanceȱisȱnotȱaȱguaranteeȱofȱfutureȱresults.

16

CurrentȱOutlook

17

•

CreditȱmarketsȱreȬopenedȱinȱ2009,ȱaȱpreȬrequisiteȱforȱbuyoutȱactivity’sȱ

recovery

•

Corporateȱactivityȱincreasingȱasȱeconomyȱimprovesȱleadingȱtoȱmoreȱ

divestitureȱactivity

•

Investmentȱopportunitiesȱinclude:–

Leveragedȱcompaniesȱneedingȱtoȱsellȱassets–

Publicȱtoȱprivatesȱofȱundervaluedȱbusinesses–

Corporationsȱneedingȱcapitalȱforȱacquisitions–

Structuredȱminorityȱinvestments–

CompaniesȱfacingȱnearȬtermȱdebtȱmaturitiesȱ– “goodȱbusinesses,ȱ

badȱbalanceȱsheets”

PrivateȱEquityȱOpportunitiesȱToday

Forȱtheȱrightȱcompany

inȱtheȱrightȱindustry

withȱtheȱ rightȱsponsor,ȱfinancingȱisȱavailable

Forȱtheȱrightȱcompany

inȱtheȱrightȱindustry

withȱtheȱ rightȱsponsor,ȱfinancingȱisȱavailable

18

2009ȱandȱ2010ȱYTDȱAnnouncedȱGlobalȱPEȱ DealsȱOverȱ$1ȱbillion

•

Despiteȱlimitedȱactivity,ȱPEȱfundsȱhaveȱbeenȱableȱtoȱdeployȱ capitalȱopportunistically,ȱandȱinȱsize,ȱinȱ2009ȱandȱYTD

Source: Dealogic as of March 15, 2010.

Announced Target Industry Acquiror Value ($mm)

1/2/2009 IndyMac Bank FSB U.S. bank IMB; MSD; Soros; JC Flowers, Stone Point 1,550.0 3/19/2009 Immoeast Immobilien Anlagen Austrian property company Vienna Capital Partners; Apollo 2,617.5 3/19/2009 USJ Co. Ltd. Japanese theme park operator Goldman Sachs; MBK Partners; Owl Creek 1,375.7 3/30/2009 Fifth Third Processing U.S. financial services Advent Investment Group 1,811.0 4/7/2009 New City Residence Inv. Japanese REIT Lone Star Funds 1,115.6 5/6/2009 Allco Finance Australian aviation business Hainan Airlines; Bravia Capital Partners 2,986.0 5/7/2009 Oriental Brewery South Korean brewery KKR.; Affinity 1,810.0

5/29/2009 Enel Rete Gas Italian natural gas distributor F2i Fondi Italiani per le infrastrutture; AXA 1,714.7 9/1/2009 Skype Technologies Internet-calling unit Silver Lake; CPPIB; Others 2,025.0 9/7/2009 Chartered Semiconductor Singaporean semiconductor manufacturer Advanced Technology Investment Company 3,904.0

9/30/2009 Invitel Holdings Hungarian telecommunications provider Mid Europa Partners 1,110.9 10/7/2009 Busch Entertainment Corp. U.S. theme park operator Blackstone 2,300.0

10/12/2009 Constantia Packaging Austrian flexible packaging One Equity Partners 1,206.3 10/15/2009 Anheuser-Busch InBev (CEE division) Central European brewing operations CVC 3,031.0 10/21/2009 Gatwick Airport Ltd. U.K. airport Global Infrastructure Partners 2,476.4 11/5/2009 IMS Health Inc. U.S. healthcare data company TPG; CPPIB 5,203.4 11/8/2009 TASC Inc. U.S. government consulting business KKR; General Atlantic 1,650.0

11/15/2009 Bellsystem24 Inc. Japanese telemarketer Bain 1,115.6 12/8/2009 Marken Ltd. U.K. healthcare services Apax Partners LP 1,602.0

12/11/2009 Springer Science + Business Media German academic publisher EQT; GIC 3,387.0 12/16/2009 Cedar Fair LP U.S. amusement park operator Apollo 2,314.4 1/27/2010 Pets At Home Ltd U.K. pet retailer KKR 1,545.9 2/4/2010 KNM Group Bhd Malaysian industrial equipment manufacturer BlueFire; GS; Mettiz 1,285.0

2/12/2010 SkillSoft Plc U.S.-based e-learning and training Berkshire; Bain; Advent Investment Group 1,095.2 2/23/2010 Ambea AB (75%) Nordic healthcare company Triton 1,156.7 3/2/2010 Styron Corp Plastics unit of Dow Chemical Bain 1,630.0 3/5/2010 RCN Corp U.S. cable company Abry Partners 1,211.8

3/12/2010 Willcom Inc Japanese mobile phone carrier Advantage Partners 1,449.4

19

IndustryȱExpertiseȱ/ȱSourcing

•Deepȱindustryȱspecializationȱ•Focusedȱeffortȱonȱbuildingȱ

relationshipsȱwithȱindustryȱ

CEOsȱandȱotherȱexperts

InvestmentȱExperience

•Investmentȱjudgmentȱhonedȱoverȱ

multipleȱeconomicȱcycles

•ProvenȱlongȬtermȱtrackȬrecord

OperationalȱCapability

•Abilityȱtoȱworkȱwithȱ

portfolioȱcompanyȱmanagersȱ

toȱhelpȱidentifyȱandȱ

implementȱoperationalȱ

improvementsȱ

CapitalȱMarkets

•Expertiseȱinȱcapitalȱ

structures,ȱrefinancings,ȱ

IPOsȱinȱorderȱtoȱaidȱ

portfolioȱcompanyȱ

recapitalizations

ClientȱManagement

•Internalȱteamȱfocusedȱonȱ

building,ȱmaintainingȱandȱ

expandingȱinvestorȱ

relationships

StakeholderȱManagement

•Focusȱonȱalignmentȱofȱ

interestsȱwithȱbroadȱgroupȱ

ofȱstakeholders

•Integratedȱintoȱinvestmentȱ

decisionsȱandȱtransactionȱ

processes

Peopleȱ

andȱ

Culture

CriticalȱAttributesȱforȱSuccessȱinȱPrivateȱ Equity

20

ImportantȱInformationThisȱpresentationȱ(“Presentation”)ȱisȱbeingȱmadeȱforȱtheȱsoleȱpurposeȱofȱprovidingȱcertainȱinformationȱaboutȱKohlbergȱKravisȱRobertsȱ&ȱCo.ȱ(togetherȱ

withȱitsȱaffiliates,ȱ“KKR”)ȱandȱitsȱviewsȱofȱtheȱprivateȱequityȱindustry.ȱThisȱPresentationȱdoesȱnotȱconstituteȱanȱofferȱtoȱsellȱorȱaȱsolicitationȱofȱanȱofferȱ

toȱpurchaseȱanyȱsecurityȱofȱanyȱinvestmentȱvehicleȱorȱproductȱsponsoredȱorȱmanagedȱbyȱKKRȱ(each,ȱaȱ“KKRȱProduct”).ȱȱAnyȱsuchȱofferȱorȱsolicitationȱ

willȱonlyȱbeȱmadeȱpursuantȱtoȱtheȱfinalȱconfidentialȱprivateȱplacementȱmemorandumȱ(orȱitsȱequivalent)ȱissuedȱwithȱrespectȱtoȱaȱKKRȱProductȱ(each,ȱaȱ

“Memorandum”),ȱwhichȱqualifiesȱinȱitsȱentiretyȱtheȱinformationȱsetȱforthȱhereinȱandȱwhichȱshouldȱbeȱreadȱcarefullyȱpriorȱtoȱanyȱinvestmentȱinȱaȱKKRȱ

Productȱforȱaȱdescriptionȱofȱtheȱmeritsȱandȱrisksȱofȱsuchȱanȱinvestment.ȱȱAnȱinvestmentȱinȱanyȱKKRȱProductȱwillȱentailȱaȱhighȱdegreeȱofȱriskȱandȱnoȱ

assuranceȱ

canȱ

beȱ

givenȱ

thatȱ

investmentȱ

objectivesȱ

willȱ

beȱ

achieved.ȱ

Eachȱ

Memorandumȱ

willȱ

containȱ

aȱ

detailedȱ

descriptionȱ

ofȱ

theȱ

risksȱ

thatȱ

mayȱ

beȱ

involvedȱ

inȱ

investingȱ

inȱ

aȱ

KKRȱ

Product.ȱ

Thisȱ

Presentationȱ

isȱ

not

intendedȱ

toȱ

provideȱ

informationȱ

importantȱ

toȱ

aȱ

decisionȱ

toȱ

purchaseȱ

orȱ

sellȱ

anyȱ

commonȱunitsȱorȱrestrictedȱdepositaryȱunitsȱofȱKKRȱ&Co.ȱ(Guernsey)ȱL.P.

Informationȱ

providedȱ

inȱ

thisȱ

Presentationȱ

aboutȱ

anyȱ

KKRȱ

Productȱ

andȱ

investmentsȱ

madeȱ

byȱ

suchȱ

KKRȱ

Products,ȱ

includingȱ

pastȱ

performance,ȱ

isȱ

providedȱsolelyȱtoȱillustrateȱKKR’sȱinvestmentȱexperience,ȱandȱprocessesȱandȱstrategiesȱusedȱbyȱKKRȱinȱtheȱpastȱwithȱrespectȱtoȱsuchȱKKRȱProducts.ȱȱ

Hypotheticalȱ

performanceȱ

informationȱ

inȱ

thisȱ

Presentationȱ

relatingȱ

toȱ

investmentsȱ

isȱ

notȱ

intendedȱ

toȱ

beȱ

indicativeȱ

ofȱ

anyȱ

KKRȱ

Product’sȱ

futureȱ

results.ȱPastȱperformanceȱisȱnotȱindicativeȱofȱfutureȱresultsȱandȱthereȱcanȱbeȱnoȱassuranceȱthatȱanyȱKKRȱProductȱwillȱachieveȱcomparableȱresults.

Unlessȱspecified,ȱanyȱviewsȱreflectedȱhereinȱareȱthoseȱofȱKKRȱandȱareȱsubjectȱtoȱchangeȱwithoutȱnotice.ȱȱCertainȱofȱtheȱinformationȱcontainedȱherein,ȱ

particularlyȱinȱrespectȱofȱmarketȱdataȱandȱeconomicȱandȱotherȱforecasts,ȱisȱfromȱthirdȱpartyȱsources.ȱȱKKRȱdoesȱnotȱrepresentȱthatȱsuchȱinformationȱisȱ

accurateȱorȱcomplete,ȱandȱKKRȱhasȱ

notȱundertakenȱanyȱindependent

reviewȱofȱ

suchȱ

information.ȱ ȱTheȱstatementsȱ

containedȱinȱ

thisȱPresentationȱ

areȱ

madeȱasȱatȱ

theȱ

dateȱ

ofȱ

thisȱPresentation,ȱunlessȱanotherȱ

timeȱis

specifiedȱinȱ

relationȱ

toȱ

them,ȱ

andȱ

theȱ

deliveryȱ

ofȱ

thisȱ

Presentationȱ

atȱ

anyȱ

givenȱ

timeȱ

shallȱ

notȱ

giveȱ

riseȱ

toȱ

anyȱ

implicationȱ

thatȱ

thereȱ

hasȱ

beenȱ

noȱ

changeȱ

inȱ

theȱ

factsȱ

setȱ

forthȱ

inȱ

thisȱ

Presentationȱ

sinceȱ

thatȱ

date.ȱ ȱKKRȱ

isȱ

underȱ

noȱ

obligationȱtoȱupdateȱorȱkeepȱ

currentȱ

theȱinformationȱ

containedȱ

hereinȱ

orȱ

toȱ

correctȱ

anyȱinaccuracyȱ

containedȱ

hereinȱexceptȱ

asȱexplicitlyȱ

requiredȱbyȱ

law.ȱNoȱpartȱofȱthisȱPresentationȱconstitutesȱinvestment,ȱlegal,

tax,ȱregulatory,ȱaccountingȱorȱotherȱadviceȱofȱanyȱkind.ȱ

Theȱ

S&Pȱ

500ȱ

Indexȱ

isȱ

aȱ

capitalizationȬweightedȱ

indexȱ

ofȱ

theȱ

largest,ȱ

publiclyȱ

tradedȱ

U.S.ȱ

companies,ȱ

andȱ

isȱ

usedȱ

forȱ

purposesȱ

ofȱ

comparisonȱ

toȱ

representȱ

broadlyȱ

theȱ

performanceȱ

ofȱ

theȱ

U.S.ȱ

stockȱ

market.ȱ ȱThe

returnȱ

figuresȱ

forȱ

thisȱ

indexȱ

takeȱ

intoȱ

accountȱ

changesȱ

inȱ

priceȱ

andȱ

grossȱ

cashȱ

dividendsȱ

paidȱ

byȱ

securitiesȱ

comprisingȱ

theȱindex.ȱȱTheȱ

returnȱ

figuresȱ

forȱ

theȱ

indexȱ

doȱ

notȱ

reflectȱ

theȱ

deductionȱ

ofȱ

anyȱ

taxes,ȱ

expenses,ȱ

transactionȱ

costs,ȱorȱadvisoryȱfees.ȱȱItȱisȱnotȱpossibleȱtoȱinvestȱdirectlyȱinȱanȱunmanagedȱindex.

Certainȱinformationȱ

containedȱinȱ

thisȱ

Presentationȱ

constitutesȱ

“forwardȬlookingȱ

statements,”

whichȱ

canȱ

beȱ

identifiedȱ

byȱ

theȱ

useȱ

ofȱ

forwardȬlookingȱ

terminologyȱ

suchȱ

asȱ

“may,”

“will,”

“should,”

“expect,”

“anticipate,”

“project,”

“estimate,”

“intend,”

“continue,”

“target,”

“believe,”

theȱ

negativesȱ

thereof,ȱotherȱvariationsȱthereonȱorȱcomparableȱterminology.ȱȱDueȱtoȱvariousȱrisksȱandȱuncertainties,ȱactualȱeventsȱorȱresultsȱorȱtheȱactualȱperformanceȱ

ofȱanyȱKKRȱProductȱmayȱdifferȱmateriallyȱfromȱthoseȱreflectedȱor

contemplatedȱinȱsuchȱforwardȬlookingȱstatements.

Thisȱ

Presentationȱ

andȱ

itsȱ

contentsȱ

areȱ

strictlyȱ

confidential.ȱ

By

acceptanceȱ

ofȱ

theseȱ

materials,ȱ

eachȱ

recipientȱ

agreesȱ

toȱ

keepȱ

thisȱ

Presentationȱ

andȱ

itsȱ

contentsȱconfidentialȱandȱnotȱtoȱreproduceȱorȱdiscloseȱthemȱtoȱanyȱpersonȱwithoutȱtheȱpriorȱwrittenȱconsentȱofȱKKR.ȱ