kkr overview and organizational summary

8/10/2019 KKR Overview and Organizational Summary

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July 16, 2012

KKR Overview and OrganizationalSummaryTodd A. Fisher


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Important InformationThis presentation is furnished on a confidential basis exclusively to the named recipient of this presentation (the Recipient) and is not for redistributionor public use. The data and information presented are for informational purposes only. The information contained herein should be treated in aconfidential manner and may not be transmitted, reproduced or used in whole or in part for any other purpose, nor may it be disclosed without the priorwritten consent of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) . By accepting this material, the Recipient agrees not todistribute or provide this information to any other person. The information is qualified in its entirety by reference to the Limited Partnership Agreement,

Confidential Private Placement Memorandum and Subscription Agreement of each Fund (as defined below), each as amended and/or restated from time totime (the Fund Documents) .

The interests in the funds referenced herein (collectively, the Funds) advised by KKR (the Interests) have not been approved or disapproved by theU.S. Securities and Exchange Commission (the SEC) or by the securities regulatory authority of any state or of any other jurisdiction. The Interestshave not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act), the securities laws of any other state or the securitieslaws of any other jurisdiction, nor is such registration contemplated. None of the Funds will be registered as an investment company under theInvestment Company Act of 1940, as amended (the 1940 Act) . Consequently, limited partners of the Funds are not afforded the protections of the1940 Act.

This presentation shall not constitute an offer to sell or the solicitation of any offer to buy Interests, which may only be made at the time a qualifiedofferee receives a Confidential Private Placement Memorandum describing the offering and related subscription agreement. These securities shall not beoffered or sold in any jurisdiction in which such offer, solicitation or sale would be unlawful until the requirements of the laws of such jurisdiction havebeen satisfied.

The information in this presentation is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons.Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or other decision. Thispresentation should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt anyinvestment strategy.

Private funds, such as the Funds, are speculative investments and are not suitable for all investors, nor do they represent a complete investmentprogram. Private funds are available only to qualified investors who are comfortable with the substantial risks associated with investing in private funds.An investment in a private fund includes the risks inherent in an investment in securities. There can be no assurance that an investment strategy will besuccessful.

Investors in a private fund, such as the Funds, may have no right to or a limited right to redeem or transfer their interests in a private fund. No Interestswill be listed on an exchange and it is not expected that there will be a secondary market for any Interests.

The information in this presentation may contain projections or other forward-looking statements regarding future events, targets or expectationsregarding the Funds or the strategies described herein, and is only current as of the date indicated. There is no assurance that such events or targets willbe achieved, and may be significantly different from that shown here. The information in this Presentation, including statements concerning financialmarket trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other r easons.

This presentation is distributed by KKR Capital Markets LLC (KCM), a broker-dealer registered with the U.S. Securities and Exchange Commission and amember of FINRA and SIPC.

In this presentation, references to assets under management or AUM represent the assets as to which KKR is entitled to receive a fee or carriedinterest and general partner capital. KKRs calculation of AUM may differ from the calculations of other asset managers and, as a result, KKRs measurements of its AUM may not be comparable to similar measures presented by other asset managers. KKRs definition of AUM is not based on anydefinition of AUM that is set forth in the agreements governing the Funds or any KKR products or calculated pursuant to any regulatory requirements.


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Important Information (contd) References to KKR Capstone or Capstone are to all or any of Capstone Consulting LLC, Capstone Europe Limited, and KKR Capstone Asia Limited, eachof which is owned and controlled by their senior management and not by KKR. KKR Capstone uses the KKR name under license from KKR. KKRCapstone is not a subsidiary or other affiliate of KKR.

General discussions contained within this presentation regarding the market or market conditions represent the view of either the source cited or KKR.

Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match theassumptions or that actual returns will match any expected returns. The information contained herein is as of March 31, 2011, unless otherwiseindicated, is subject to change, and KKR assumes no obligation to update the information herein.

This presentation is only being distributed to and is only directed at (A) persons who are outside of the United Kingdom or (B) persons who are (i)investment professionals falling within both Article 14 of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes)(Exemptions) Order 2001 (the CIS Promotion Order) and Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001(the Financial Promotions Order), (ii) high net worth companies and other persons falling within both Article 22 of the CIS Promotion Order and Article49 of the Financial Promotion Order, (iii) other persons who fall within an exemption both in the CIS Promotion Order and of the Financial PromotionOrder or (iv) other persons to whom both an invitation or inducement to engage in investment activity (within the meaning of section 21 FinancialServices and Markets Act 2000 (FSMA)) and an invitation or inducement to participate in a collective investment scheme (within the meaning of section238 FSMA) can lawfully be communicated. The persons specified in (B)(i), (ii), (iii) and (iv) above are collectively referred to as Relevant Persons . Anyperson in the United Kingdom who is not a Relevant Person should not act or rely on this Presentation or any of its contents.

This presentation is being made available by KKR MENA Limited on a confidential basis solely to professional clients (as defined by the Dubai FinancialServices Authority) on a one -on- one basis for the purpose of providing certain information about Kohlberg Kravis Roberts & Co. L.P. (together with itsaffiliates, KKR) and certain investment funds and other investment vehicles and products managed by KKR. KKR MENA Limited is a Dubai InternationalFinancial Centre company which is regulated by the Dubai Financial Services Authority.

In Australia, this presentation is being distributed by KKR Australia Pty Limited (A.C.N 126 516 336 A.F.S.L 336127) and is directed to wholesale clientsonly as defined by Corporations Act 2001. The distribution of the information in jurisdictions outside Australia may be restricted by law and persons intowhose possession the information comes should inform themselves about, and observe, any such restrictions. Any failure to comply with theserestrictions may constitute a violation of the laws of an applicable jurisdiction. KKR and its directors or employees advise that they and personsassociated with them may have an interest in the financial products discussed and that they may receive brokerage, commissions, fees and other benefitsand advantages, whether pecuniary or not and whether direct or indirect, in connection with certain investment funds and other investment vehicles andproducts managed by KKR.


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Program Overview

Program Participants

38 new Associates/Analysts in the full training program 15 Private Equity (4 NYO, 3 MPO, 1 Houston, 3 Europe/MENA, 4 Asia-Pacific)

5 Asset Management (3 NYO, 1 SFO, 1 Europe/MENA)

3 Capital Markets (2 NYO, 1 Asia-Pacific)

6 CPG (4 NYO, 1 SFO, 1 Europe/MENA)

7 Capstone (1 NYO, 2 MPO, 2 Europe/MENA, 2 Asia-Pacific)

2 TRS (Teacher Retirement System of Texas)

Presenters / Session Leaders / Social Event Hosts

~85 executives across KKRs businesses, functions and offices


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Who Are We?

Leading investment firmPrivate Equity, Infrastructure & Natural Resources,Credit Strategies, Alternative Credit, Equity Strategies

Global presence Offices in 14 major cities in 9 countries across 4 continents

One - firm culture that evolves, learns, and innovates Adaptive to change

Relationship-driven approachSourcing investment opportunities

Partnering with clients

Aligned with our partnersEat our own cooking

Economic incentives driven by resultsFocused on managing stakeholder interests

Assets Under Management As of March 31, 2012

($ in billions)

Established in 1976, Kohlberg Kravis Roberts & Co. L.P. (KKR) is a leading globalinvestment firm with industry-leading investment experience, in-depth industry

knowledge, sophisticated processes for growing and improving businesses, and a strongculture committed to teamwork

Note: Please see Important Information for a description of Assets Under Management calculation.

$46.0

$16.3

Private Markets Public Markets


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KKR Timeline

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Today

KKR Capstone

Industry group focus

European privateequity business

2000 - 2004

KKR Asset Management(KAM)

KKR Private Equity Investors(KPE)

KKR Capital Markets (KCM)

Client & Partner Group Global expansion into Asia,

Australia and Middle East

2004 - 2009

Business combinationwith KPE

Publicly-traded onEuronext Amsterdam

10.01.09

North Americanprivate equity firm

1980s - 1990s

KKR Founded

1976

Publicly-tradedon NYSE

07.15.10

Mezzanine / SpecialSituations

Infrastructure

Natural Resources

KKR Equity Strategies

Real Estate

2010 - 2011

Pendingacquisition ofPrisma CapitalPartners

2012


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$5.2 bn of

Segment NAV

KKR Today

$46 bn AUM

Private Equity

Natural Resources

Infrastructure

Real Estate

$24 bn AUM

Leveraged Credit

Mezzanine/DirectLending

Special Situations

Equity Strategies Hedge Fund of Funds

Public MarketsPrivate Markets Capital Markets &Principal Activities

Capital Markets

Balance Sheet

Total Book Value of$8.67 per Adjusted

Unit

Note: Market capitalization as of July 6, 2012. Segment figures and unitholder information as of March 31, 2012 (pro forma for pending Prisma acquisition).


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Note: PE designation includes private equity, infrastructure, and natural resources executives.* Includes certain other KKR executives working in legal, compliance, IT, IR, and financial, tax and accounting functions, who are not represented on the

above map.

PEKCMKAMKESCPG

KKR CapstoneGMAA

New York

KAM

CPG

San Francisco

PEKKR Capstone

Menlo Park

HoustonPublic Affairs

Washington DC

PEKCM

KAMCPGKKR Capstone

London

PE

Paris

CPG

DubaiPE

KCMKKR Capstone

Mumbai

PEKKR Capstone

Sydney

PEKCMCPG

KKR Capstone

Hong Kong

PECPG

KKR Capstone

Beijing

PECPG

KKR Capstone

Tokyo

Over 600 Executives and Professionals around the globe*~150 in private equity, infrastructure and real estate~60 in credit, mezzanine and equity strategies~80 in capital markets and client service~60 operations executives in KKR Capstone~80 executives in Business Operations~200 professionals

KKR Private Equity (PE)KKR Capital Markets (KCM)KKR Asset Management (KAM)KKR Equity Strategies (KES)Client & Partner Group (CPG)KKR CapstonePublic AffairsGlobal Macro & Asset Allocation (GMAA)

Global Presence of:

KKR: A Global Investment Firm

PEKKR Capstone

PE

Seoul


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Units % of % of Unitholder (MM) Total Public

Lexington 19.5 2.9% 8.4%Waddell & Reed 15.1 2.2% 6.5%Fidelity 10.0 1.5% 4.3%Ariel 6.5 0.9% 2.8%Credit Suisse 6.3 0.9% 2.7%Omega 5.4 0.8% 2.3%Wellington 0.7 0.1% 0.3%Swiss Re 4.4 0.6% 1.9%MSSB 3.7 0.5% 1.6%Serengeti 4.0 0.6% 1.7%

Top 10 Unitholders 75.5 11.0% 32.6%

Other Unitholders 156.2 22.9% 67.4%Public Unitholders 231.7 33.9% 100.0%

KKR Executives 451.7 66.1%Total KKR 683.4 100.0%

KKR as a Public Company

Ownership Today

Note: Market data and estimates as of June 20, 2012. Estimates reflect full analyst coverage universe for KKR. Ownership data based on Ipreo surveillance

as of June 20, 2012. Todays unit counts reflect basic units outstanding.

KKR Capitalization($ in millions except stock price)

Stock Price (6-20-2012) $12.74Fully Diluted Shares 701.0

Market Cap $8,931.3Plus: Debt 500.0Less: Cash (855.5)Less: Investments (5,023.0)Less: Net Carried Interest (599.6)

Enterprise Value $2,953.1

2012E ENI per Share $2.252013E ENI per Share $2.20

2012E P/E 5.7x2013E P/E 5.8x

2012E Distribution $0.712013E Distribution $1.01

2012E Dividend Yield 5.6%2013E Dividend Yield 7.9%

Market capitalization: $8.9 bn

Book value per unit: $8.67

Public unitholders: 33.9%

Credit ratings: A- by S&P, A by Fitch


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Culture

TEAMWORKINTEGRITY

RELATIONSHIP-DRIVENACCOUNTABILITY

INNOVATIONEXCELLENCE


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Culture

TEAMWORKINTEGRITY

RELATIONSHIP-DRIVEN

ACCOUNTABILITY

INNOVATION

EXCELLENCE

We pride ourselves on our one - firm approach;

Every person at KKR owns equity and shares inour success

Our reputations as individuals and as a firm are paramount; Our word is our bond

People do business with people they like andtrust; Arrogance kills

We embrace the obligation to speak up andsay what we think; We also have the fortitude

to say no, even at the eleventh hour

We work passionately to retain the

entrepreneurial spirit that created our firm andto fight against politics and bureaucracy

We aspire to be the best at what we do andlead by example; Our focus on impact and

results creates a vibrant and meritocraticenvironment


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Industry Expertise/Sourcing

Comprehensive industry coverage

across global markets in both privateequity and credit

Deep relationships supporting amulti-sector investment approach

Holistic discussions across the capitalstructure

Investment Experience

36-year history of quality investing (1)

35 senior-most private equityinvestment professionals have beenwith KKR for an average of over 13years

26 senior-most asset managementinvestment professionals have anaverage of nearly 17 yearsexperience

KKR Capstone Captive team of ~60 senior

operations professionals

Work side-by-side with portfoliocompany senior managers tohelp identify and implementoperational improvements

KKR Capital Markets

Dedicated resource

Manages all capital marketsactivities for the firm

Assists with capital structures,refinancings, IPOs

Client & Partner Group

Team of ~45 professionalsfocused on building,maintaining, and expandingclient relationships

Delivers solutions to investors

across the KKR platform

Stakeholder Management Integrated into investment

decision and transactionprocesses

Focus on alignment of interestsand sustainability

Share best practices acrossKKRs portfolios

Peopleand

Culture

Why We Are Different

(1) As of May 1, 2012.


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CreditStrategies

KKR Global Business Model

IndustryExpertise

ValueCreation

Capabilities

StakeholderManagement

PrivateEquity

CapitalMarkets

Access toCapital

Client & LPPartnerships

Best In ClassProcesses

Global One-Firm

Platform

People &Values

Network /Relationships Experience

O u r

D i f f e

r e n t i a t o r s

O u r

B u s

i n e s s e s

O u r

I d e n t i t y

Innovation& Flexibility

Mezzanine &Special

SituationsHedge Funds

Infrastructure,Natural

Resources

RealEstate


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KKR Organizational Chart

Kravis/Roberts

GlobalPrivate Equity

(Bae, Huth,Michelson,

Navab)

Global Capital& Asset

Management

(Nuttall)

GlobalInfrastructure/

NaturalResources

(Lipschultz)

Global ChiefAdministrative

Officer

(Fisher)

Global PortfolioManagement

(Raether)

KKR Capstone

Asia/Pacific

(Bookmyer)

Europe/MENA

(Cornog)

NorthAmerica(Nelson)

Industry/Functional/Regional Teams

Europe/MENA(Huth)

NorthAmerica

(Michelson/Navab)

Asia/Pacific(Bae)

Industry/Regional Teams

Management Committee (MC)

Investment Committees (ICs)

Other Governance Committees(e.g. Conflicts, Risk, Balance Sheet)

Public Affairs(Mehlman)

Legal andCompliance

(Sorkin)

Finance(Janetschek)

InformationTechnology(Brandman)

HumanResources(Gottlieb)

Industry/Functional Teams

Note: Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject toapplicable law and inside information barrier policies and procedures, which may limit the involvement of KKR Private Equity, KKR Capital Markets, andKKR Capstone personnel in certain circumstances. Discussions with Senior Advisors and employees of KKRs managed portfolio c ompanies are alsosubject to the inside information barrier p olicies and procedures, which may restrict or limit di scussions and/or collaborations with KAM.

Note: KKR Capstone is owned and controlled by its senior management and not KKR.

Real Estate(Rosenberg)

LeveragedCredit(Falk/

Sheldon)

Mezzanine(Goltz)

SpecialSituations(Weinstein/

Zilkha)

PublicEquities

(Howard)

KKR Credit Strategies(Goltz)

AssetManagement(Sonneborn)

Other:Corporate

Development,New Products)

Client andPartner Group

(Donohoe)

CapitalMarkets

(Farr)

Macro AssetAllocation(McVey)


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2009 2010 2011CAGR

'09-'11

Fee Paying AUM ($B) $43 $46 $46 4.14%

Revenues $618 $735 $912 21%Expenses ($371) ($416) ($495) 15%

Fee Related Earnings $247 $318 $417 30%margin 40% 43% 46%

ENI $1,954 $2,139 $751

Cash Carry, gross $0 $388 $520

Headcount 640 757 879 17%Distribution per share $0.60 $0.74Book Value per share $6.08 $8.38 $8.29 17%

The last 3 years by the numbers

09 - 10 10 - 11

16%

29%31%

18%

We have grownmaterially over time

and have done so in ameasured manner

Fee Related EarningsHeadcount

y / y

c h

a n g

e


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New and expanding businesses have helped fuel this growth

Private Markets

2010

Public Markets

2011

$912

$618

$735

2009

Capital Markets

Revenues by Business Unit($M)

CAGR(09 - 11)

8%

51%

124%


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Weve innovated and diversified our service offering

2009

PrivateMarkets

2011

PublicMarkets

CapitalMarkets

North America PE Asia PE Europe PE

Bank Loans & High Yield

Portfolio Refinancing Syndication

North America PE Asia PE Europe PE China Growth Infrastructure KNR Royalties Real Estate

Bank Loans & High Yield Direct Lending Mezzanine Special Situations KES

Portfolio Refinancing Syndication Equity Underwriting 3 rd Party Business NBFC


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Our business portfolio in 2012 -weve cultivated a pipeline of businesses

2012: Maturity of existing businesses

Nascent Growth Mature

PrivateMarkets

PublicMarkets

CapitalMarkets

Real Estate Drilling Royalties

Public Equities

e.g. Latin America,Credit Hedge

Fund

R&D

Natural Resources

Asia PE

Infrastructure

Mezzanine Special Situations

3 rd Party business NBFC

NA PE Europe PE

Liquid Credit

Portfolio Refinancing

Portfolio Underwriting

China Growth

Equity Syndication

Direct Lending


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Strategic Goals

1. Maximize Performance Across Our Businesses through Intense Focus andan Active Ownership Approach

2. Continue to Evolve Private Equity Business Model and Effectively DeployMeaningful Capital

3. Aggressively Build our non PE Businesses (Fixed Income, Mezzanine,Infrastructure, Special Situations, Natural Resources, Real Estate, HedgeFunds) into Industry Leaders

4. Increase Our Effectiveness at Capital Raising and Expand Our InvestorBase to Drive Meaningful New Capital

5. Leverage KCM to Create Differentiated Access to Capital and EnhanceFirm Profitability

6. Build Liquidity and Diversity on Our Balance Sheet and Employ it toMaximum Strategic Effect

7. Retain Strong Emphasis on People, Culture and Values and OperateEffectively and Efficiently as one Integrated Team


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Strategic Goals









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Its All About Performance

KKR PE Portfolio Performancevs Benchmarks (09 - 11)

KAM Strategy Performance vsBenchmark (3 yr returns)

Note: 3 year performance is as of end of 2011 (12/31/2011); PE performance analysis conducted on samestores basis for investments made prior to Ja nuary 1, 2009 to ensure comparability of analysis (1) Benchmark: S&P/LSTA Loan Index.(2) Benchmark: Merrill Lynch High Yield Master II Index.(3) Benchmark: Merrill Lynch High Yield Master II Index.

OpportunisticCredit

23.7%

32.5%

High YieldCarveout

23.7%

36.0%

SecuredCredit(unlevered)

19.5%20.6%

Benchmark

KAM (Gross Return)

(1) (2) (3)KKR PEPortfolio MSCIWorld

Index

S&P 500

39.6%

48.6%

76.0%


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KKRs Global Macro and Asset Allocation team (GMAA) provides the Firm with marketcommentary and outlooks on the changing dynamics in the global economy

Global Macro and Asset Allocation

The Team The team is led by Henry McVey, who has 24

years of experience evaluating macroeconomictrends and asset allocation topics

Henry McVey, David McNellis and Frances Limwork in partnership with various investment teamsFirm-wide to assist in better decision-making andenhanced performance regarding current andpotential investments

Primary Activities Help KKR and its clients assess global macro

issues and trends across all of its investmentdisciplines, including private equity, hedge fundsand public investing

Provide thought leadership through periodicwritten content that engages employees andclients as it relates to macro trends and assetallocation decisions

Analyze insight into the business environmentfrom data and trends gleaned from KKRs diverseportfolio

Over time, help the Firm build out its global macroand tactical asset allocation capabilities

An archive of GMAAs macroeconomic insights pieces isavailable at http://www.kkrinsights.com

Recent Macroeconomic Insights Pieces

April 8, 2012

March 5, 2012
http://pa.kkr.com/sites/all/modules/civicrm/extern/url.php?u=65&qid=21292http://pa.kkr.com/sites/all/modules/civicrm/extern/url.php?u=65&qid=21292


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Strategic Goals









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Biggest investor in our own funds and deals with ~$5.5 bn invested or committed (2)

Vast global sourcing network

Substantial resources in operations, capital markets,stakeholder management, global macro and assetallocation, plus senior advisors

Use of firm- wide brain to find and act on ideas

3.1x gross MOIC, 26% gross IRR, and 20% net IRR onour eight realized private equity funds (1)

S&P 500 outperformance of 7.4% on a net basis acrossour first 14 private equity funds raised since firmsinception

Private Equity Overview

36 years, 200+ investments, $53+ bn of equity deployed

Highly experienced investment team

Leading

GlobalFranchise

StrongHistoricalReturns

DistinctiveStrategy andResources

Aligned withInvestors

Note: Data as of 3/31/2012. Past performance is no guarantee of future results. See Important Information for details regarding returns and indices.(1) Includes all investments of KKRs eight realized private equity funds from inception to March 31, 2012. The 1996 Fund has two remaining investments with a cost basi s of

$46mm which are valued at $0. It is anticipated that these investments will be written off in 2012. For purposes of this analysis the 1996 Fund is considered fully realized.

(2) Includes ~$4.4 bn of balance sheet capital invested in or committed to our funds and transactions and ~$1.2 bn of personal investments by KKR principals.


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(1) Represents a network of senior executives that work with KKR and KKR portfolio companies.(2) As of May 2012.

DeepIndustry Knowledge

Extensive

Global Network

LeadingReputation & Brand

KKRs Sourcing Capabilities Lead to Differentiated, Proprietary Opportunities

Extensive network developed from the significant experience ofour over 400 executives

~30 Senior Advisors (1) evaluating investment opportunities,serving on the boards of portfolio companies, and providingguidance based on industry and management expertise

In- depth understanding of industries and a corporations capitalstructure

Strong network of industry experts, cultivating government,

company, and management relationships Broadly diversified portfolios across industries and geographies

serve as eyes and ears on emerging industry trends

36 years of investment experience having completed over 200private equity investments with over $465 billion of totalenterprise value, and managing a portfolio of approximately 550 (2) credits and approximately 700 actively tracked credits

Reputation of integrity and excellence creates differentiatedtransaction opportunities

Sourcing Capabilities Across the Platform


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Disciplined and structuredapproach to value creation

Delineates operationalissues to be addressedimmediately afteracquisition

100-Day Plan KKR Capstone

Exclusive relationship Experienced team of senior

operators Focused on results-oriented

execution

Portfolio ManagementCommittee

Allows KKR portfoliocompanies to benefit fromaccumulated experience ofcommittee members

High Quality Resources and Processes Focused on Value Creation

Strategy Development Optimize OrganizationOperational Excellence

Product/market strategies Regional strategies Partnership strategies

Acquisition strategies Positioning for exit

Secure, retain, andincentivize top and middlemanagement

Optimize organizationalstructure Train and motivate broad

employee base

Top-line improvement(e.g., sales force, pricing)

Cost reduction

Working/operational capitalreduction IT master plan R&D master plan

Sustainable Operational Improvement and Added Value

KKR implements a highly structured approach to driving operational improvements

Value Creation in Private Equity


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Businesses face increased attention, regulation and scrutiny from governments andstakeholders around the world. KKR has a dedicated team to navigate these increasinglycomplex issues

Note: The portfolio companies represented are shown as examples of KKRs regulatory and stakeholder engagement and include Nort h American portfolio companies withover $15 million of environmental cost savings. The specific portfolio companies identified are not representative of all of the portfolio companies purchased, soldor recommended for KKR Funds, and it should not be assumed that the investment in the portfolio companies identified was or will be profitable.

* Results based on data reported from 2008 2010.

Regulatory and Stakeholder Engagement

Incorporate relevant stakeholder andregulatory considerations into our businessprocesses

Pre-investment asset selectionDetermine how to improve relevantenvironmental, social and governanceissues as part of due diligenceEvaluate changing regulatory trends likelyto affect industry

Portfolio ManagementShare best practices across our portfolioto seek to improve performance onenvironmental, labor and sustainabilityissuesHelp companies understand changingregulatory environment

Engage with key stakeholders

Focus on alignment of interests and realsustainability

Our efforts must simultaneously make financialsense and benefit stakeholders

Sharing Best Practices Environmental Impact*

$155 mm in avoided energy and fuel costs 386,000 metric tons of GHG emissions avoided 80% recycling efficiency improvement 19 mm cubic yards of waste avoided 345,000 tons of cardboard recycled 80% waste efficiency improvement

$30.6 mm in avoided energy and fuel costs 142,000 metric tons of GHG emissions avoided Improved fleet efficiency by 7% Increased distribution centers energy efficiency by 13%

$22.7 mm in avoided energy costs 6% GHG efficiency improvement 107,000 metric tons of GHG emissions avoided

$17.5 mm in waste costs avoided 35,000 metric tons of GHG emissions avoided 10% energy efficiency improvement 6.3 mm pounds of waste avoided

More information on KKRs Green Portfolio Program isavailable at http://green.kkr.com
http://green.kkr.com/http://green.kkr.com/


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Strategic Goals









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KKR Asset Management (KAM) Overview

KKR launched KAM as its credit investing business in 2004 KAM manages approximately $16.3 billion in assets

KAM has over 100 dedicated employees, including over 60 investment professionals KAMs business model focuses on leveraging the complete intellectual capital of

KKRs more than 800 people, advisors, and 77 PE portfolio companies

Marketable SecuritiesDivision

Alternative InvestmentsDivision

KAM AUM by Strategy (1)

($ in millions)

Bank Loans

High Yield

Bank Loans Plus High Yield

Opportunistic Credit

Mezzanine

Special Situations (Focuson Distressed and RescueFinance)

Long / Short Equity

Direct Lending

Capital Solutions(multi asset-class products spanning all KKR strategies)

KAM Strategies

Separately Managed Accounts

Funds

SpecialSituations

$1,366

Mezzanine$1,412Leveraged

Credit$12,239

Private Markets$919 Equities

Strategies$371

1) Data as of March 31, 2012. Please see Endnotes for important information regarding the calculation of AUM.Note: Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedure s, which may limit the involvement of personnel in certain investment processes and discussions.


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Successful record of developing and growing new businesses

~48% of our management fees for 2011 and 2012 to date are frombusinesses started since 2010

Expansion of the KAM Business

04 - 08: EstablishedPresence, Primarily Liquid

Credit

08 - 10: Built OutDiversified Credit Platform

11 & Beyond: New AssetClasses and Geographies

2008 2009 20112004

San Franciscoteam established

KFN launch

Bank loans & high yield; first

mezzanine investments

2007

New York teamestablished

London teamestablished

Newgeographies

Beyond

Mezzaninelaunch

Specialsituations

launch

Long/shortequitylaunch

Newstrategies

Directlendinglaunch


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KKR Energy and Infrastructure Platform

Infrastructure Private EquityProved, Developed

ProducingProperties

All OtherOpportunities

KKR Energy Platform

Energy Opportunity

Asset AllocationCriterion

Historical KKRTransactions

ColonialPipeline

Eagle FordORRI

TX CrudeFarm-In

Minerals JV

Midstream JV

EBR

East TX, LA and MSAssets

Asset-level investments,with predominance of valuefrom proved developedproducing (PDP) assets

Seek to Generate return viacurrent income

Oil and gas assets of lesserrisk than with developmentopportunities

Asset-level and/orstructured investments

Seek to Generate returnvia current income andcapital appreciation

Investments in goingconcern businesses

Seek to Generate returnvia growth and capitalappreciation

Infrastructure assets andbusinesses with limitedeconomic sensitivity

Investments in goingconcern businesses

Seek to Generate returnvia growth and capitalappreciation

Note: The specific portfolio companies identified are not representative of all of the portfolio companies purchased, sold or recommended for KKRFunds, and it should not be assumed that the investment in the portfolio companies identified were or will be profitable.

Equity Put to Work $550 million $1.3 billion$585 million

SabaInfraestructuras

KKRs Energy & Infrastructure platform manages ~$4 billion in non-private equityrelated assets
http://www.samson.com/index.htmlhttp://www.recurrentenergy.com/


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KKR Real Estate

FinancialStructuring

OperatingCapabilities

Brand

Culture

DifferentiatedSourcing

IndustryVerticals

Senior Advisor /Platform Capabilities

Sourcing Execution

KKRs Real Estate group has 10 investment professionals located in the US and Europe Since launching the business in 2011, KKR has committed ~$155 million of equity to transactions Investing on behalf of both the KKR balance sheet and KFN, the group implements a thematic, bottoms

up and catalyst driven approach Our recently closed and pipeline of exclusively controlled deals illustrate the power of the KKR platform:

KKREdge

RecentlyClosedDeals

European Corporate Credit:Confidential

ExclusivePipeline

NNN PittsburghOffice Building

Resort HotelMezzanine Loan

Build-to-SuitDevelopment

Platform

Shale Oil-Related Housing

Development

In three years, our target is to have a global investment platform with a fully integratedcapital markets capability to effectuate equity and debt raises. Moreover, we intend toacquire or partner with a network of managers to build our independent operating capability


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Prisma is a leading customized hedge fund solutions platform with ~$8 billion in AUMthat KKR has agreed to acquire. The transaction is expected to close in Q4 2012.

Prisma Overview

FamilyOffice/HNW

8%

Other3%

Endowment/Foundation

6%PublicPension &

SWF43%

USCorporate

Pension11%

FinancialInstitution/Insurance

29%

Prisma AUM by Investor Type

SeparateAccount

63%

Commingled Fund

37%

Prisma AUM by Account Type


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Strategic Goals









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The Team Global team of ~45 executives located in 7 offices

across 4 continents and in 7 countries Relationship managers in direct outreach to

clients Product specialists providing specific support

and expertise Junior resources serving in a generalist

capacity Relationship-focused, solutions-oriented approach

Able to deliver customized products

Primary Activities Facilitate client access to products and services

across KKRs platform Apply integrated approach by leveraging all KKR

executives and capabilities globally including:

Industry investment teams expertise KKR Capstones operational best practices KCM market perspectives

Work in partnership with KCM in thesyndication/distribution of product including:

Participation in debt or equity distributions Placement of mezzanine tranches Co-investment opportunities

KKRs Client & Partner Group (CPG) consists of experienced professionals with diversebackgrounds dedicated to developing and servicing KKRs global network of investors andclients

CPG connectsclients to

KKRs platform C

l i e n

tKKR

Client & Partner Group


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We are building a world-class fundraising engine

$9.3B

$5.4B$3.7B

201120102009

Total Capital Raised ($B)

Europe III Infrastructure Mezzanine PE SMA Credit SMA

Key Productsmarketed:

# Investors: 275 345 390

Infrastructure Mezzanine China Growth Oil & Gas KCCP Capital Solutions SMA Energy SMA Credit SMA

Infrastructure Mezzanine Oil & Gas KCCP NAXI KES PE SMA Energy SMA Credit SMA

Note: includes external capital raised only


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Strategic Goals









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Note: KKR Capital Markets LLC is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of FINRA and SIPC. Thecompanies identified above are shown as examples of KCMs transaction experience and represent KCMs largest transactions for KKRs portfoliocompanies (based on transaction size by issuer for each of the categories above) in 2011/2012 and third party

KKR Capital Markets (KCM) was launched in 2006 to facilitate and add expertise aroundinvestment structuring, financing and all capital markets-related issues

The Team Team of ~30 capital markets executives

Expertise in debt, equity, and structuredproducts

Ability to leverage direct relationships withinstitutional investors around the world

Highly integrated approach generatesdifferentiated solutions across KKRsportfolios

Primary Activities

Providing tailored capital markets adviceto portfolio companies, KKR investmentprofessionals and third party

Developing and implementing traditionaland non-traditional capital solutions forinvestments and companies seekingfinancing

Assisting KKR LPs in growing their directinvesting businesses

Structuring and underwriting equity anddebt financing (both public and private)

KKR Capital Markets

Selected Recent Transaction Experience

Public Equity

Public Debt

Private Equity

Private Debt

Third Party Equity

Third Party Debt

Senior Bookrunner on $1.6 billion Follow-onOffering

Joint-Lead Arranger on $3.2 billion Amendment &Extension of Senior Secured Credit Facility

Placement Agent on $1.05 billion Private EquitySyndication

Sole Placement & Syndication Agent on $125million Private High Yield Notes

Sole Placement & Syndication Agent on $85 millionof Equity via Private Placement

Sole Lead Arranger, Bookrunner and SyndicationAgent on $147 million of Senior Secured CreditFacilities


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How KCM Adds Value KCM should be viewed and positioned as our internal experts on all capital structure, financing, hedging and markets

related topics Call KCM early and often for any of these issues and across all businesses before any external advisor is called KCM continues to build direct relationships with key investors and proactively manages relationships with f inancing

groups at major banks Utilizing KCM has strengthened the Firms relationships with providers of capital, adding value to our portfolio and

improving KKRs productivity and profitability

From 2009 to 2012 YTD, KCM has earned more than $322 million in fees associated with KKR portfoliocompany deals fees that would have otherwise been paid to investment banks

Value Add IllustrativeTransaction

Likely OutcomeWithout KCM

KCM Led Outcome

1) Better Access toCapital: Morecapital at a lowercost and with morecertainty

Capsugel More expensivefinancing and lowerreturns

KCM arranged and negotiated the $1.5 bn capitalcommitment on highly attractive terms despitevolatile markets due to the Fukushimaearthquake/tsunami

Attractive execution and pricing relative to othersponsor transactions including covenant-lite andeuro debt commitments

2) Creative andaligned refinancingactivities

EFH andFirst Data

Less coordinatedcommunication withkey accounts

Extensive communication with key debt holdersensuring successful execution of key amend &extend transactions

3) Best execution DollarGeneral

No in -houseadvisory tostrategicallyexecute onmonetization plansover the long-term

KCM worked directly with Dollar Generalmanagement and sponsors since the IPO on therefinancing and monetization strategy, havingexecuted 6 follow-on and 2 debt offerings


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Strategic Goals









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KKRs public listing strengthened alignment of interest with our LPs In our combination with KKR Private Equity Investors, KKR Principals did not

sell any equity but rather we acquired LP interests in our funds held by KPEresulting in KKR and its executives having over $6 billion invested in orcommitted to our own investment funds and portfolio companies

KKR Balance Sheet (1) KKR Principals (2)

Balance SheetInvestments

Unfunded CommitmentsTo Investment Funds

KKR PrincipalsPersonal Investments

KKR TotalExposure

$4.2

$0.6

$1.3 $6.1

Result = We are now our own largest investor

Note: Dollars in billions. Values shown at cost as of March 31, 2012. Numbers may differ due to rounding.(1) KKR executives own approximately 67% of KKR.(2) Investment and commitments made by individual employees and retained by those individuals personally.

Eating Our Own Cooking


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Through our combination with KPE and related public listing,we acquired a significant balance sheet providing us withpermanent capital for our business

Permanent Balance Sheet Capital to Facilitate Growth

General partnercommitments

Seed capital

Capital markets funding

Other organic/inorganicgrowth opportunities

Approximately $5 bn ofbalance sheet capitalinvested in or committedto our funds andtransactions

Permanent Capital toAccelerate Our Growth

Alignment of Interests withOur Limited Partners


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Balance Sheet Highlights

Sizable balance sheet

$6.1 bn of book equity value($8.67/adjusted unit (2) )

$5.0 bn of investments (~50%public securities)

Ample liquidity

$850 mm of cash

$750 mm of available revolvercapacity (3)

Well capitalized and minimalleverage

A- and A ratings from S&P andFitch, both with a stable outlook

$500 mm of senior notes is onlydebt outstanding

(1) Represents KKRs total reportable segment balance sheet. (2) Adjusted units represent the fully diluted unit count using the if-converted method.(3) Excludes $500 mm of undrawn revolver capacity for use in capital markets business.

Balance Sheet as of 3/31/2012 (1)

(in mm, except per unit)Private Equity Funds $1,547Co-Investments 2,656Other Investments 820

Total Investments $5,023

Cash and Cash Equivalents 856Unrealized Carry 600

Other Assets 297

Total Assets $6,775

6.375% Notes due 2020 $500Other Liabilties/Noncontrolling Interests 198

Partners' Capital $6,077

Adjusted Units Outstanding 701.0

Book Value/Adjusted Unit (2) $8.67


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Strategic Goals









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Significant Investment in Human Capital

Headcount increasing most rapidly in new businesses and firminfrastructure to enable profitable and efficient growth

2006 2007 2008 2009 2010 2011 June 2012

Private MarketsPublic Markets

KKR CapstoneClient & Partner GroupCapital MarketsBusiness OperationsStaff

Note: Reflects number of people as of 6/30/2012. KKR Capstone is owned and controlled by its senior management and not KKR.

317

447

595644

757872 912


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Business Operations

Finance Information Technology

Public Affairs

Legal & Compliance

Human Resources

Stakeholder managementacross firm and portfolioPublic communicationsRegulatory expertise

Public company andlimited partner reportingBudgeting, planning,expense management

Enables better decisionsthrough better informationInfrastructure and ITcontrols

Transaction supportRegulatory/complianceconflict managementRisk mitigation

Professional development/training and mobilityPerformance/meritocracyRecruit, hire, integrate

Office OperationsOffice OperationsstandardsEfficiency and scalability,G&A reductionOffice build-outs


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SOX Compliance/Internal Audit

Global Risk Management

SAP/Investran Implementation

Public/Private Wall Management

KKR, CPG, Portfolio, KCM Central

KAM Trading & Risk System

Training Programs & Career Framework

360 and Interview-Based Review Process

Investor Relations

Green Portfolio Program

KKR Website/Rebranding

Procurement/Risk Subject Matter Experts

New SMAs

New offices: Beijing, Mumbai, Houston, etc

Internal External

Other Notable (but less visible) Achievements


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M o n

i t o r i n g

O v e r s

i g h t

Global Governance Structure

Formalized processes and functions in place to manage firm

Global decision-making process Separate committees by strategy

Investment Committees

Monitorinvestmentportfolios acrossthe firmsbusinesses

Portfolio Manage-

ment FunctionIdentifies andmonitors keyrisks to firm

Risk Committee

Reviews balance sheet investmentdecisions

Oversees firm capital structure andliquidity

Balance Sheet Committee

Coordinatequarterlyvaluations

Ensure consistentglobal process

Valuation

Committees

Management Committee

Other firm-level matters

Analyzes andaddresses new/potential conflictsof interest acrossbusinesses

Conflicts

Committee

T r a n s a c

t i o n

O v e r s

i g h t


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Implications of 3 year plan for all of us

Tremendous progress over the last 3 years Our strategy is working

Weve reached the top of the first mountain

2012 is about executing whats on our plate Execution, execution, execution is key

Budget/plan provides roadmap and accountability

Need to constantly look for incremental commercial opportunities (e.g. Samson II)

With just what is on our plate, there is a path to meaningful value creation Requires consistent execution and intense focus on commercial results

Investment performance is key $75B of fee-paying AUM and doubling of our stock price is attainable

And there are multiple breakout opportunities not in the plan that could propel us further Continue to invest in our business

Remain innovative, entrepreneurial, and nimble

As we drive forward, we must maintain our core culture and values and continuously

evolve our organization


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Our Individual Role

Live the Values of KKR

Speak Up! Dont Be Afraid to Offer Your Views and Ideas

Be Mindful of How Your Words and Actions are Perceived All of Us AreAmbassadors for KKR

Understand and Take Ownership for the Strategy and Your SpecificContribution

Embrace and Drive Change Recognize There is No Business asUsual

Build Bridges Across the Firm We are One Integrated Team

Reach Out and Create Internal Relationships Across the Firm

Constantly Ask Yourself, What Can I Do To Leverage the Firms MultipleCapabilities?

Be Creative and Entrepreneurial New Ideas, New Products, NewRelationships Proactively Identify Where You Can Contribute


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Q&A


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Appendix


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Culture

TEAMWORK: We pride ourselves on our one-firm approach, working proactively and collaborativelyacross businesses and geographies to achieve the best possible results. In keeping with this approach,every person at KKR is an owner of our firm and shares in our success.

INTEGRITY: Our word is our bond we say what we mean and we do what we say we will do. As alearning organization, we are self-critical- acknowledging our mistakes and trying always to learn fromthem.

RELATIONSHIP- DRIVEN: KKR is deeply committed to building and sustaining long-term partnerships internally and externally- grounded in trust and transparency. We work hard to understand and alignthe interests of all stakeholders, we treat others as we would like to be treated- with fairness,compassion and respect.

ACCOUNTABILITY: We accept accountability for our actions, inactions and decision, both individuallyand as a firm. KKR embraces the implied responsibilities of our one-firm approach: the obligation tospeak up and say what we think and to respect and listen to those who do the same. We deliver on ourcommitments- to our stakeholders, our partners and to one another.

INNOVATIVE: We question accepted wisdom, creating new ideas and new approaches, and neverresting on our laurels. We are self- starters with a can - do approach and a willingness to take prudentrisks.

EXCELLENCE: We set high standards- each of us as individuals and the firm as whole- and consistentlytry to exceed them. We attract self-motivated, highly capable, results-oriented people and invest heavilyin their development. KKR strives for diversity, recognizing that people with different backgrounds,experiences and perspectives make us a stronger and more effective organization.


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Values BEING HONEST : Always be honest with one another, and honest with anyone we work with outside the

firm. Our integrity is in the end all we really have. We can make all of the money possible, but if we don'thave integrity, we don't have anything.

TREATING EVERYONE HOW YOU WOULD LIKE TO BE TREATED : Be fair and consistent. Be politeand courteous. Show no arrogance towards others.

SHARING OPENLY : Share the results with as broad a group of KKR people as possible.

INSTILL TEAMWORK, AND CHOOSE THE RIGHT PEOPLE to join the team at KKR who are bright,thoughtful, honest, not arrogant, and who believe in the teamwork, not self-promotion.

HIRING SELF-STARTERS who are results oriented, analytical, and who have high intensity, integrity, andbelieve in teamwork.

BEING INNOVATIVE and not afraid to take prudent risks.

INVESTING IN PEOPLE AND IN COMPANIES where we would be proud to have this association.

HAVE THE FORTITUDE TO SAY NO . Even at 11:59 say no if we are uncomfortable about the integrityof our outside partner investing with us, or the management of a target company, or any other conditionsthat could emerge.

RELATIONSHIP BUILDING : It takes many years to build a solid reputation, but only a few minutes todestroy it. Be compassionate and thoughtful toward other people.

OUR WORD IS OUR BOND. OUR REPUTATION AS INDIVIDUALS AND AS KKR IS PARAMOUNT.


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Direct Lending Strategy

Provide financing solutions to middle market companies andsponsors that currently have limited alternatives

- Middle market PE activity is picking up substantially whilefinancing options remain constrained, thereby offeringlenders the opportunity to earn attractive risk-adjustedreturns

- Focus on mid-market companies; EBITDA in the $25-100million range typically

Target a wide global opportunity set including newsponsor deals, direct company financings, and

refinancings of existing sponsor companies KKR approach meets investor need for high current income

while appropriately matching structure of strategy with loanliquidity and maturity

- Targeting double-digit levels of current income

The Team

Managed by the Global Co-heads of Leveraged Creditplatform, Chris Sheldon and Erik Falk

Supported by global team of ~60 credit investment

professionals Integrated network of resources, including Private Equity,

KCM, KKR Capstone and approximately 30 Senior Advisors

KKR Value Proposition Global sourcing

Global network and integrated one firm sourcingcapabilities

Complementary to mezzanine sourcing efforts as KAM cannow provide financing across the capital structure

Diligence Private equity-like diligence supported by credit analysts in

industry verticals aligned with private equity teams Portfolio construction and management

- Intensive regular review of companies/instruments with highattention to governance issues and ability to be an activeinvestor

KKR Capital Markets participation Dedicated group of capital markets professionals who can

source deals, provide insight and help to syndicate largertransactions

Direct Lending Experience KAM has committed / invested in 43 deals representing ~$1.8

billion in direct lending transactions since 2005 Recent KKR secured deals include (1) :

Telx

MSX Education Management Corp. Aercap American Home Mortgage Aspen Dental BNY ConvergEx

KAMs direct lending business leverages the extensive firm -wide sourcing network andallows KAM to partner more broadly with middle market companies and sponsors

Direct Lending

Note: Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject to applicable law and inside informationbarrier policies and procedures, which may limit the involvement of KKR Private Equity, KKR Capital Markets, and KKR C apstone pe rsonnel in certain circumstances and KAMs ability toleverage such integration with KKR. Discussions with Senior Advisors and employees of the Firms managed portfolio companies ar e also subject to the inside information barrierpolicies and procedures, which may restrict or limit discussions and/or collaborations with Public Markets/KAM.

(1) Portfolio companies presented illustrate KAMs experience in sourcing proprietary senior investments from the period January 1, 2010 March 31, 2012. The specific companiesidentified are not representative of all the companies purchased, sold or recommended for clients, and it should not be assumed that an investment in the companies identified was orwill be profitable. Actual holdings will vary for each KAM client and there is no guarantee that a particular KAM clients ac count will hold any or all of the companies listed. The portfoliocompanies presented are not prospective investments KAM contemplated for any KAM fund, vehicle or account. Note: All data as of March 31, 2012.

Eddie Bauer

KeyPoint OnCore Airvana Aspect Asset Acceptance California Pizza Kitchen


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Mezzanine Strategy

Seek opportunities to take advantage of attractivefundamentals identified in the market for mezzaninesecurities

Focus on mid- to large end of the market ($50-150million typical fund commitments)

Target a wide global opportunity set including newsponsor deals, direct company financings, andrefinancings of existing sponsor companies

Aim to capitalize upon significant supply/demandimbalance in mezzanine debt

The Team

Led by three senior mezzanine professionals with extensiveprincipal investing experience and supported by a globalteam of ~60 credit investment professionals

Integrated network of resources, including KKR Capstone

and approximately 30 Senior Advisors

KKR Value Proposition

Global sourcing Global network and integrated one firm sourcing

capabilities Diligence

Private equity-like diligence supported by credit analystsin industry verticals aligned with private equity teams

Portfolio construction and management Intensive regular review of companies/instruments with

high attention to governance issues and ability to be anactive investor

Mezzanine Experience KAM has committed / invested over $1 billion in mezzanine

transactions since 2005 KAMs most recent mezzanine investments include:

Altegrity/Kroll Ambea Capital Safety IMCD J.Jill Genesys Mast Industries

KAMs dedicated mezzanine business is a natural extension of KAMs leading sub -investment grade platform

Maxeda Norcell OpenLink Financial Pets at Home

RBS WorldPay Telx Group, Inc

Note: Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject to applicable law and inside informationbarrier policies and procedures, which may limit the i nvolvement of KKR Private Equity, KKR Capital Markets, and KKR Capstone pe rsonnel in certain circumstances and KAMs abilityto leverage such integration with KKR. Discussions with Senior Advisors and employees of the Firms managed portfolio companies are also subject to the inside information barrierpolicies and procedures, which may restrict or limit discussions and/or collaborations with Public Markets/KAM.

Note: The above mezzanine investments represent all KAMs mezzanine investments from 2010 through March 31, 2012. The specific securities identified are not representative of all ofthe securities purchased, sold or recommended for clients, and it should not be assumed that the investment in the securities identified was or will be profitable. Actual holdingswill vary for each client, and there is no guarantee that a particular clients account will hold any or all of the securitie s listed.

Mezzanine


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Special Situations Strategy

Our approach to special situations is designed to be flexible inorder to allow us to be nimble in capturing dislocations across theglobe

We are focused on directly originated / distressed for controlsituations, where we can create value through insolvency andrestructuring expertise and operational improvements

We seek to identify distressed and dislocated investments whichproduce what we consider to be attractive risk-adjusted returnsacross special situations investments

We focus on capital preservation and downside protection whileseeking to create upside optionality

We look to invest when there is a catalyst in the following wayswhere KKR believes it has a definable edge:

- Rescue Financing / Recapitalization

- Control-Oriented Opportunities

- Secondary Distressed

- Portfolio Purchases

The Team

Managed by the Global Co-heads of Special Situations platform,Jamie Weinstein and Nat Zilkha

Supported by global team of ~60 credit industry investment

professionals Integrated network of firm-wide resources, including PE, KCM,

KKR Capstone and Senior Advisors

KKR Value Proposition, KKR Edge "One-Firm" approach which integrates the private equity, public

investing and operating teams of the firm where it believes it willcreate a tangible "edge" across sourcing, due diligence and valuecreation

Global footprint and local expertise Integrated one firm sourcing capabilities Differentiated approach to diligence, supported by private equity

team and credit industry analysts Strong value creation capabilities through KKR Capstone

KKR Special Situations Performance vs. Comparables

(From 3/1/2010 to 3/31/2012)

Inception-to-date performance vs. benchmark by strategy, as of March31, 2012:

KAMs special situations team pursues investment opportunities primarily in distressedcredit where KKR believes it has a definable edge

Special Situations

21.9%

15.3%

11.3% 10.3%7.0%

1.0%

-5%

0%

5%

10%

15%

20%

25%

KKR SpecialSituations Gross

Hedged IRR

KKR SpecialSituations Net

Hedged IRR

BofA MerrillLynch Global

High Yield CCCand Lower

Rated

MSCI WORLD HennesseeDistressed

Index

HFRX ED:Special

Situations Index

(1) Gross Hedged IRR for these purposes means the aggregate, annual, compound, gross internal rate of return on investments. The aggregate Gross IRR for the Investment Experience is a hypothetical Gross IRR given that the investments includedtherein were not made as part of a single portfolio, but rather by separate funds, vehicles and accounts managed by KAM. Gross IRRs do not reflect management fees, carried interest, taxes, transaction costs in connection with the disposition ofunrealized investments, organizational expenses and other expenses to be borne by investors in the applicable fund, vehicle or account, which will reduce returns and in the aggregate are expected to be substantial. A general summary of such feesand carried interest is included in Part 2A of Form ADV maintained by KAM, a copy of which will be furnished upon request. Past performance does not guarantee future results. The Composite may invest in below investment grade or unrated debtinstruments, which are generally subject to more credit risk and a greater risk of loss of principal and interest than higher rated debt instruments.

(2) Net Hedged IRR" is consistent with the definition of Gross Hedged IRR, but is also inclusive of management fees, the effect of foreign exchange derivative contracts, carried interest, organizational costs and other fund expenses.Note: Market indices for BofA Merrill Lynch Global High Yield CCC and Lower Rated, MSCI World, Hennessee Distressed Index, and HFRX ED: Special Situations Index (collectively, the Indices) included dividends reinvested. The market index returns

assume that on the day a portfolio investment is made, a hypothetical investment in a matching amount i s made in the given index. For each date on which either a portion or all of the portfolio investment is sold, a hypothetical index multiple(factor) is calculated by comparing the change in index value between the two dates. The cost of the investment sold (or portion of cost sold) is multiplied by this factor, resulting in a hypothetical index value. The return is calculated using thesedates of investment and hypothetical value(s) generated. Broad based securities indices are unmanaged and are not subject to fees and expenses typically associated with managed accounts or investment funds. Investments cannot be madedirectly in an index. The Indices are shown for infor mational purposes only. The performance of the Indices represent unmanaged, passive buy-and-hold strategies, and investment characteristics that differ materially from any KKR funds or otherclient accounts, and an investment in a fund is not comparable to an investment in any of the Indices or in the securities that comprise the Indices. The risk/return profile of each of the Indices is also materially different from that of any KKR fund.Further, the Indices are not used or selected by KKR as an appropriate benchmark to compare relative to the performance of any KKR fund, but rather they are included herein solely because they are well-known and widely recognized indices.Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject to applicable law and inside information barrier policies and procedures, which may limit the involvement ofsuch personnel in certain circumstances and KAMs ability to leverage such integration with KKR. Discussions with Senior Advisors and employees of the Firms managed portfolio companies are also subject to the inside information barrier policiesand procedures, which may restrict or limit discussions and/or collaborations with Public Markets/KAM.

(1) (2)


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Long / Short Equity Strategy

Predominant focus on long/short equity strategy

Investment process driven by fundamental research and a one - team collaboration honed over 15 years as part ofGoldman Sachs Principal Strategies (GSPS)

Flexible geographic approach with a primary focus on theU.S. and an ability to make opportunistic allocations toCanada and Latin America (targeted Latin Americaexposure: 0 25%) (1)

Emphasis on relatively liquid large- and mid-cap stocks; noprivate side-pockets

Investment approach consistent with former experience

The Team

Led by Robert Howard, former Head of GSPS Americas

16 years of financial markets experience, including11 years of portfolio management expertise

Continuity of 11-person core investment team that workedtogether in GSPS Americas

A highly experienced and cohesive team situated within KAMs platform that employs adistinctive position-level hedging philosophy and collaborative investment process whileseeking additional alpha through leveraging KKRs proprietary intellectual capital

KKR Equity Strategies

Investment Approach

Top-down, research-driven industry overlay supplements abottom-up, in-depth fundamental analysis performed onindividual companies

Disciplined investment process includes structured weeklyand monthly team meetings, timely and thoroughdocumentation of each material investment decision aswell as active informal intra-team communication

Position-level hedging approach may enable expandedsources of investment opportunities and additional alpha inhedging

Generally 15 to 30 core positions that typically represent75% of the portfolio

Integration with KKR, including access to KKRs globalsourcing and knowledge network (2)

Disciplined Risk Management

Disciplined portfolio hedging and rigorous riskmanagement on both the individual position level andaggregate portfolio level

Continuity and integration of previous risk managementapproach from GSPS into KKRs existing risk organization

(1) The estimates provided herein, including target allocations, caps, and exposures, are subject to change. There is no assurance that these estimates will be achieved, and actualallocations, caps, exposures, and other estimates may be significantly different than that shown here.(2) Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject to applicable law and inside information barrierpolicies and procedures, which may limit the i nvolvement of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in certain circumstances and KES ability to leverage suchintegration with KKR. Discussions with Senior Advisors and employees of KKRs managed portfolio companies are also subject t o the inside information barrier policies and procedures,which may restrict or limit discussions and/or collaborations with KAM.


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Global Portfolio Overview

77 currently held portfolio companies with more than $210billion of annual revenues and over 900,000 employees Select examples across global portfolio include:

KKR has a 36-year track record of quality private equity investing having completed over200 transactions with over $465 billion of total enterprise value in 25 industries

KKR PE CompositeOutperformanceon Net Returns

The Strategy

Seek out companies with strong business franchises,attractive growth prospects, defensible market positions,and the ability to generate attractive risk-adjustedreturns

Focus on where we believe the value of the business canbe enhanced through our active involvement

The Team Global team of ~150 investment professionals Regionally focused and aligned by industry sector

Private Equity

$34.3

$72.0

Unrealized Value

Realized Value

~2.0x

Private Equity Composite Track Record

As of March 31, 2012, $ in billions

Note: The specific portfolio companies identified are not representative of all of the portfolio companies purchased, sold or recommended for KKR Funds, and it should not be assumed that the investment in the portfoliocompanies identified were or will be profitable. The companies identified above are shown as examples of KKRs investments i n i ts private equity portfolio and represent KKRs largest active investments (based onKKRs commitment size) in North America, Europe, and Asia. These examples would not necessarily correlate with the performan ce of any KKR fund or strategy. Past performance is no guarantee of future results.See Important Information for how our performance is calculated, details regarding indices presented as benchmarks and the calculation of Assets under Management. Date of inception is April 7, 1977.

(1) The KKR gross IRR, net IRR, and market indices are calculated based on our first 14 private equity funds which represent all of our private equity funds that have invested for at least 36 months prior to March 31,2012. Neither the E2 Investors or China Growth Fund had been investing for at least 36 months as of March 31, 2012. We have therefore not calculated gross IRRs and net IRRs with respect to those funds.

KKR Overall Private Equity Composite Returns (1)

From inception to March 31, 2012

$53.4

$106.3

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

AmountInvested

Total Value

KKR PE CompositeGross IRR

25.7%

KKR PE CompositeNet IRR19.0%

S&P 50011.6%

Russell 300011.2%

S&P 5007.4%

Russell 30007.8%

0.0%

10.0%

20.0%

30.0%
http://www.inaer.com/homehttp://www.nxp.com/http://www.avagotech.com/


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Infrastructure

The Investment Opportunity Massive and growing global demand for infrastructure

capital vastly exceeds governmental and othertraditional sources of supply of capital

Infrastructure assets can bring crucial benefits to aninvestment portfolio such as inflation protection, yield,long duration, and insulation from economic and marketvolatility

Infrastructure Strategy Value-added investment strategy consisting of three

critical components: Disciplined investment selection Deep operational engagement Active stakeholder management

Target infrastructure assets with limited commercial,financial, and operating risk

Focus on utilities, midstream and contracted energy,

and select transportation sub-sectors Target leading companies, high quality assets, andstrong management teams

Seek majority ownership/control positions, focusedon brownfield with opportunity for value-add

The KKR Team Global team combining skills across private equity,

operations, and the consulting/advisory sectors Six senior investment professionals with significant

experience in investing and operating infrastructureassets

Supported by a platform of:Ten junior investment professionalsFour Senior Advisors with deep relationshipnetworks, operating/management knowledge,and experience across multiple infrastructuresectorsFull complement of KKR resources

Infrastructure Experience KKR has a decade of experience investing in and exiting

infrastructure related assets Strong investment record in North America and Europe

and investment experience in North America, Europe, andAsia through a total of fifteen infrastructure andinfrastructure-related investments over the last decade

History of value creation through active management 12% average annual EBITDA growth for realized

infrastructure investments since inception (1)

(1) Average annual EBITDA growth calculation represents the arithmetic average across realized investments for EBITDA growth between the time of investment entry and exit.

KKRs differentiated investment strategy, high quality team, and infrastructureexperience together with the KKR institutional platform creates a specializedinfrastructure product offering

l


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KKR expects there to be a number of compellingopportunities to acquire conventional oil and gas assets

Producers shifting focus to unconventional developmentactivities, which require tremendous amounts of capitalinvestment

At the same time, the oil and gas industry is facingbalance sheet and funding challenges driven by thecommodity price environment

Producers are seeking to sell conventional assets to meettheir funding needs

Deal team comprised of 22 investment professionals withsignificant energy and oil and gas investing experience

Very strong relationships with both Majors andIndependents

Executive suite-level relationships Two Senior Advisors with CEO experience at leading

energy firms KKR plans to focus on investment sourcing, acquisition

execution, capital allocation decisions, and financing

KKRs partnership with Premier Natural Resources (PNR) marries KKRs investmentexpertise, industry knowledge and sourcing advantages with PNRs operating experienceand execution skills to acquire conventional oil- and gas-producing assets in North

AmericaThe Investment Opportunity The Market Opportunity

The KKR Investment Team The PNR Operating Team

Comprised of a subset of the former employees of VintagePetroleum

Operations and technical expertise with core competenciesin:

Identifying/diligencing acquisitions Optimizing operations/properties

PNR will drive technical due diligence and be responsiblefor operations and incremental value creation through theexploitation of assets post-acquisition

Aim to acquire non-core producing oil and gas propertieswith significant proved component

Attempt to improve production and operationalperformance in order to develop low-risk proved reservesin a cost-effective manner

Employ modest leverage/hedging Seek to realize value through production and distribute

excess cash flow to investors through periodicdistributions

Note: As of March 31, 2012 unless otherwise noted.

Natural Resources



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* Denotes Committee Chairman.

Current members of the Management Committee:

Henry Kravis Member, KKR George Roberts Member, KKR

Paul Raether Member, KKR

Mike Michelson Member, KKR

Todd Fisher Member, KKR*

Alex Navab Member, KKR

Johannes Huth Member, KKR

Joe Bae Member, KKR

David Sorkin Member, KKR

Scott Nuttall Member, KKR

Marc Lipschultz Member, KKR

Bill Janetschek Member, KKR

Craig Farr Member, KKR

Bill Sonneborn Member, KKR

Regional Private Equity Investment Committees


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Regional Private Equity Investment Committees

Note: As of March 2012. China Growth Fund IC Members include Henry Kravis - Member, George Roberts - Member, Joe Ba e Member, David Liu Member, and Ming Lu Member

Current Members of theNorth American IC:

Current Members of theEuropean IC:

Current Members of theAsian IC:

Henry Kravis Member, KKR

George Roberts Member, KKR

Paul Raether Member, KKR


Johannes Huth Member & Co-Chairman of IC, KKR

Todd Fisher Member, KKR

Alex Navab Member & Co-Chairman of IC, KKR

Mike Calbert Member, KKR







Brian Carroll - Member, KKR

Dominic Murphy Member, KKR







Joe Bae Member, KKR

David Liu Member, KKR

Ming Lu Member, KKR

There remains strong consistency in membership across each of theregional committees as shown by the shaded names above

The Private Equity Investment Committee (IC) is the main decision making forum for all newprivate equity investments

The Portfolio Management Committee (PMC) instills discipline in the process of building value inour private equity portfolio companies and acts as an early warning system to identify problemsand then address them

Regional Private Equity Portfolio Management Committees


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Current Members of theNorth American PMC:

Current Members of theEuropean PMC:

Current Members of theAsian PMC:


George Roberts

Member, KKR

Paul Raether Member & Chairman ofPMC, KKR


Alex N