Client and Partner Group Overview

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(1)KKR Client & Partner Group Overview Suzanne O. Donohoe July 20, 2012. CONFIDENTIAL.

(2) Who Are We? Established in 1976, Kohlberg Kravis Roberts & Co. L.P. (“KKR”) is a leading global investment firm with industry-leading investment experience, in-depth industry knowledge, sophisticated processes for growing and improving businesses, and a strong culture committed to teamwork.  Leading investment firm Private Equity, Infrastructure & Natural Resources, Credit Strategies, Alternative Credit, Equity Strategies. Assets Under Management As of March 31, 2012 ($ in billions).  Global presence Offices in 14 major cities in 9 countries across 4 continents.  “One-firm” culture that evolves, learns, and innovates Adaptive to change. . $16.3. Relationship-driven approach Sourcing investment opportunities Partnering with clients. $46.0.  Aligned with our partners “Eat our own cooking” Economic incentives driven by results Focused on managing stakeholder interests. 2. Private Markets. Public Markets.

(3) Client and Partner Group Overview. 3.

(4) Client and Partner Group (“CPG”) Summary ●. Since 2005, KKR has raised over $44.5 billion. ●. Current fundraises include: North America Fund XI, Asian Fund II, Energy Income and Growth, Special Situations, Corporate Credit Partners, Lending Partners, and Equity Strategies, in addition to ongoing SMA work. ●. CPG, working closely with KKR Capital Markets, is active in numerous situations including refinancings, potential IPOs, and syndication processes. ●. Through CPG, we have fundamentally changed the way KKR does business with our clients and prospects. ●. 4. −. We are focused on creating lasting “partnerships” in which relationships are managed continuously – moving away from the episodic fundraise model. −. How we distribute products and raise capital is becoming a clear differentiator for KKR. CPG’s long-term goal is to diversify KKR’s client base to include new investors, across all regions and institution types, and to raise capital for the firm’s expanding product platform.

(5) KKR’s Investment Options and Capabilities KKR Private Equity, Infrastructure, Natural Resources. KKR Capstone. Bank Loans Plus High Yield. Global Private Equity. (KKR 2006 Fund and KKR North America Fund XI(1)). European Private Equity (KKR European Fund III and KKR E2 Investors). Asian Private Equity. (KKR Asian Fund, KKR Asian Fund II(1) and KKR China Growth Fund). Global Infrastructure (KKR Global Infrastructure Investors). (KKR Corporate Credit Partners(1)). KKR Capital Markets (“KCM”). Energy Income and Growth Customized Portfolio Solutions(1) Separately Managed Accounts(1) (1). 5. Bank Loans(1) High Yield(1). Client & Partner Group (“CPG”). Opportunistic Credit(1) Direct Lending. (KKR Lending Partners(1)). Natural Resources. (KKR Natural Resources Fund). KKR Asset Management (“KAM”), Public Equity, Credit & Mezzanine. Stakeholder Management. Mezzanine. (KKR Mezzanine Partners). Special Situations. (KKR Special Situations Fund L.P.(1)). Global Macro & Asset Allocation. Indicates Fund actively fundraising or strategy available as a separate account.. Public Equity. (KKR Equity Strategies(1)). Separately Managed Accounts(1).

(6) Three Years Ago… • We had a handful of people selling (full or part time). • Relative to our peers, we had a small number of LPs/clients • We sold only PE products and did so episodically • Along with our industry, we received low marks for transparency and servicing. $16 KKR PE Capital…. $12. $8. $4. $0 2000 PE Market Share 2% %. 2001. 2002. 2003. 3%. 3%. 5%. 2004. 2005. 2006. 2007. 2008. 0%. 4%. 7%. 2%. 3%. And we knew the world was changing dramatically… 6.

(7) Our Strategic Assessment Back Then… • Far too few people selling given the firm’s ambitions • Our focus became: – Upgrading in some cases – Hiring more salespeople and senior product expertise – Creating a regional focus and accountability for each person – Developing product management functions and disciplines – Doing it with the proper leverage and support to ensure sales effort was as effective as possible. 7.

(8) CPG Structure.

(9) KKR Organizational Chart – Where Does CPG Fit In? • Management Committee (MC). Kravis/Roberts. • Investment Committees (ICs) • Other Governance Committees (e.g. Conflicts, Risk, Balance Sheet). Global Infrastructure/ Natural Resources. Global Capital & Asset Management (Nuttall). Global Private Equity. Global Portfolio Management. (Lipschultz). Global Chief Administrative Officer. (Bae, Huth, Michelson, Navab). (Raether). (Fisher). KKR Capstone. Asset Management (Sonneborn). Leveraged Credit (Falk/ Sheldon). Client and Partner Group (Donohoe). Mezzanine (Goltz). Capital Markets (Farr). Special Situations (Weinstein/ Zilkha). Industry/Functional Teams. 9. Public Equities (Howard). North America (Nelson). Europe/ MENA (Cornog). Asia/ Pacific (Bookmyer). Industry/Functional/ Regional Teams. Public Affairs (Mehlman). Legal and Compliance (Sorkin). North America (Michelson/ Navab). Europe/ MENA (Huth). Asia/ Pacific (Bae). Industry/Regional Teams. Finance (Janetschek). Information Technology (Brandman). Human Resources (Gottlieb).

(10) CPG’s Current Structure Ford Fraker Sr. Advisor, ME. Asia Clifford Chiu. Middle East Kaveh Samie. Europe Alex Fletcher. Rex Chung. Sales Support. Stanley Ho. Amine Habiballah. Chloe Lavedrine. Lucy Liu Masaki Sugita Tina Xiong Nobuaki Miyatake. Client & Partner Group. Ruud Hendriks Sr. Advisor, Europe. Jurcell Virginia Doug Watt Winnie Wutte. Lew Eisenberg Sr. Advisor, HNW. Suzanne Donohoe. North America Amy Lesch. Private Markets Product Specialists Alisa Wood. Tony Hass. Private Equity –. Ari Barkan. Alisa Wood / Amy Stuart. Dan McLaughlin Janice Roberts JB Kiley. Sales Support. John Morrison. James Marsh. Lesley Nurse. Sales Support. Dan Parant. Gaurav Singh. Mariko Uyeda (PT) Sales Support Jackie Barrett Jessica Polkow Ralph DeBernardo. Infra & Oil & Gas – Henry Hager. Public Markets Product Specialists Leveraged Credit & Special Sits – Lynette Vanderwarker Special Situations - Jessica Siebel(PT) Equity Strategies – John Massad Mezzanine – Amy Lesch (PT) / Mariko Uyeda (PT) Product Support Christina Fang Wilson Tong Nicole Fay. Global Shared Services Alisa Wood Event Planning & Client Services – Annette Guarnaccio & Kate de Mul BDS – Beth Hammond GSD – Amy Stuart Product Support Sharon Yang Brandon Donnenfeld Monica Davis Sean Nelson Tiffany Yu BDS - Support Katie Hotze Ryan Carlson. Event Planning / Client Services Lusha Roy, Linda Baath, Melanie Grigonis, Kathleen Haber, Maura McCabe, Gena Vacanti. Note:. 10. As of June 2012.. High Net Worth Jim Burns Rick Moreno Zachary Pack Jeff Schachter Sales Support Conway Bate. Advisory Efforts/ Customized PE Portfolio Solutions Saleena Goel.

(11) In Line with the Firm’s Ambitions, What We Sell has Evolved Number of Products Offered by Year 16 Funds. 14. SMAs / Other. 12. ? 10 8. 4 4. 6 4 1. 2 0. 11. 9. 2. 1. 1. 1. 1. 2002. 2003. 2004. 2005. 3. 3. 2006. 2007. 2 2008. 5. 6. 3 2009. 2010. 2011. 2012 Target.

(12) CPG Model. 12.

(13) Three Main Areas of Focus. 1) Open New Relationships. 2) Cross Sell Into Existing Relationships. 3) Maintain Existing Clients. 13.

(14) Primary Activities ●. Facilitate client access to products and services across KKR’s platform. ●. Apply integrated approach by leveraging all KKR executives and capabilities globally including: − Industry investment teams’ expertise − KKR Capstone’s operational best practices − KCM market perspectives. ●. Work in partnership with KCM in the syndication/distribution of products including: − Participation in debt or equity distributions − Placement of mezzanine tranches − Co-investment opportunities. 14.

(15) CPG’s Coverage Model ●. The CPG Team’s goal is to have one multi-layered team distributing all products globally. ●. Team-wide collaboration on LP relationships will help us determine the best way to be a solutions provider to each of our clients. ●. We do not view our ideal model as “episodic,” but rather as constant Client. Relationship Managers maintain relationships and serve as first touch-points with clients. Relationship Manager and Relevant Member/MD/Director. Members, MDs, and Directors are involved with certain relationships to provide further resources/depth. Industry Expert. Product Specialists and Industry Experts join meetings for deeper diligence and to build client comfort around product offerings. 15.  Prepares presentations, PPMs, diligence requests, etc.. Sales Support serves as a team of Associates/Analysts dedicated to assisting RMs with territory management, client support and monitoring. Associate/Analysts Product Specialist. GSD / Product Support serves as a central team of Associates/Analysts dedicated to assisting Product Specialists and the RMs with productspecific capital raising efforts.

(16) Our Client Base and Opportunities for Growth. 16.

(17) The Vast Opportunity in Front of KKR ●. The market opportunity is vast for KKR. ●. $33.6 trillion in institutional investable assets globally, even if addressable market globally is only 3% of that or $1 trillion, we have much room to run(1). ●. We have a number of competitive advantages that should help us to penetrate this opportunity set…. ●. −. We have a strong brand associated with intellect, wealth creation, and powerful relationships. −. We have talented and motivated professionals incentivized to succeed. −. We have a willingness to invest in the future. −. We are capable of being “Liked & Trusted”. …with the proper investment of time and resources. (1) The total is taken from BCG 2011 Global Asset Management Report, inclusive of all institutional assets including banks and financial services.. 17.

(18) Current Situation – Our LPs ●. Our current LP/client base is concentrated and North America-focused (1) − Less than 420 LPs/clients of the firm in total. Investor Base by Type. Family Office/HNW 6%. Fund of Funds 8%. Endowment / Foundation 1%. Middle East 5%. Asia Pacific 21%. Financial Institution/ Insurance 20%. C orporate Pension 3%. 18. Investor Base by Geography. Public Pension Agency/ Sovereign Wealth Fund/Other Governmental 62%. North America 60% Europe 14%.

(19) What Trends Our Clients Are Thinking About • Low-return and High-volatility environment  focus on alternatives • Global Macro investing environment and European stability • Emphasis on diversification of asset classes • Concern over conflicts/transparency • Growth and diversification of sovereign wealth funds/other government entities • Flight to quality managers and brands post-crisis • Investors’ desire to leverage and scale relationships. 19.

(20) Realizing Our Cross-Sell Potential. ●. Large opportunity to bring existing investors into other products on the KKR platform. 2011. 1.5(1) average mandates per investor(2). (1) (2). 20. 2012. 2013. 2014. 2015. 2016. 2.0 target average mandates per investor. Data as of December 31, 2011. Defines successor funds in a particular geography as same strategy, but new geographies, new asset classes, or new strategies as cross-sell..

(21) Growing Our Investor Franchise. Average New Mandates per Year. Investors/Mandates as of January 1, 2012. New Investors. Existing Investors. 2016 Aspirational Target Mandates. 21. ~350 x 1.5. 500-525. First Year: What We Delivered. ~35/year over five years. 175. 45. ~50-60/year over five years. 250-300. 80. ~1,000. ~625.

(22) Industry Flows into Illiquid Assets have been Highly Cyclical… Buyout $600. Distressed Debt Fund of Funds Infrastructure. $ in billions. $500. Mezzanine Other Real Estate. $400. Special Situations Venture. $300. $200. $100. $2000. 22. 2001. 2002. 2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011.

(23) …and the Buyout Market Even More So… $250. $239. $235. $220 Buyout Capital Raised. $ in billions. $200. $150. $141. $109 $100. $95 $76 $57. $69. $62. $50. $71. $44. $2000. 23. 2001. 2002. 2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011.

(24) Which is a Major Reason to Diversify Our Business…. ($ in billions). Buyout. Pre 2009. 2009 - 2011. 2012 + Beyond. Global AUM. Global AUM. Global AUM. 1.6%. $912. 1.6%. $912. Mezzanine. 0.1%. $68. 0.1%. $68. Infrastructure. 0.3%. $170. 0.3%. $170. Leveraged Credit. 3.5%. $2,000. 3.5%. $2,000. Hedge Funds. 2.8%. $1,581. 2.8%. $1,581. Distressed PE. 0.3%. $146. Real Estate. 0.5%. $274. 9%. $56,407. Total Penetration 24. 1.6%. 1.6%. $912. $56,407. 8.3%. $56,407.

(25) Our Market Share Seems to be Growing 2006 Fund (Vintage 2006), Asian Fund (Vintage 2007). $16. KKR Buyout Capital Raised & Market Share %. $ in billions. $12. European Fund II (Vintage 2005). European Fund III (Vintage 2008). $8. NA Fund XI (Vintage 2011). Annex Fund (Vintage 2009). Millennium Fund (Vintage 2002). China Growth (Vintage 2010). $4. 3%. 5%. 4%. 4%. 4%. 9%. $0 2000. 25. 2001. 2002. 2003. 2004. 2005. 2006. 2007. 2008. 2009. 2010. 2011.

(26) We are Working on a Lot This Year… • Targeting gross sales of $10 billion in Fee Paying AUM across all investment areas, including:.  65% to Private Equity.  10% to Real Assets.  25% to Public Markets. 2012 Product Set. First Close Completed NA XI Direct Lending Infrastructure Natural Resources Asia II. 26. Incubating & Seeding Working Towards First Closes. Continuously Marketing. Real Estate. Special Situations. Liquid & Opportunistic Credit Strategies. Energy Income & Growth. KES. Long/Short Credit. CPS.

(27) Opportunities to Grow Over the Medium Term… Only one scaled business and ~420 clients! 1) Under-tapped markets and channels 2) Broader set of products. 3) Holistic solutions-based partnerships 4) Capital markets prowess 5) Morphing our brand from “mega buyouts only” to “broad alternatives provider”. 27.

(28) Where are we spending our time?. 28.

(29) YTD Activity Metrics ●. Team has held over 2,623 meetings in 2012 YTD(1). ●. A monthly average of 22.7 meetings or scheduled calls per RM(2). Meetings by Region. Meetings by Strategy. % of YTD Meetings by Region. % of YTD Meetings by Product Type. Asia / Australia 26%. EMEA, 22%. Other 19%. Private Equity, Private 41% Equity. North America, North America 48% 52%. Asia, 30%. Europe / Middle East 22%. (1) (2). 29. 45%. Private Markets 7%. 10%. KAM 29%. As of June 2012. Applies an estimated weighting to CPG members with other non-RM related responsibilities (e.g. Management).. KAM, 17%.

(30) CPG Mandate Summary — YTD as of June 2012 Mandate Summary Awarded / Not Yet Funded(1)(3) Number Amount ($mm). Signed / Funded (2)(3) Number Amount ($mm). Total Amount ($mm). This Week(4). 0. 0. 0. 0. 0. This Month(4). 5. 100. 25. 2537. 2,637. 16. 589. 90. 3,887. 4,476. This Year. Meeting Summary Month to Date (6/1/12 - 6/29/12) - Total CPG meetings:. 384. Of which, meetings with existing investors:. 186. Of which, meetings with prospects:. 177. Of which, meetings with consultants: Year to Date (1/1/12 - 6/29/12) - Total CPG meetings:. 21 2,798. Of which, meetings with existing investors:. 1,363. Of which, meetings with prospects:. 1,226. Of which, meetings with consultants:. 209. (1) Verbal commitments, but still working through legal documentation. (2) Signed commitments on which we have begun to earn fees, where we charge on invested capital or where documentation is complete and investment team can allocate to a deal at any moment. (3) Does not include co-investments which do not charge Management Fees (Transaction & Monitoring Fee Only or "T&M Fee"). (4) Does not include HNW commitments. (5) Mercer acted as the consultant for 1 HNW mandate totaling $25mm to KES.. 30.

(31) Capital Raising Momentum and 2H’12 Game Plan ●. Final close on the Global Infrastructure Fund and the Natural Resources Fund (occurred on May 31st, 2012). ●. First close for the Special Situations Fund (currently anticipated in September 2012) and the Energy Income and Growth Fund (timing TBD). ●. Interim closes on North America Fund XI Fund, Asian Fund II and Lending Partners. ●. Continue to focus on raising capital for continuously offered KAM strategies (KES, Corporate Credit Partners and SMAs). ●. Initial Integration of Prisma Capital Partners. 31.

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