Asset Management Overview

KKR Asset Management
Bill Sonneborn
Bob Howard
Erik Falk
July 17, 2012
CONFIDENTIAL AND PROPRIETARY

For One-on-One Use by
Investment Professionals Only
IMPORTANT INFORMATION
This presentation is furnished on a confidential basis exclusively to the named recipient to this presentation (the Recipient) and is not for redistribution or public use.
The data and information presented are for informational purposes only. The information contained herein should be treated in a confidential 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 prior written consent of KKR Asset Management LLC
(KAM). By accepting this material, the Recipient agrees not to distribute or provide this information to any other person.
The information in this presentation is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. The information
in this presentation has been developed internally and/or obtained from sources believed to be reliable; however, KAM does not guarantee the accuracy, adequacy or
completeness of such information. Nothing contained herein constitutes investment, legal, tax or other advice nor is it to be relied on in making an investment or
other decision. This presentation 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 any
investment strategy.
The information in this presentation may contain projections or other forward-looking statements regarding future events, targets or expectations regarding the strategies
described herein, and is only current as of the date indicated. There is no assurance that such events or targets will be achieved, and may be significantly different from
that shown here. The information in this presentation, including statements concerning financial market trends, is based on current market conditions, which will fluctuate
and may be superseded by subsequent market events or for other reasons. KAM assumes no duty to, and does not undertake to update forward looking statements.
Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public investment process is subject to applicable law and inside information
barrier policies and procedures, which may limit the involvement of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in certain circumstances and
KAMs ability to leverage such integration with KKR. Discussions with Senior Advisors and employees of KKRs managed portfolio companies are also subject to the inside
information barrier policies and procedures, which may restrict or limit discussions and/or collaborations with KAM.
References to KKR Capstone or Capstone are to all or any of Capstone Consulting LLC, Capstone Europe Limited, and KKR Capstone Asia Limited, each of which is
owned and controlled by their senior management and not by KKR. KKR Capstone uses the KKR name under license from KKR. KKR Capstone is not a subsidiary or
other affiliate of KKR.
TABLE OF CONTENTS
KAM Overview
Bill Sonneborn
II
II
Erik Falk
Credit Platforms
1. Leveraged Credit Platform
2. Direct Lending Platform
3. Mezzanine Platform
4. Special Situations Platform
III
III
Direct Hedge Fund Strategy

1. KKR Credit Relative Value
2. KKR Equity Strategies
Erik Falk / Bob Howard
I. KAM Overview
KKR BUSINESS PLATFORM
Private Markets
($46.0bn AUM)
Private
Equity
Public Markets / KAM

($16.3bn AUM)
Real
Assets
Stakeholder
Management
Marketable
Securities
Division(1)
KKR
Capstone
Capital Markets & Principal Activities
Alternative
Investments
Division
Senior Advisors
Integrated investment
Team of ~60 senior
and transaction processes
operations professionals
~30 senior industry

experts
Share best practices

across KKRs portfolios
Provides global network

of industry insights
and contacts
Work side-by-side with

portfolio company senior
managers on operational
improvements
Client and Partner

Group (CPG)
Team of ~45
professionals focused
on building, maintaining
and expanding
client relationships
Note: As of March 31, 2012. Please see Endnotes for important information regarding the calculation of AUM. Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedures, which
may limit the involvement of personnel in certain investment processes and discussions.
(1)
AUM for the Marketable Securities Division includes non-fee paying AUM. The Marketable Securities Division of KAM claims compliance with GIPS.
KKR ASSET MANAGEMENT (KAM) OVERVIEW

KKR launched KAM as its credit investing business in 2004. Focused on leveraging the intellectual capital of KKRs more than 800
people, advisors, and 77 PE portfolio companies, KAM currently manages approximately $16.3 billion in assets with over 100 dedicated
employees, including ~60 investment professionals
KAM Strategies
Marketable Securities
Division
Private Markets
$919
Equities
Strategies
$371
Alternative Investments
Division
Bank Loans
Mezzanine
High Yield
Special Situations (Focus

on Distressed and Rescue
Finance)
Bank Loans Plus High Yield

Opportunistic Credit
KAM AUM by Strategy(1)
Special
Situations
$1,366
Long / Short Equity

Long / Short Credit
Direct Lending
Leveraged
Credit
$12,239
Funds
Separately Managed Accounts
Capital Solutions
(multi asset-class products spanning all KKR strategies)
($ in millions)
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 procedures, which may limit the involvement of personnel in certain investment processes and discussions.
Mezzanine
$1,412
KAM INVESTMENT TEAM STRUCTURE

The KAM team has ~60 dedicated equity and credit professionals with the 19 senior-most investment professionals averaging nearly
15 years of experience and ability to leverage deep resources
Investment
Committee
Leveraged
Credit
Direct
Lending
Distressed /
Special
Situations
Mezzanine
Equities
Industry Analysts
Execution Team
Risk & Trading
KKR Private Equity

Industry Groups
~30 KKR Capital
Markets Professionals
~60 KKR
Capstone Professionals
~30 KKR
Senior Advisors
KKR Public Affairs, IT, Legal / Compliance, etc.
SENIOR INVESTMENT
PROFESSIONALS
ROLE
Marc Ciancimino
Mezzanine Investment Analyst
Scott Cullerton
Private Credit Investment Analyst
Erik A. Falk
Co-Head of Leveraged Credit
19
Ami Goldfein
Public Equities Investment Analyst
11
Frederick M. Goltz
Head of Credit and Mezzanine
18
Dev Gopalan
Industry Credit Investment Analyst
Robert Howard
Head of Public Equities
16
Scott Henkin
KKR Credit Relative Value
15
Omar Kara
Public Equities Investment Analyst
12
Jeremiah S. Lane
Ralph Marron
Head Public Equities Trader
29
John Massad
Client Portfolio Management (Equity Strategies)
13
Mubashir Mukadam
Special Situations Investment Analyst
13
John M. Reed
Head Credit Trader
15
Christopher A. Sheldon
Co-Head of Leveraged Credit
13
Jason Ridloff
Mezzanine Investment Analyst
16
William C. Sonneborn
Business Unit Head
20
Lynette Vanderwarker
Client Portfolio Management (Credit Strategies)
15
Jamie M. Weinstein
Co-Head of Special Situations
13
Nathaniel L. Yap
12
Nathaniel Zilkha
Co-Head of Special Situations
13
YEARS OF
EXPERIENCE
15
9
KAM INVESTMENT PHILOSOPHY

KAMs focus is on utilizing a fundamental investment approach and leveraging proprietary resources to seek out long-term capital
appreciation and attractive risk-adjusted returns over a 3-5 year investment horizon (not short-term trading or index replication)
Proprietary
Sourcing
Single-platform sourcing
KAMs team has long-standing relationships

with a wide network of issuers
KKR is a valued client to Wall Street and

often receives priority calls regarding
proprietary deals
KAMs Direct Lending, Mezzanine and

Distressed Debt teams have experienced,
dedicated sourcing professionals who are
focused on finding opportunities through PE
sponsors, banks and companies/issuers
KAMs team leverages the full KKR network:

Private Equity, KKR Capital Markets, KKR
Capstone, portfolio company management and
KKRs Senior Advisor network
Active
Portfolio
Management
Capital
Preservation
We appreciate that our investors have

entrusted us with their capital, and we
steward it as if it were our own
Each investment decision is predicated on

a clear thesis, leveraging appropriate Firm
resources and knowledge
KAM recognizes that credit investing comes

with limited upside (par) and asymmetric
downside risk
KAM Investment Committee (IC)

requires detailed, proprietary research
and a thorough IC memo for any credit
considered for portfolio inclusion
KAM will only invest in a credit once its

deep due diligence analysis has distinguished
a competitive advantage and a differentiated
view relative to the market
Re-evaluate and re-underwrite each credit

in the quarterly Portfolio Management
Committee meetings
Active portfolio management process

necessitates ongoing re-evaluation of
portfolio structure and risk measures;
continuous portfolio optimization
Each approved name is re-underwritten

each quarter by the Portfolio Management
Committee; this discipline has resulted in
extremely low default statistics
Note: Portfolio managers may use some or all of the techniques described above or herein. Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedures, which may limit the
involvement of personnel in certain investment processes and discussions.
KAM INVESTMENT PROCESS
Sourcing
KAM Investment
Professionals
KKR Private
Equity Professionals
KKR
Capital Markets
KKR
Capstone
KKR
Relationships
KAM Investment Approval Process
KAM
Analysts
KKR
Private Equity
Investment
Professionals
KKR
Senior Advisors
Due Diligence
Initial
Investment
Discussion
Final Investment
Approval
Active Portfolio
Management
KKR Senior
Advisors
KKR Portfolio
Companies
CREDIT INVESTMENT STRATEGIES

KAM has a number of active investment strategies across its Marketable Securities and Alternative Investments divisions that
represent a range of risk/return and liquidity profiles
Marketable Securities Division
Special Situations
Alternative Investments Division

Mezzanine
Return Potential
Opportunistic
Credit
Direct Lending
High Yield
Bank Loans Plus

High Yield
Bank Loans
Strategic investments in
distressed companies
Directly sourced mezzanine financings
Dynamic allocations to bank loans, high yield,

mezzanine and distressed debt
Proprietarily sourced senior debt financings
High yield bonds based on fundamental credit analysis
Bank loans and high yield based on fundamental credit analysis, with a significant focus
on principal protection
Bank loans based on fundamental credit analysis, with a significant focus on principal protection
Risk
Note: KAM will consider a number of factors, including, for example, projected cash flows, projected future valuations of target assets and businesses, relevant other market dynamics (including interest rate and currency markets), anticipated contingencies, and regulatory
issues. Actual results and events may, however, differ materially from the assumptions underlying such analysis. Such returns are subject to significant economic, market, and other uncertainties that may adversely affect the performance of actual investments. Investments
may be acquired in respect of any KAM fund, vehicle of account that have an anticipated internal rate of return below or above the projected return indicated herein. Such projections are neither guarantees nor predictions or projections of future performance of any KAM fund,
vehicle or account, and are not to be relied upon as such. There can be no assurance that any particular investment or strategy will achieve such returns, that KAM will achieve the investment objectives noted above or that investors in any KAM fund, vehicle or account will
receive a return of capital. An investments targeted gross and net internal rate of return may change over time and may go down as well as up.
II.1 Leveraged Credit Platform

The Marketable Securities Division of KAM claims compliance with GIPS.
LEVERAGED CREDIT SENIOR INVESTMENT TEAM
Experienced
Team with
Diverse
Backgrounds
Leveraged Credit Senior Team
Erik Falk, Co-Head
Chris Sheldon, CoHead
Member of KKR and Co-

head of Leveraged
Credit; joined KKR in
2008
Member of KKR and Cohead of Leveraged

Credit; joined KKR in
2004
Former Managing
Director at Deutsche
Bank Securities Inc.
where he was most
recently Global Co-Head
of the Securitized
Products Group
Former Vice President,

Senior Investment
Analyst at Wells Fargo
Bank, High Yield
Securities Group
Over 19 years of
industry experience
Over 13 years of
experience in leveraged
credit
Nat Yap
Jeremiah Lane
Dev Gopalan
John Reed
Joined KKR in 2004
Joined KKR in 2005
Joined KKR in 2010
Former senior
investment analyst at
J.P. Morgan
specializing in paper,
packaging and
chemicals
Former Associate in
the Investment
Banking/Technology,
Media and Telecom
Group at J.P. Morgan
Chase
Former Principal at the

Canada Pension Plan
Investment Board in
Private Investments
and Private Debt
Head of Credit
Trading; joined KKR in
2008
Over 12 years of
experience in
leveraged credit
Former Associate
Director at Bear
Stearns & Co. in
Institutional Sales &
Trading
Over 15 years of
industry experience
Over 9 years
industry experience
Over 9 years
industry experience
~60 Dedicated KAM Investment Professionals
~60 KKR
Capstone Professionals(1)
11
~30 KKR Senior Advisors
~150 KKR Private Equity

Investment Professionals(1)
~30 KKR Capital

Markets Professionals(1)
(1) Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedures, which may limit the involvement of personnel in certain investment processes and discussions.
Division
LEVERAGED CREDIT STRATEGY OVERVIEW
MARKET
OPPORTUNITY
Secondary
Bank Loans
Market Trading
Strong risk-adjusted
return potential
Asset-Based
Bank Loans
Financing
Plus
High Yield
Strong risk-adjusted return

potential
Private Lending/
High Yield
Recapitalizations
return potential
Senior position in
capital structure
Favorable market technicals
Call protection based on

discounted purchase price
Call Protection
Control
Investing
return potential
Relative liquidity
INVESTMENT
OBJECTIVE
Outperform above a blended

index comprised of the Merrill
Lynch HY index and LSTA
index over a 3 to 5 year period
Outperform above the Merrill

Lynch HY index over a 3 to 5
year period
Outperform above the Merrill

Lynch HY index over a 3 to 5
year period
Bank loans based on

fundamental credit analysis,
with a significant focus on
principal protection
Bank loans and high yield

based on fundamental credit
analysis, with a significant
focus on principal protection
High yield bonds based on

fundamental credit analysis,
with a significant focus on
principal protection
Dynamic allocations
across the full spectrum
of below investment grade
credit markets
October 2004
July 2008
October 2004
May 2008
INCEPTION
DATE
Outperform above the relevant

LSTA index over a 3 to 5 year
period while focusing on the
most senior part of the
capital structure
PORTFOLIO
FOCUS
LIBOR floors on growing

percentage of loans
12
Note: There is no guarantee that any investment objective will be met.
Division
PERFORMANCE HISTORY FOR MARKETABLE SECURITIES STRATEGIES

AS OF MARCH 31, 2012
Inception-to-Date Annualized Performance vs. Benchmark by Strategy
18%
KAM Gross
KAM Net
Benchmark
16%
16.7%
15.0%
14%
12%
10.9%
11.4%
10.2%
10.7%
10.0%
10%
8.1%
8%
8.1%
6%
4%
2%
0%
Bank Loans Plus High Yield
(65% LSTA / 35% BoA ML HY)
Inception July 2008
13
High Yield Carve Out

(100% BoA ML HY)
Inception September 2004
Supplem ental Inform ation
(100% BoA ML HY)
Inception May 2008
Note: See Endnotes for important information relating to the information presented herein. The High Yield Carve Out is supplemental to the GIPS performance presentations shown in the Endnotes. Past performance is not indicative of future
results and there can be no assurance that comparable results will be achieved in respect of such strategies going forward or that investors in any KAM fund, vehicle or account will receive a return of capital.
Division
II.2 Direct Lending Platform

The Marketable Securities Division of KAM claims compliance with GIPS.
SENIOR LEVERAGED CREDIT INVESTMENT & ORIGINATION TEAM

Experienced Team with Diverse Backgrounds
Bill Sonneborn
Member of KKR and
Head of KAM
Erik Falk
Marc Ciancimino
Member of KKR and

Co-head of
Leveraged Credit;
joined KKR in 2008
Joined KKR in 2008
Nat Yap
Jason Ridloff
Joined KKR in 2004
Joined KKR in 2008
Formerly Managing
Former senior
Formerly at Credit
Joined KKR in 2008
Director with GSC
investment analyst
Suisse/Donaldson,
Group in the
at J.P. Morgan
Lufkin & Jenrette
Former President and
Former Managing
European Mezzanine
specializing in paper,
specializing in
COO of The TCW
Director at Deutsche
business
packaging and
leveraged finance
Group, Inc.
Bank Securities Inc.;
chemicals
Over 15 years
Over 15 years
19 years of industry
Global Co-Head of
industry experience Over 11 years of
industry experience
experience
the Securitized
in sourcing and
experience in
Products Group
Member of the KAM
evaluating middle
leveraged credit
and Capital Solutions Over 19 years of
and large market
Investment
industry experience
transactions
Committees
Fred Goltz
Member of KKR and
Head of KAM Credit
and Mezzanine
Chris Sheldon
Jeremiah Lane
Member of KKR and

Co-head of
Leveraged Credit;
joined KKR in 2004
Dev Gopalan
Doug Tapley
Joined KKR in 2006
Former Vice
President at GE
Capital focused on
media and
healthcare
Over 10 years
industry experience
Scott Cullerton
Peter Glaser
Member of KKR and Joined KKR in 2010

Head of KCM; joined
Former Managing
KKR in 2006
Director at Barclays
in Investment
Former Managing
Banking focusing on
Director and Coleveraged finance
Head of North
American Equity
Over 20 years
Capital Markets at
industry experience
Citigroup
Member of Risk
Management
Committee
John Empson
Jeff Rowbottom
Joined KKR in 2005
Joined KKR in 2010 Joined KKR in 2008 Member of KKR and Co-Head of KCM
Head of KCM Europe;
North America;
Former Associate in Previously, Principal Former Vice
joined KKR in 2008
joined KKR in 2009
the Investment
in Private
President at Morgan
Joined KKR in 1995
Banking/Technology,
Investments at
Stanley Capital
Former Head of JP
Former Managing
Former Vice
Media and Telecom
Canada Pension Plan
Partners; initial
Morgans European
Director and Head of
Former Co-head of
President, Senior
Group at
Investment Board
member of Morgan
leveraged capital
U.S. High Yield
the Energy and
Investment Analyst
J.P. Morgan Chase
Stanleys renewed
markets business
Capital Markets at
Natural Resources
Over 9 years
at Wells Fargo Bank,
Private Equity group
Barclays Capital
private equity team
Over 9 years
industry experience
Over 20 years
High Yield
industry experience
Over 9 years
industry experience Over 17 years
Over 19 years of
Securities Group
industry experience
industry experience
industry experience
Over 13 years of
Member of the KAM
experience in
and Capital Solutions
leveraged credit
Investment
Committees
~60 Dedicated KAM Investment Professionals and Trading Team

~60 KKR
15
Craig Farr

Investment Professionals
Denotes KCM employees who

are not employed by KAM
~30 KKR Capital

Markets Professionals
Division
WE BELIEVE REFINANCING SUPPLY WILL SIGNIFICANTLY EXCEED DEMAND

Despite the recent flurry of
refinancing activity,
significant volume remains in
the middle market space
Traditional capital providers
are impaired
Few new CLOs are being issued
The bulk of existing CLOs are
exiting their reinvestment
periods
Middle Market Loan Par Outstanding Volume ($ billions)(1)

$25
20.7 20.4
$20
16.8
18.5
18.3
14.4
$15
10.6
$10
$5
1.6
3.4
5.3
5.9
6.1
6.9
13.7
11.8
7.0
$0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Consequently, one of the

largest historic suppliers of
capital has largely left the
market for the time being
Number of CLOs In Reinvestment Period(2)

240
196
180
161
114
120
60
48
2
2014
2015
0
(1)
(2)
As of March 31, 2012. Middle Market is defined as issuers with EBITDA of

$50 million or less. Standard and Poors LCD Middle Market Lending 1Q12
Review.
As of July 25, 2011. Source: LCD News.
16
Note:
2010
2011
2012
2013
This presentation reflects the current market views, opinions and expectations of KAM based on its historic experience. Historic market trends are not reliable indicators of actual future market behavior or future performance of any
particular investment or any KAM fund, vehicle or account which, may differ materially, and are not to be relied upon as such. There can be no assurance that investors in any KAM fund, vehicle or account will receive a return of capital.
Division
ENVIRONMENT LEADS TO LENDER-FRIENDLY TERMS

Middle market debt presents
potential for favorable terms
and structure
Typical Transaction Comparison

6.2x
Subordinated Debt
5.6x
Leverage levels are lower
Senior Unsecured
4.5x
4.3x
Spreads are wider
Senior Secured Debt
Terms are tighter

Below 3.25x
Secured
Leverage
Coverage ratios are higher;

Often come with arrangement
fees and / or OID
We are seeing compensation

for middle market transactions
through structure and pricing,
which was not as apparent in
2007
Note: The information in this slide is intended to be generally indicative of a

company's capital structure as well as the terms of middle market investments
in a typical leveraged buyout transaction, based on KAM's experience, its belief
as to current market conditions and its expectations as to market conditions in
the near future. The actual capitalization of KKR Direct Lending Strategys
portfolio companies and the terms of its investments may differ substantially
from this illustration on a case-by-case basis. There can be no guarantee that
future capital structures or investment terms will correspond with KAM's
expectations. Middle Market defined as issues with annual EBTIDA of $50
million or less.
(1) Source: LCD Quarterly Leveraged Lending Report. Data as of March 31,
2012.
17
Large Corporate
Middle Market
Large Corporate
2007 Vintage
Middle Market
2011 Vintage
Large Corporate
Middle Market
Nominal Spread(1)
568bp
701bp
Call Protection
Not frequent
Hard or soft call
Fee / OID
Often small OID
Typically significant fees or OID;

2-4%
Covenants
Limited; mostly incurrence based
Extensive; mostly maintenance based
Diligence
Syndicate level
Much more than syndicate level
Documentation
Borrower-friendly
Creditor-friendly
Investors
Likely to be limited to relationship

Wide syndication, Including CLOs,
investors with long-term
mutual funds, hedge funds and banks investment horizon
Division
KKR DIRECT LENDING STRATEGY SUMMARY

Strategy
Sourcing
Proprietarily sourced secured debt either through direct origination or clubbed situations from 3rd parties
Seniority
Focus on secured debt; primarily 1st lien (at least 75%) and some 2nd lien loans and bonds
Target Pricing
Cash coupons of L + 5-9% with PIK of 0-5%;

Total Coupon: L+ 5-10%;
Libor floors of 1-2%;
OID/Fees in the 1-4% range
Size
Focus on middle market companies:

$25 to $100mm of EBITDA
Documentation
Highly-negotiated, well-structured transactions
Financing Proceeds
Financings primarily for acquisitions, recapitalizations,

leverage buyouts, growth, working capital and/or general corporate purposes
Leverage
Seeks 1.5x-2.0x leverage with financing rates of L+250bp(1), gross equity returns in the high teens(2)
Liquidity
Low liquidity
Geography
Global, with a North American focus
Targeted Returns
Target net returns in 11-14% range(2)
(1)
(2)
Based on current market rates and conditions, subject to change.

Target returns are based on statistical analysis of historical information. There is no guarantee that targeted returns will be realized or achieved or that an investment strategy will be successful. Investors should keep in mind that the securities markets are
volatile and unpredictable. There are no guarantees that the historical performance of an investment, portfolio, or asset class will have a direct correlation with its future performance.
18
Division
WASTEQUIP
Situation Overview
Wastequip (the Company) completed a recapitalization on June 15th, 2012. The
recapitalization included a new $150 million term loan and $40 million revolver.
Proceeds from the Term Loan were be used to finance a restructuring
Through recapitalization, Wastequip eliminated over $500 million of debt and reduced
its annual interest expense by over 80%
The investment opportunity arose because of KAMs relationship with the transaction
intermediary, Goldman Sachs, and focus on the name when it was distressed,
highlighting the benefit of KAMs multi-strategy approach
Investment Thesis / Risks / Diligence
Summary of Terms
Transaction Overview
Borrower/Company: Wastequip, LLC (the Company)
Industry: Waste Handling / Recycling
Geography (Headquarters): United States (Charlotte, NC)
Purpose: Refinance Existing Term Loan
Sponsor/Corporate: Centerbridge
LTM Revenue / EBITDA: $344.0 million / $38.0 million
Sr. Sec / Total Leverage: 3.9x / 3.9x
Facility Overview
New Facility: Senior Secured Term Loan
Facility Size: $150 million
KKR LP Hold: $24.8 million
UOP: Restructuring
Key Terms: L+675, 1.50% LIBOR Floor, 97.5 OID, 1% amortization
Investment Thesis
Strong market position: Company derives 90% of its revenue from products in which
it has a leading position. On the steel products side of the business, Wastequip is the
only company in North America with national scale and is 5x the size of its next
largest competitor
Company is early in its cycle and has solid earnings momentum: LTM EBITDA of $38m
vs. peak of $77m and trough of $19m. Backlog/orders are improving significantly
Nondiscretionary nature of product/market. While timing of purchases of waste
equipment can be delayed, and the waste equipment market is highly cyclical, over
time we believe waste collection is essential and growing, and the companys products
are essential to this
Localized market for steel products
Free Cash Flow Profile: LTM EBITDA of $38m vs. FCF breakeven of $17m ($5m capex
and $12m cash interest)
Company Overview
Wastequip is the largest manufacturer of waste handling and recycling equipment
used to collect, process and transport solid and liquid waste in North America, with
product lines that include steel containers, plastic containers, hoists, compactors,
balers, tarpers, vacuum trucks, parts and services
Founded in 1989, Wastequip is headquartered in Charlotte, North Carolina and has 24
manufacturing facilities in North America
The Company serves over 5,000 customers nationwide, including national, regional
and local waste haulers, chain and convenience stores, municipalities, distributors,
and recycling companies
Low debt / historical EV

Investment Risks
Plastics business has seen continued top-line declines through 2011
Highly cyclical industry the majority of products are large-ticket discretionary goods,
in addition, waste collection is tried to construction
Commodity inputs steel and resin together represent half of COGS, or 40% of
revenue
19
KKR Edge
KKR has a strong relationship with the transaction intermediary, Goldman Sachs, with
different parts of KKR having been an important client to Goldman for a number of
years. This relationship was not just institutional in nature; the KKR deal team also
had prior relationships with the deal team at Goldman
KKR had followed this situation for over a year, first as a distressed opportunity and
then anticipating the new issue. As a result, we were able to act quickly, drive terms,
and invest in a meaningful size across KAMs managed funds and accounts
Division
THINGS REMEMBERED
Situation Overview
Things Remembered Inc. (Things Remembered, or the Company), headquartered
in Highland Heights, Ohio, is the leading destination for personalized gifts in the U.S.
with 40 years of brand history. It was previously acquired by private equity firms
Bruckmann, Rosser, Sherrill & Co. and Gordon Brothers Merchant Partners in 2006
On April 22, 2012, Madison Dearborn Partners signed a definitive agreement to
acquire Things Remembered for a purchase price of $295mm, or ~7.5x LTM pro
forma adjusted EBITDA
The financing structure is as follows: $30mm Senior Secured Revolver, $117mm
Senior Secured Term Loan, $30mm Mezzanine Notes, and $163mm equity
contribution from the sponsor, management, and mezzanine investors
KCM acted as the Lead Arranger and Lead Bookrunner for the Senior Secured
Facilities around KAMs commitment. KAM committed to $35mm of the tranche
Investment Thesis / Risks / Diligence
Summary of Terms
Borrower/Company: Things Remembered
Industry: Retail
Geography (Headquarters): United States (Highland Heights, OH)
Purpose: Sale
Sponsor/Corporate: Madison Dearborn Partners, LLC
LTM Revenue/EBITDA: $305.0million / $41.4million
Sr. Sec / Total Debt: 2.8x /3.5x
Facility Overview
Facility: Senior Secured Term Loan
Facility Size: $117 million
KKR LP Hold: $35 million
UOP: Acquisition Financing
Key Terms: L+650, 1.5% LIBOR floor, 98.0 OID (plus underwriting fees), 1%
amortization, 101 soft call for year 1, 50% FCF sweep; 40mm Incremental Facility
subject to leverage test, maintenance covenants and MFN
Investment Thesis
Leading player in the personalized gift space. As evidence of the uniqueness of its
concept, most customers cannot name a competitor
Strong management team that has led impressive improvement in business since
taking over in 2006; resilient performance during the recent economic downturn
Attractive customer demographics, with high degree of loyalty and strong database
Lower than average seasonality given event-driven nature of purchases (weddings,
birthdays, etc.)
Highly profitable store base with strong unit level economics
Opportunities for business improvement including both store growth and direct
channel/online growth, as well as driving personalization revenue through new
initiatives
Investment Risks
Limited history operating at current profitability levels -business had underperformed
prior to current management team
Competitive landscape is benign today, but there is potential for increased pressure
Company Overview
Things Remembered operates in the highly fragmented $15bn U.S. gift industry and is
a leading destination for personalized gifts in the U.S. The majority of their products
sold are engraved
The company operates a broad geographic network of 650 retail locations in 49
states, as well as a rapidly growing online business
All locations are equipped with engravers. Proprietary products are designed to
establish emotional connection with the customer and create high levels of customer
satisfaction
High quality retail model in a variety of configurations with good growth and strong
store-level margins across both full store locations and smaller footprint kiosks
KKR Edge
High operating leverage with rent adjusted leverage of 5.5x
KKR has significant credit investment experience in the retail space
Mall-based, discretionary retailer dependent on keeping fresh product in the stores
This deal highlights KKRs capability as a one-stop-shop, complementing its ability to

offer investment strategies across flexible pools of capital with its capital market
platform. Our level of input is a direct result of our early involvement with the
Company and sponsors as a potential capital markets arranger, mezzanine provider,
or lending partners investor
Execution risk. Management is in the process of finalizing an acquisition and plans to

open new stores to further expand the business
20
The investments shown on pages 26 though 31 represent all transactions completed in KKR Lending Partners LP as of March 31, 2012. The specific investments identified are not representative of all of the investments purchased, sold or
recommended for KAM clients, and it should not be assumed that the investments identified was or will be profitable. Actual holdings will vary for each client and there is no guarantee that a particular clients account will hold any or all of the
investments listed.
Division
KKR DIRECT LENDING STRATEGY MODEL TRACK RECORD

37 Obligors, 43 individual
transactions; ~$1.8 billion
invested
35 1st Lien deals, 8 2nd Lien deals
KAM Model Gross Unlevered Performance vs. S&P LSTA
KKR Direct Lending Strategy (75% 1st Lien/25% 2nd Lien)
8.2%
5.0%
Annualized
Generated a 8.2% unlevered

gross IRR, outpacing broad
market leveraged loans, as
represented by the S&P LSTA
index returns of 5.0%
1 year
3 year
5 year
15.7%
17.0%
17.9%
Cumulative
Applying leverage, 5 year

hypothetical returns would be in
the mid-teens
1 year
3 year
5 year
15.7%
60.3%
127.7%
KKR Direct Lending Strategy Deal Volume & Gross Unlevered IRR
Since 2005 ($mm)
20%
21
S&P LSTA
KAM Gross Hypothetical Performance Assuming Leverage Deployment
75%/25% reweighting of 1st vs.

2nd lien more indicative of the
proposed strategy
Note: See page 1 for important information relating to the information

presented herein. Past performance is not indicative of future results and there
can be no assurance that comparable results will be achieved in respect of
such strategies going forward or that investors in any KAM fund, vehicle or
account will receive a return of capital. All data is as of March 31, 2012. The
performance presented reflects model performance an investor may have
obtained had it invested in the manner shown and does not represent
performance that any investor actually attained. The model performance
presented is based upon the following assumptions: leverage calculation
assumes 70% advance rate, financing rate of L+225, and upfront fee of 1.5%
and a 3 year investment period with a turnover of 30%. Calculation assumes
current 5 year swap rate. Credits chosen for the track record meet all of the
following criteria: KAM participated in more than 15% of the tranche at the
time of trade, secured transactions only, time period from KAM inception to
March 31, 2012. Certain of the assumptions have been made for modeling
purposes and are unlikely to be realized. No representation or warranty is
made as to the reasonableness of the assumptions made or that all
assumptions used in achieving the returns have been stated or fully
considered. Model returns have many inherent limitations and may not reflect
the impact that material economic and market factors may have had on the
decision-making process if client funds were actually managed in the manner
shown. Actual performance may differ substantially from the model
performance presented. Changes in the assumptions may have a material
impact on the model returns presented. Strategy was based in a declining rate
environment. Other periods selected may have different results, including
losses. There can be no assurance that KAM will achieve profits or avoid
incurring substantial losses.
KAM IRR
$407.4
Notional
$450
Gross IRR
$373.3
$359.9
15%
14.2%
14.8%
$237.6
10%
5%
$362.5
$350
$300
$250
10.4%
9.1%
$200
$150
6.3%
4.6%
$71.5
$100
$50
$0.0
0%
2005
$400
2006
2007
2008
$0
2009
2010
2011
II.3 Mezzanine Platform

The Alternative Investments Division of KAM does not claim compliance with GIPS.
MEZZANINE SENIOR INVESTMENT TEAM
Experienced
Team with
Diverse
Backgrounds
Mezzanine Senior Team
Fred Goltz,
Head of Mezzanine
Member of KKR and Head

of KKR Credit and
Mezzanine
Joined KKR in 1995
Formerly Co-head of the

Energy and Natural
Resources private equity
industry team
Over 18 years of industry

experience
Member of the KAM and

Capital Solutions
Investment Committee
~60 KKR
23
Marc Ciancimino
Jason Ridloff
Scott Cullerton
Joined KKR in 2008
Joined KKR in 2008
Joined KKR in 2008
Formerly Managing
Director with GSC Group
in the European
Mezzanine business
Formerly at Credit
Suisse/Donaldson,
Lufkin & Jenrette
specializing in
leveraged finance
Former Vice President at

Morgan Stanley Capital
Partners; initial member
of Morgan Stanleys
renewed Private Equity
group
Over 15 years industry

experience

experience

experience in sourcing
and evaluating middle
and large market
transactions
Doug Tapley
Joined KKR in March

2006
Formerly Vice President

at GE Capital
specializing in media,
communications and
healthcare
Over 10 years of
investment experience

~30 KKR Capital

Division
SIGNIFICANT DEMAND DRIVER FOR MEZZANINE OVER COMING 5 YEARS

We believe private equity activity and a major wave of refinancings will drive a significant demand for mezzanine
We believe this demand is relatively under-supplied due to the limited amount of mezzanine capital available
~$380 billion of
un-invested private
equity capital
commitments
seeking transactions(1)
Numerous
non-sponsor
companies with
financing needs
Additional deal
flow expected to be
driven by ongoing
restructuring of
corporate landscape
Majority of
Mezzanine investors
are focused
on smaller sized
transactions
~$850 billion of
leverage debt
due for
refinancing in
next 5 years(2)
Demand
24
Over $70 billion of

mezzanine capital
raised globally in
last 5 years, at least
half of which
has already been
invested(1)
(1) Source: Preqin; data based on global fundraising as of April 2012.

(2) Debt maturities from JP Morgan, as of December 2011.
Supply
Division
KEY STEPS TO STRONG MEZZANINE INVESTING

We believe that the following characteristics distinguish KKRs approach to mezzanine investing:
Sourcing
Diligence
Portfolio Construction
and Management
Global network
Integrated approach
High attention to governance issues
Integrated One-Firm
origination capabilities
~60 Investment professionals
Intensive regular review of

companies/instruments
Leverage KKRs scale advantage with

Wall Street
~ $3 billion of KAM-sourced deals
since inception in 2004
Industry aligned verticals with private

equity teams
Ability to be active investors
Underwriting process: private equitylike diligence

Invest only when a competitive
advantage exists
KKR Mezzanine Deals Done in Last 5 Years(1)
25
(1) Portfolio companies presented represent all suitable mezzanine investments from the period 2005 March 31, 2012. The specific companies identified 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 or will be profitable.
Division
Company Overview
Mast, a subsidiary of Limited Brands

(Limited), is an international apparel
sourcing and logistics company that
acts as an intermediary between their
clients, North American-based
specialty retailers and their partners,
apparel factories throughout Asia and
South America.
Mast is the #3 player globally in
apparel sourcing by market share. The
Company offers its customers
customized design, sourcing, and
logistics value-added services that are
mission-critical to its customers. For
Masts specialty retailer customers,
lowest price sourcing is secondary to
quality and flexibility.
Masts current customers are
comprised of Express, Chicos/White
House Black Market, New York &
Company, Victorias Secret Direct,
Limited Stores, Lane Bryant, and
Christopher & Banks.
Mast generated LTM 6/30/11 revenue
and PF Standalone EBITDA of $1,039
million and $38 million, respectively.
On September 13, 2011, Sycamore

Partners signed an agreement to
acquire Mast Industries, Inc. for a
total purchase price of approximately
$227.5 million. The EV of the business
represents a 6.4x multiple of LTM
9/30/11E EBITDA of $38 million.
The debt financing will include a new
$175 million revolving credit facility
($50 million drawn at close) and $40
million of second lien secured
subordinated notes, with total
leverage of 2.4x. The Sponsor will
invest $79 million of new cash equity
(inclusive of KAM equity co-invest)
and Limited will roll $76 million
(combined 63% of the purchase
price).
Investment Highlights
Strong Market Position

Strong Sponsor and Operator (Sycamore
Partners formed by ex-Golden Gate
Capital retail team)
High Cash Flow Conversion
Stable Customer Relationships with
Significant Interdependence
Strong and Experienced Management
Team
Conservative Credit Profile
KKR Approach
The transaction was sourced through our strong relationships with the Sponsor,
Sycamore Partners, formed by the ex-Golden Gate Capital retail team Stefan
Kaluzny and Peter Morrow. KAM previously worked with Stefan and Peter on our
investments in J.Jill, Eddie Bauer, and Express.
Our competitive advantages in this transaction included:
A long history of working with the Sycamore Partners team and their view of KAM as an
excellent partner;
Deep knowledge of the specialty retail space in particular through our debt and equity
investments in Toys R Us, J.Jill, Eddie Bauer, and Express;
Our Capstone team, which helped provide important insight and perspective into the carve-out
economics and transition services agreement
Insight gained from significant market due diligence
Division
Transaction Update
BSN medical is a leading global
medical device company that

develops, manufactures and markets
wound care, compression therapy and
orthopedics products mainly to
hospitals, pharmacies and sanitary
shops
Headquartered in Hamburg, BSN

medical operates in 35 countries, has
eleven production sites and employed
3,995 at the end of 2011
In 2011 BSN medical generated total
sales of 667m and EBITDA of 169m
(25.3% margin)
On June 9, 2012, EQT signed an

agreement to acquire BSN Medical, for
a total consideration of 1.8 billion
from Montagu. The EV of the business
represents a 10.3x multiple of LTM
EBITDA of 174 million
The acquisition will be financed with
740 million of funded senior term
loans bringing senior leverage to
4.25x and 391.5 million of mezzanine
brining leverage through the tranche
to 6.5x
Stable, non-cyclical markets with strong

resilience in the last downturn
Broad diversification of sales across
products, geographies and channels
limits exposure to one-off events or
deteriorations of local market conditions
Strong positions in multiple market
segments with access to strong growth
geographies and expansion markets
Market factors provide competitive
advantage
Leading European sponsor
Strong cash flow conversion
KKR Approach
KAM started working on this opportunity in February 2012 with EQT by
working alongside them to provide mezzanine to help finance the
acquisition
Following a failed pre-emption attempt by EQT in early March which KAM
supported, KAM continued to support the sponsor through out the entire
auction that followed which ultimately led to the successful SPA signing in
June
We believe our competitive advantages in this transaction included:
Deep knowledge of the medical device space, having gained significant insights from
previous investments in the sector (Convatec, KCI, DJO)
Approach of leveraging broader KKR franchise, with insights from the PE team (had
analysed the space in detail) and accessing KKR portfolio companies in our diligence
process (HCA and Boots)*
Deep market due diligence with industry consultants, vendors, resellers and endcustomers
Strong relationship with EQT
*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 of such 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 policies and procedures, which may restrict or limit discussions and/or collaborations with Public Markets/KAM.
Division
MEZZANINE PERFORMANCE
KKR Mezzanine Partners L.P.
Inception to 3/31/2012
(Amounts in millions)
Date of
Investment
Original Investment
Name
July-10
Invested
Amount1
Altegrity Holdings
27.3
Realized
Value2
5.0
Unrealized
Value3
8.7%
1.14
14.6%
1.19
36.4
21.0%
1.06
55.3
59.3
10.3%
1.11
2.4
37.8
40.2
29.6%
1.14
45.1
2.2
47.3
49.5
25.1%
1.10
OpenLink International, Inc.
65.6
2.9
66.8
69.7
16.5%
1.06
Norcell Sweden Holding 2 AB
29.8
9.4
24.7
34.1
46.3%
1.15
January-12
Capital Safety Group
27.2
1.2
27.2
28.3
23.5%
1.04
January-12
Genesys Telecommunications Laboratories

24.2Inc.
0.5
25.0
25.4
35.6%
1.05
64.6
7.4
December-10
J Jill
34.2
36.4
IMCD Group BV
53.3
4.0
TelX Group, Inc., The
35.2
October-11
Mast Industries Inc
October-11
November-11
February-11
September-11
Total
406.6
71.3
Gross Multiple of
Invested Amount6
77.2
RBS WorldPay, Inc.
26.2
Gross
IRR5
31.2
November-10
Total
Value4
69.8
-
380.0
451.3
Gross Unhedged IRR=
1.11
16.1%
FX Hedge Impact=
-0.1%
Gross Hedged IRR=
16.0%
Fees & Expenses1= -10.0%

Other Capital Transaction Timing2= -1.2%
Net Hedged IRR=
4.8%
Note: As of March 31, 2012. Please refer to the next slide for important information regarding the investments included on this slide. Fund level IRR will differ from the asset-level IRR as it considers management fees, expenses, accrued
carried interest, the timing of capital calls and capital distributions, and the effect of carrying other assets and liabilities, including cash, on the balance sheet. Past performance of any KAM-sponsored fund, vehicle, account or investment
referred to therein is not necessarily indicative of future results and there can be no assurance that the investments will perform similarly to those comprising the Investment Experience.
1)
Includes inception to date management fee and organizational costs billed or accrued.
2)
Timing difference between capital called and capital deployed.
28
MEZZANINE PERFORMANCE (NOTES)

1. Unless otherwise specified, the Invested Amount with respect to each investment represents the equity amount of the original investment therein together with any
related follow-on investments made thereafter. Cash flows on which multiple and IRR calculations were based include all such investments as of the date made.
2. Consists of principal and interest payments (including capitalized PIK interest plus accrued but unpaid cash and PIK interest), dividends and proceeds from sales.
Prospective investors should note that under the terms of the fund, accrued but unpaid PIK interest would not be deemed realized until actually paid to the Fund.
3. Estimated current value determined in accordance with KAMs valuation policy as of the applicable date, which provides that (i) quoted market prices in active markets
are the best evidence of the fair value of a financial instrument; and (ii) if quoted market prices in active markets are not available, fair value may be estimated using a
variety of methods depending on the nature of the instrument and the manner in which it is traded. KAMs estimate of fair value was undertaken in good faith and was
based on the consistent application of a variety of factors, with the objective being to determine the value that would be received upon the sale of the instrument or paid to
transfer the instrument in an orderly transaction between market participants at the relevant measurement date. Results include all writedowns and realizations as of
9/30/10.
The actual realized returns on unrealized investments will depend on, among other factors, actual default rates, future operating results and cash flows, the ability to make
coupon payments when due by the portfolio companies, the value of investments and market conditions at the time of disposition, legal and contractual restrictions on
transfer that may limit liquidity, any related transaction costs, the performance of equity securities, the actual amount, cost and other terms of leverage and the timing and
manner of disposition of investments, all of which may differ from the assumptions on which the valuations used in the prior performance data contained herein are based.
Accordingly, the actual realized return of unrealized investments may differ materially from the returns indicated herein. Prospective investors should note that the
performance of the investments shown in the Investment Experience may differ from the performance of such investments reported to investors in the applicable KAM
managed funds, vehicles and accounts in which the investments were actually made as a result of the differing procedures and methodologies used to create the
Investment Experience, including conventions adopted for consistency of presentation among investments included in the Investment Experience, such as frequency of
cash flows for computing Gross IRRs (i.e., monthly vs. annually vs. quarterly), IRR methodology (i.e., time-weighted vs. dollar-weighted) and the effects of currency gains
and losses.
4. Computed as sum of Realized Value plus Unrealized Value.
5. Gross IRR for purposes hereof shall mean an 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 included therein 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 of unrealized
investments 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; for a description of such fees, carried interest and expenses, see the Original Memorandum including Section X entitled Summary of Principal Terms and Part
II of Form ADV maintained by KAM, a copy of which will be furnished to each investor prior to its admission to the Fund.
6. Computed as Total Value divided by Invested Amount.
29
II.4 Special Situations Platform

The Alternative Investments Division of KAM does not claim compliance with GIPS.
SPECIAL SITUATIONS SENIOR INVESTMENT TEAM
Experienced
Team with
Diverse
Backgrounds
Special Situations Senior Team
Jamie Weinstein, Co-Head
Co-head of Special
Situations Investing; joined
KKR in 2005
Involved in portfolio
management and credit
analysis for over 100
transactions
experience
Nat Zilkha, Co-Head
Member of KKR and Co-head

of Special Situations
Investing; joined KKR in
2007
Director of Harden
Healthcare
Over 13 years of private

equity and principal debt
investing across numerous
industries at KKR and
previously in Goldman
Sachss Principal Investment
Area
Mubashir Mukadam
John Reed
Joined KKR in 2011
Joined KKR in 2008
Former Managing Director

focused on European
Distressed at York Capital
and Director within the
Distressed Products Group
at Deutsche Bank
Former Associate
Director at Bear Stearns &
Co. in Institutional Sales
and Trading

experience

experience

~60 KKR
31

~30 KKR Capital

Division
HOW WE DEFINE SPECIAL SITUATIONS INVESTMENTS

The Special Situations team invests in opportunities where KKR has an edge
Common Characteristics of Special Situations Investments
Catalyst:
Capital Structure or Broader Market Dislocation
Investment Strategies
Rescue Financing / Recapitalization

Expected to be
~50-70%
of Portfolio
Control-Oriented Opportunities
Expected to be
~20-30% of Portfolio
Expected to be
~10-20% of Portfolio
Secondary Distressed
Portfolio Purchases
FOCUS IN ALL STRATEGIES IS ON PROPRIETARY SOURCING AND

INVESTING WHERE KKR HAS AN EDGE
32
Division
THE MARKET OPPORTUNITY

Through our teams on-going diligence, we have developed investment theses around market themes and identified distinct Special
Situations investment opportunities
Theme
European Sovereign Crisis

and Bank De-levering
Global Healthcare
Funding Crisis
Asia Pacific Volatility
Energy
33
Investment Thesis
Indicative Investments
Bank de-levering and associated derivative

effect
Capital markets volatility
Lack of liquidity
Maturity walls
Lack of government funding

Reform in healthcare payments
Market dislocation
Perception of slower near-term growth

Contagion of economic slowdown in Europe
Weaker consumer spending environment in
Australia
Highly cyclical, capital intensive industry

Market and commodity volatility
Non-traditional originated financings and
trading opportunities
Note: Please refer to Important Information on page 1 regarding market views. The above listed companies represent all investments reflecting the corresponding investment thesis detailed above. The specific companies identified are not
representative of all of the companies purchased, sold or recommended for KAM clients, and it should not be assumed that the investment in the companies identified was or will be profitable. Actual holdings will vary for each KAM client and
there is no guarantee that a particular KAM clients account will hold any or all of the companies listed.
Division
QUICKSILVER
Background
The Company is an oil and gas producer focused on
unconventional natural gas
In order to support development in the Horn River Basin, the
Company and KKR entered into a JV agreement whereby KKR
would purchase an interest in an existing pipeline and commit
to fund future new-build midstream assets in the Horn River
Upon the closing in December 2011, KKR delivered a $255mm
equity commitment in a proprietary originated structured
investment
KKR Edge
Sourcing Edge
Diligence Edge
Through proprietary
relationships developed by the
KKR Energy and Infrastructure
team, the Company reached
out to KKR when looking to find
a JV partner for the
development of Horn River
midstream assets
Longstanding experience
investing in energy from both
the equity and fixed income
standpoints
KKR
EDGE
Attractive risk/reward profile
Take-or-pay contract with no direct volume or price risk,
supported by a parent guarantee
Drilling commitment provides volume protection
Substantial potential upside to contracted base return
Potential for additional 3rd party volumes on the pipeline to
be brought into the system
Potential upside from volumes beyond 10-year term, both
from continuation of drilling and from the tail associated
with wells drilled within the 10-year contract period
Potential platform upsides associated with future projects
within the Horn River
KAM has been invested in the

Companys capital structure for
over three years and was able
to evaluate the counterparty
risk quickly
KAM Edge
Special Situations platform

provides differentiated ability to
provide capital solutions to
partners for differentiated
transactions
Solutions Edge
Note: Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedures, which may limit the involvement of personnel in certain investment processes and discussions. Past performance is no guarantee of
future results. This example is included solely to illustrate the terms and strategy which has been utilized by the KKR Special Situations team. Past investments by KAM are not indicative of prospective investments that will be made by any KAM fund, vehicle or account or of
the future performance thereof.
34
Division
EDCON
Background
The Company is the largest non-food retailer in South Africa,
with a 29.3% market share in the South African clothing &
footwear market, nearly twice that of its nearest competitor
Bain Capital purchased the Company in April 2007 and KKR
private equity was the runner up in the auction
KKR Edge
Diligence Edge I
KAM leveraged diligence on the company and jurisdiction, and
had intimate knowledge of the companys business model and
the South African retail market
Through the secondary public markets KAM began investing in

the Companys Senior Secured Notes in August 2011
KKR
EDGE
The Company is larger than its nearest competitor and has

strong brands, good store locations, and is not fashion focused
Due to the growing middle class of the country, the South

African retail market is attractive over the long term and also
provides a strategic African entry point for international players
Through the Senior Secured Notes at our cost basis, we are

implicitly valuing the company at attractive levels: 0.3x
attachment point, 4.2x EBITDA multiple, 14% un-levered FCF
yield and ~16% YTM
The KAM team worked with the KKR private equity retail team
to update its due diligence regarding the business and used
contacts established by the private equity team in the South
African market to evaluate the legal and jurisdictional
considerations
Diligence Edge II
Note: Please refer to Important Information on page 1 for further information on KKRs inside information barrier policies and procedures, which may limit the involvement of personnel in certain investment processes and discussions. Past performance is no guarantee of
future results. This example is included solely to illustrate the terms and strategy which has been utilized by the KKR Special Situations team. Past investments by KAM are not indicative of prospective investments that will be made by any KAM fund, vehicle or account or of
the future performance thereof.
35
Division
SPECIAL SITUATIONS PERFORMANCE

REALIZED INVESTMENTS
Though the portfolio is in its early stages of development, we are pleased with the initial performance
Inception to 3/31/2012
(Amounts in millions)
Investment
Date of
Name
Original Investment
Invested
Amount1
Realized
2
Value
Unrealized
3
Value
Total
4
Value
Multiple of Gross
Invested Amount5
Realized Investments
iPayment Investors LP
March-10
44.7
1.48
AerCap Funding I B.V.
April-10
24.8
35.2
35.2
1.42
McJunkin Corporation
August-10
17.9
21.8
21.8
1.22
Centro Properties Group_
November-10
15.7
22.3
22.3
1.42
Countrywide PLC
November-10
10.0
10.6
10.6
1.06
CMA Corporation Ltd (CMV AU)
March-11
34.2
51.5
51.5
1.51
Ally Financial Inc
August-11
18.2
22.3
22.3
1.23
September-11
25.3
25.9
25.9
1.02
Nine Entertainment Group Limited
Realized Toehold Investments
Total Realized Investments
30.2
176.3
76.8
253.1
44.7
234.3
79.5
313.8
234.3
1.33
Gross IRR6:
43.0%
Gross IRR6:
12.5%
79.5
1.03
313.8
1.24
6
Gross IRR :
39.2%
The preceding tables (the Investment Experience) comprise a composite of the investments made within the special situations strategy managed by KKR through KAM and its subsidiaries. KKR believes that these investments illustrate its general experience in managing special situations investments. The
Investment Experience includes investments held within client accounts having a dedicated allocation to the strategy. While certain client accounts that have participated in the strategy have not been included, for example because of their limited ability to participate in each investment made within the strategy
and/or differences in their structure, KKR has determined that investments made within the strategy are represented in the Investment Experience and that the exclusion of such accounts is not material. Such assessment involves significant judgment and may, however, differ from another partys review of
KKR-sponsored portfolios over the same period, which may include comparable investments not represented in the table with lower (or negative) investment returns. Composite or model performance information such as that reflected in the Investment Experience has many inherent limitations and is not
indicative of the performance of all investments made by KAM, nor is it fully representative of the performance of all investments that may have been made by the Funds if the Funds had been operating over the period during which the included investments were made.
The investments referenced in the Investment Experience were made over a period of time that may not include various market and macroeconomic cycles and the circumstances under which such investments were made may differ significantly from those under which the Funds will make their investments.
Furthermore, the investments included in the Investment Experience were not made as part of a single portfolio, but rather by separate, multi-strategy accounts, the investment programs of which, individually or on an overall basis, differ significantly from the Funds investment program, including by asset
class, investment size, geography, duration, leverage, risk and targeted returns. They should not, therefore, be viewed as representative of investments that will be made by the Funds or the profile of the Funds portfolio in general. In particular, it is currently anticipated that the Funds portfolio will include a
lower concentration of liquid, marketable securities and instruments than is currently represented in KKRs special situations portfolio (although this cannot be guaranteed). The Funds are the first dedicated vehicles formed by KKR to invest specifically in special situation investments. Prospective investors may
contact KKR to discuss the procedures and methodologies used to calculate the Investment Experience and other information provided herein.
36
Note: As of March 31, 2012. Please refer to slide 32 for important information regarding the investments included on this slide. Past performance of any KAM-sponsored fund, vehicle, account or investment referred to therein is
not necessarily indicative of future results and there can be no assurance that the Funds investments will perform similarly to those comprising the Investment Experience.
SPECIAL SITUATIONS PERFORMANCE (CONTINUED)

UNREALIZED INVESTMENTS
Investment
Date of
Name
Original Investment
Invested
Amount1
Realized
2
Value
Unrealized
3
Value
Total
4
Value
Multiple of Gross
Invested Amount5
Unrealized Investments
Harden Healthcare
84.6
1.36
Eddie Bauer, Inc.
March-10
April-10
35.1
20.4
19.7
40.1
1.14
Expro
July-10
38.1
2.9
41.5
44.4
1.17
Titan Europe PLC/Ireland
September-10
37.7
16.0
33.9
49.9
1.32
Avantha Power & Infrastructure Limited
September-10
48.2
4.6
49.3
53.9
1.12
General Motors Corp
November-10
36.1
1.1
29.9
31.0
0.86
Oriental Trading Company, Inc.
January-11
29.2
40.1
40.1
1.37
Kaupthing Hf
February-11
45.8
47.4
47.4
1.03
General Healthcare Group
February-11
65.5
3.6
56.4
60.0
0.92
Enterprise plc
March-11
32.3
2.0
39.3
41.3
1.28
Edcon Pty Ltd.
August-11
44.1
27.0
25.2
52.2
1.18
Bakkavor Finance 2 Plc
September-11
21.3
5.8
20.8
26.6
1.25
Infor Global Solutions Intermediate Holdings Limited

Centro Properties Group
September-11
September-11
30.2
28.2
1.3
5.0
38.0
22.8
39.3
27.8
1.30
0.99
Cemex
Masonite Worldwide Holdings
October-11
November-11
30.4
20.5
20.0
-
18.0
23.1
38.0
23.1
1.25
1.13
Quinn Group Limited
December-11
24.8
25.9
25.9
1.04
Fortune Creek Investment Limited
December-11
27.2
28.6
28.6
1.05
Travelport LLC
December-11
21.2
0.8
23.1
23.9
1.13
February-12
24.9
0.6
28.7
29.3
1.18
Brake Bros Ltd.
March-12
20.4
20.5
20.5
1.00
Eastman Kodak Company
March-12
25.5
0.8
25.9
26.7
1.05
New Enterprise Stone & Lime Co., Inc.
March-12
17.3
0.1
17.9
18.0
1.04
QMH Limited
Unrealized Toehold Investments
Total Unrealized Investments
Grand Total
Grand Total, adjusted for Recycled Capital
62.2
766.2
25.7
791.9
15.0
127.0
1.8
128.8
69.6
745.6
29.2
774.8
872.6
1.14
Gross IRR6:
16.8%
Gross IRR6:
29.3%
Gross IRR6:
17.2%
31.0
1.21
903.6
1,045.0
442.6
774.8
1,217.4
602.4
774.8
774.8
1.14
1.16
1.29
6
Gross IRR :
21.6%
Gross Hedged IRR7:
21.9%
Net Hedged IRR8:
15.3%
37
SPECIAL SITUATIONS PERFORMANCE (CONTINUED)

TOEHOLD INVESTMENTS
Investment
Date of
Name
Original Investment
Invested
Amount1
Realized
Value2
Unrealized
Value3
Total
Value4
Multiple of Gross
Invested Amount5
Realized Toehold Investments

American Safety Razor Company, LLC
1.1
1.10
September-10
7.1
6.8
6.8
0.96
October-10
0.4
0.4
0.4
1.00
Great Atlantic & Pacific Tea Co
November-10
5.2
3.0
3.0
0.58
Bank Of Ireland
November-10
7.1
7.2
7.2
1.01
February-11
3.4
3.7
3.7
1.09
Endemol B.V.
June-11
1.5
1.3
1.3
0.87
Sevan Marine ASA
June-11
6.2
5.1
5.1
0.82
Education Management
August-11
1.0
1.1
1.1
1.10
K Hovnanian Enterprises Inc
August-11
0.5
0.5
0.5
1.00
September-11
7.2
7.9
7.9
1.10
Capmark Financial Group Inc.
October-11
3.5
4.9
4.9
1.40
ConvaTec Healthcare
October-11
5.8
6.6
6.6
1.14
DFS Furniture Co LTD
October-11
3.7
4.1
4.1
1.11
Great Atlantic & Pacific Tea Company, Inc., The
October-11
3.0
3.1
3.1
1.03
GRND 1
October-11
9.4
10.1
10.1
1.07
TL Acquisitions, Inc.
October-11
0.9
1.2
1.2
1.33
Gymboree Corporation, The
November-11
2.1
2.5
2.5
1.19
Wind Acquisition Finance SA
November-11
7.8
8.9
8.9
1.14
CAID Holdings II Pty

iStar
Refresco
Nara Cable Funding
August-10
Total Realized Toehold Investments
1.0
76.8
1.1
79.5
79.5
1.04
Gross IRR6:
Unrealized Toehold Investments

CRC Health Group, Inc.
5.7
1.30
February-11
4.7
0.4
3.6
4.0
0.85
August-11
6.9
0.3
8.2
8.5
1.23
Catalina Marketing Corporation
February-12
9.4
8.5
8.5
0.90
Petroplus Refining & Marketing Limited
February-12
3.9
3.9
0.3
0.2
0.2
Barchester Healthcare Limited

ELAN Limited
Arcapita Bank BSC

Total Unrealized Toehold Investments
February-10
March-12
$
4.4
25.7
1.0
1.7
4.7
29.1
12.5%
0.67
30.8
1.20
6
Gross IRR :
29.3%
38
SPECIAL SITUATIONS PERFORMANCE (NOTES)

1. Unless otherwise specified, the Invested Amount with respect to each investment represents the equity amount of the original investment together with any related follow-on investments made
thereafter. Cash flows on which multiple and IRR calculations are based include all such investments as of the date made. The Invested Amount also includes investment transactions for which
settlement has not occurred as of March 31, 2012. Non-U.S. dollar investment information is presented using foreign exchange spot rates on the date of settlement of the relevant transaction or,
for interest payments and other cash receipts, date of receipt. For investments that have not settled as of March 31, 2012, foreign exchange spot rates on the related trade date are used. For cash
interest that is accrued but unpaid, foreign exchange spot rates on the reporting date are used.
2.Realized Value consists of principal and interest payments (including accrued but unpaid cash interest), dividends and proceeds from sales. Payment-in-kind interest is treated as realized upon
the realization of the principal amount.
3.Unrealized Value is estimated current value as of the applicable date. Valuations are determined in accordance with KAMs valuation policy, which provides that: (i) quoted market prices in
active markets are the best evidence of the fair value of a financial instrument; and (ii) if quoted market prices in active markets are not available, fair value may be estimated using a variety of
methods depending on the nature of the instrument and the manner in which it is traded. KAMs estimates of fair value are undertaken in good faith and based on the consistent application of a
variety of factors, with the objective being to determine the value that would be received upon the sale of the instrument or paid to transfer the instrument in an orderly transaction between market
participants at the relevant measurement date. Results include all write-downs and realizations.
The actual realized returns on unrealized investments will depend on, among other factors, actual default rates, future operating results and cash flows, the ability to make coupon payments when
due by the portfolio companies, the value of investments and market conditions at the time of disposition, legal and contractual restrictions on transfer that may limit liquidity, any related
transaction costs, the performance of equity securities, the actual amount, cost and other terms of leverage and the timing and manner of disposition of investments, all of which may differ from the
assumptions on which the valuations used in the prior performance data contained herein are based. Accordingly, the actual realized return of unrealized investments may differ materially from the
returns indicated herein. Prospective investors should note that the performance of the investments shown in the Investment Experience may differ from the performance of such investments
reported to investors in the applicable accounts in which the investments were actually made as a result of the differing procedures and methodologies used to create the Investment Experience,
including conventions adopted for consistency of presentation among investments included in the Investment Experience, such as frequency of cash flows for computing Gross IRRs (i.e., monthly vs.
annually vs. quarterly), IRR methodology (i.e., time-weighted vs. dollar-weighted) and the effects of currency gains and losses.
4.Total Value is computed as the sum of Realized Value plus Unrealized Value.
5.Multiple of Gross Invested Amount is computed as the Total Value divided by the Invested Amount.
6.Gross IRR means the aggregate, annual, compound, gross internal rate of return on investments. Internal rates of return are computed on a dollar-weighted basis, which takes into account
the timing of cash flows, the amounts invested at any given time and unrealized values as of the relevant valuation date. The aggregate Gross IRR for the Investment Experience is a hypothetical
Gross IRR given that the investments included therein were not made as part of a single portfolio, but rather by a composite of accounts managed by KAM. Gross IRRs do not reflect management
fees, carried interest, taxes, foreign exchange derivative contracts, credit default swap transactions, and transaction costs in connection with the disposition of unrealized investments, organizational
expenses and other expenses to be borne by investors in the Funds, which will reduce returns and in the aggregate are expected to be substantial. See Section IX, Summary of Principal Terms for
more information on such expenses. A general summary of such fees and carried interest is also included in Part 2 of Form ADV maintained by KAM, a copy of which will be furnished upon request.
Values shown for non-U.S. dollar investments are derived using foreign and U.S. currency spot rates at the time of valuation. Foreign exchange conversions are embedded within the calculations.
In addition, certain positions may include a forward contract as a hedging instrument. Such contracts have been excluded from the relevant position data and, instead, currency hedging is
presented at the overall portfolio level.
7.Gross Hedged IRR is consistent with the definition of Gross IRR above, but is inclusive of foreign exchange derivative contracts and credit default swap transactions.
8.Net Hedged IRR is consistent with the definition of Gross Hedged IRR, but is also inclusive of management fees, miscellaneous Fund expenses, including organizational expenses and carried
interest. Management fees have been offset by 100% of transaction fees received by KAM or its subsidiaries from portfolio companies. Certain assumptions which KKR believes to be reasonable
have been made as to organizational and other Fund expenses. Actual expenses incurred by the Funds may be higher and actual transaction fees may be lower than those reflected in the
Investment Experience, which will reduce net returns generated by the Funds.
9.Distributions to Fund investors representing a return of capital, income and gains (Investment Proceed Distributions) are recallable during the Funds Investment Period. The adjustment for
recycled capital reflects a reduction of the total Invested Amount by the amount of Investment Proceed Distributions made, excluding the current ending liquidation date. The adjustment results in
a corresponding reduction of the total Realized Value.
39
III.1 KKR Credit Relative Value
KKR CREDIT RELATIVE VALUE
41
KKR Credit Relative Value (KCRV) is a new strategy within KAM, offering:
Clients a new liquid product with a targeted stable return profile
Provides a product that is not market directional which diversifies KAMs credit business
Opportunity to diversify and scale our hedge fund platform
Allows us to express investment views already being developed by KAM credit and equity analysts
KCRV will focus on capturing returns from mispriced credit risk and will target relatively low exposure to
credit markets which will diversify KAMs overall credit exposure
Investible universe will include investment and non-investment grade credit and credit linked
instruments, primarily in developed countries
Trade construction will be driven by fundamental analysis of a company, industry or asset class
followed by the development of the optimal way to express the view
Trades will fall under the following strategies: curve trades, fundamental trades, capital structure
arbitrage, basis trades, and index trades
The strategy is targeted to:
Utilize fundamental analysis to arrive at primary view
Incorporate both position and portfolio level hedges
Be able to provide sufficient liquidity for investors
Provide stable return profile
Division
KKR CREDIT RELATIVE VALUE (contd)
Several of KKRs competitors have built meaningful businesses in long/short credit and our LP investors are
increasingly interested in credit hedge funds as part of their alternatives allocation
After a period of portfolio development and systems testing, we went live with this strategy on July 1st
Initially, KCRV is funded with $50 million from KKRs balance sheet. This seed capital will allow KCRV to
develop a track record before commencing third-party fundraising in early-2013
Scott Henkin, formerly a portfolio manager in a similar strategy at DE Shaw, joined the firm earlier this summer
to lead KCRV trade and portfolio construction
This strategy will also allow KKR to access existing and new LP allocations for more liquid strategies
Scott is well-integrated with the rest of the KAM strategies and leverages ideas and analysis from both
equity and credit analysts
Credit Relative Value is a scalable long / short credit platform, which we estimate could be $2 billion+
at maturity, with an investment approach that leverages our existing personnel, credit expertise, and
infrastructure
Strategy Parameters
Expected Level
Limit
Long Positions (% of Capital)
[3-4%]
[7%]
Short Positions (% of Capital)
[3%]
[5%]
# of Core Investments
20-40
[ TBU ]
10%-15%
N/A
<8%
[ TBU ]
[10-15% per industry]
[30% per industry]
[70-80% North America]
[50% International]
[1x]
[3x]
[+/- 20%]
[+/- 50%]
Target Gross Returns

Target Volatility
Industry Concentration
Geographic Exposure
Leverage (Long + Short)
Net Exposure
Liquidity
42
Quarterly on 45 days notice; 25% investor level gate if fund

redemptions exceed 25% of the fund
Division
III.2 KKR Equity Strategies
KKR EQUITY STRATEGIES EXECUTIVE SUMMARY

Long / short equity strategy focused on the Americas
Established Strategy
Flexibility to include other equity-oriented investment strategies, and in particular, event-driven and
capital structure arbitrage strategies if attractive risk-adjusted equity returns can be found (max
credit exposure generally below 20%)(1)
Consistent approach with former investment experience
Led by Robert Howard, former Head of Goldman Sachs Principal Strategies (GSPS) Americas
Experienced Team
16 years of financial markets experience, including 11 years of portfolio management expertise
Continuity of 11-person core investment team that worked together in GSPS Americas
Investment process driven by fundamental research and a one-team collaboration honed over 15
years as part of GSPS
Demonstrated Approach
Enhanced by KKR
Resources
Top-down, macro-driven overlay complemented by bottom-up, in-depth fundamental analysis

performed on individual companies
Flexible geographic approach with a primary focus on the U.S. and an ability to make opportunistic
allocations to Canada and Latin America (targeted LatAm exposure: 025%)(1)
Integration with KKR, including access to KKRs global sourcing and knowledge network(2)
Disciplined Risk
Management
Disciplined portfolio hedging and rigorous risk management on both the aggregate portfolio and
individual strategy level
Continuity and integration of previous risk management approach from GSPS into KKRs existing
risk organization
Information regarding KKR Equity Strategies (KES) is provided for discussion purposes only. Therefore, the estimates provided herein, including target allocations, caps, and exposures, are subject to change.
44 (1)
these estimates will be achieved, and actual allocations, caps, exposures, and other estimates may be significantly different than that shown here.
There is no assurance that
(2) Please refer to "Important Information" on page 1 for further information on KKR's inside information barrier policies and procedures, which may limit the involvement of personnel in certain investment processes and discussions.
Division
KES INVESTMENT TEAM

Senior members of the KES investment team have 17 years of average industry experience and 10 years average
experience
with GSPS and KKR.
Robert Howard
Head of KES
Investment
Team
Trading
Risk
Strategist
Ralph Marron
Ami Goldfein
Omar Kara
Jason Muenzen
Daniel Henriques
Antoine Chiche
Atul Joshi
Vinesh Motwani
Yi Gu
Alex Nicolau
Head of Operations: Ben Dominguez
Legal/Compliance Team
45
Client and Partner Group: John Massad
Broader KAM Platform

50+ Credit Investment Professionals
Established Risk, Operations, and

Technology Infrastructure
Division
WHY KES TEAM CHOSE KKR?

KKR platform complements the KES strategy.
Critical Factors Driving

Teams Decision
Retail
Energy &
Consumer
Infrastructure Products
Industrials Technology
Health
Care
Financial
Services
Media
& Telecom
Ability to keep team

together
$100mm of KKR capital
Existing operational
infrastructure
Global marketing
presence
~150 dedicated
investment
professionals;
$46.0bn AUM(1)
Private
Markets
Public
Markets
~60 dedicated
investment
professionals in
KAM; $16.3bn
AUM(1)
Global Integration
Cultural alignment
Idea Sharing
Top-tier Wall Street

access
Legal/Compliance
Enhanced alpha
generation
~30 Senior Advisors
who are current and former
leaders of major global
corporations and public
agencies
~60 KKR Capstone operational
experts focused on diligence
and portfolio company
performance
46
Operational
Expertise
Portfolio
Companies
~75 actively
managed
portfolio companies
~$210bn of annual
revenues
~900,000
employees
Note: Please refer to "Important Information" on page 1 for further information on KKR's inside information barrier policies and procedures, which may limit the involvement of
personnel in certain investment processes and discussions.
(1) As of March 31, 2012.
Division
KES PORTFOLIO CONSTRUCTION & RISK MANAGEMENT(1)

Position- and portfolio-level
hedges
Long / short equities

Americas
Opportunistic in credit
Strategy
Focus on liquidity (mid- and

large-cap companies)
Typical volatility: <10%
Long / short investment ideas
Opportunistic in new issues(2)

Risk Management
Portfolio Construction(1)
Focus on equity returns with low volatility
Typical gross exposure: ~200% (range: 100

300%)
Cap on industry exposure: ~20%
Typical net exposure: ~30% (range: 050%)

Targeted LatAm exposure: 025%
Re-creation of risk reports, hedging tools,

and screens
Max credit exposure generally below 20%
Focus on portfolio diversification
3060 total portfolio positions
KKR risk infrastructure
58 positions per analyst
Use of options and tail hedges
1530 Core
Emphasis on:
Gross / net exposures
Highest conviction trades (~7080% of GMV)

Expected core size = 37% AUM (long);
24% AUM (short)
Beta-adjusted exposures Volatility

Core
25 Core per analyst
Expected feeder size = 12% AUM

25 Feeder per analyst
Greeks
Shock scenarios
1530 Feeder
Beginning feeder trades (~2030% of GMV)
Correlations
Feeder
Index explosion
Hedge
structure
Crowded
trades
Liquidity
profile
(1) Information regarding KKR Equity Strategies (KES) is provided for discussion purposes only. Therefore, 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 actual allocations, caps, exposures, and other estimates may be significantly different than that shown here.
Prices of securities bought in an initial public offering (IPO) may rise and fall rapidly, often because of investor perceptions rather than economic reasons. To the extent a fund is small in size, its IPO
47(2)
investments may have a significant impact on its performance since they may represent a larger portion of the funds overall portfolio as compared to the portfolio of a larger fund.
Division
HEDGING PHILOSOPHY
We proactively size our positions based on various factors including liquidity, risk return, potential loss, quality of the
hedge, and
portfolio diversification.
INVESTMENT IDEAS
Hedging at the
strategy level
POSITION
HEDGES
Hedging at the
portfolio level
AGGREGAT
E
POSITIONS
Seeks to
eliminate
undesired risks
Risks we want
Risks we manage
Risks we dont want
48
PORTFOLIO
HEDGES
PORTFOLIO
Division
LIFE CYCLE FOR TYPICAL INVESTMENT STRATEGY

The entire investment and risk management process is supported by structured and ad-hoc team interaction. The highest
conviction ideas scale up to core positions, and the portfolio represents a mix of core and feeder positions.
POSITION
SIZE
PM / Analysts
Position
work together on write-up
position initiation distributed;
becomes
feeder
position
Further diligence or
market dislocation
supports upsizing
position to core
position
Active trading
based on market
moves to seek to
capture profits and
manage risk
Investment thesis
plays out and / or
changes. Position
reduced /
exited over time
Name and
position
monitored for
new catalyst
opportunities
Ramp up
Exit
TIME
CONTINUOUS DIALOGUE BETWEEN PM, ANALYSTS, AND BROADER KKR TEAM MEMBERS
MORNING MEETING: DAILY
INVESTMENT MEETING: WEEKLY
To review relevant macro and

micro developments
impacting investments and
recap
previous days trading prior
to market open
Investment team, KAM senior

management, and risk team
meet to review portfolio
construction, exposures, risk
limits, and R&D
MACRO MEETING: WEEKLY
To discuss relevant macro

takeaways from primary
research, management team
interactions, and events to
debate broader implications
on the portfolio
PORTFOLIO REVIEW: MONTHLY
To review and discuss

monthly performance, risk
assessment, portfolio
analytics and dissect sectors
and / or positions driving the
portfolio
Please refer to "Important Information" on page 1 for further information on KKR's inside information barrier policies and procedures, which may limit the involvement of personnel in certain
49 Note:
investment processes and discussions.
Note: Portfolio manager may use all or some of the techniques described herein or any other techniques that he deems reasonable.
Division
INVESTMENT PRINCIPLES
KES seeks to achieve consistent and attractive returns, with low volatility and limited market correlation.
We believe that strong performance...

Begins with the preservation of capital. Differentiated performance requires
attractive returns with less-than-commensurate risk exposure
Is built upon the fundamental analysis of situations where our global
resources give us a competitive advantage
Necessitates constant vigilance of the macro environment in an ever more
interconnected world
Requires a diversity of views and honesty about what we dont know
Means investment decisions are made based on facts and without emotion
Has, at its foundation, one team with aligned incentives
50
Division

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KKR Asset Management

CONFIDENTIAL AND PROPRIETARY

Direct Hedge Fund Strategy

Erik Falk / Bob Howard

KKR BUSINESS PLATFORM

Public Markets / KAM

Capital Markets & Principal Activities

~30 senior industry

Share best practices

Provides global network

Work side-by-side with

Client and Partner

KKR ASSET MANAGEMENT (KAM) OVERVIEW

Special Situations (Focus

Bank Loans Plus High Yield

KAM AUM by Strategy(1)

Long / Short Equity

Separately Managed Accounts

KAM INVESTMENT TEAM STRUCTURE

KKR Private Equity

KKR Public Affairs, IT, Legal / Compliance, etc.

Mezzanine Investment Analyst

Private Credit Investment Analyst

Co-Head of Leveraged Credit

Public Equities Investment Analyst

Head of Credit and Mezzanine

Industry Credit Investment Analyst

Head of Public Equities

KKR Credit Relative Value

Public Equities Investment Analyst

Industry Credit Investment Analyst

Head Public Equities Trader

Client Portfolio Management (Equity Strategies)

Special Situations Investment Analyst

Head Credit Trader

Co-Head of Leveraged Credit

Mezzanine Investment Analyst

Business Unit Head

Client Portfolio Management (Credit Strategies)

Co-Head of Special Situations

Industry Credit Investment Analyst

Co-Head of Special Situations

KAM INVESTMENT PHILOSOPHY

KAMs team has long-standing relationships

KKR is a valued client to Wall Street and

KAMs Direct Lending, Mezzanine and

KAMs team leverages the full KKR network:

We appreciate that our investors have

Each investment decision is predicated on

KAM recognizes that credit investing comes

KAM Investment Committee (IC)

KAM will only invest in a credit once its

Re-evaluate and re-underwrite each credit

Active portfolio management process

Each approved name is re-underwritten

KAM INVESTMENT PROCESS

KAM Investment Approval Process

CREDIT INVESTMENT STRATEGIES

Marketable Securities Division

Alternative Investments Division

Bank Loans Plus

Directly sourced mezzanine financings

Dynamic allocations to bank loans, high yield,