2011 KKR Investor Day

March 15, 2011

2

This presentation is prepared for KKR & Co. L.P. (NYSE: KKR) for the benefit of its public unitholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR & Co. L.P. and its consolidated subsidiaries (collectively, “KKR”). Any discussion of specific KKR entities is provided solely to demonstrate such entities’ role within the KKR organization and their contributions to the business, operations and financial results of KKR & Co. L.P. This presentation is not and shall not be construed as an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities, any investment funds, vehicles or accounts, any investment advice, or any other service by any KKR entities, including Kohlberg Kravis Roberts & Co. L.P., KKR Asset Management LLC or KKR Capital Markets LLC. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by KKR or its advisors.

This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by KKR & Co. L.P.

This presentation contains certain forward-looking statements pertaining to KKR, including certain investment funds, vehicles and accounts that are managed by KKR. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These forward-looking statements are based on KKR’s beliefs, assumptions and expectations of future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to assets under management, fee paying assets under management, fee related earnings, economic net income, committed dollars invested, uncalled commitments and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: the general volatility of the capital markets; failure to realize the benefits of or changes in KKR's business strategies; availability, terms and deployment of capital; availability of qualified personnel and expenses of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR’s competition. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long-term and financial results are subject to significant volatility.

Additional information about factors affecting KKR, including a description of risks that may be important to a decision to purchase or sell any common units of KKR & Co. L.P., can be found in KKR & Co. L.P.’s Annual Report on Form 10-K filed with the SEC and its other filings with the SEC, which are available at www.sec.gov.

The statements contained in this presentation are made as of March 10, 2011, unless another time is specified in relation to them, and access to this presentation at any given time shall not give rise to any implication that there has been no change in the facts set forth in this presentation since that date. All financial information in this presentation is as of December 31, 2010 unless otherwise indicated. Certain information presented in this presentation have been developed internally or obtained from sources believed to be reliable; however, KKR does not give any representation or warranty as to the accuracy, adequacy, timeliness or completeness of such information, and assumes no responsibility for independent verification of such information.

For additional important information, please see the section entitled “Important Information” located in Appendix III at the end of this presentation.

Legal Disclosures

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Table of Contents

Presentations Page Number

Welcome 4

Introduction 7

Private Equity Overview 13

North American Private Equity 32

European Private Equity 45

Asian Private Equity 56

Driving Value 71

Energy & Infrastructure 87

Global Public Affairs 109

Business Development & Strategy 117

KKR Asset Management 128

KKR Capital Markets 144

Client & Partner Group 159

Financial Overview 172

Positioning KKR for the Future 186

Appendices

Appendix I: Supplemental Financial Information 202

Appendix II: Speaker Biographies 214

Appendix III: Important Information 224

4

Welcome

5

-20%

0%

20%

40%

60%

80%

100%

9/30/2009 12/30/2009 3/30/2010 6/30/2010 9/30/2010 12/30/2010

Pe

rfo

rma

nce

Sin

ce

KP

E T

ran

sa

cti

on

Unit Price Performance Since KKR/KPE Combination

KKR Public on Euronext

KKR Relists on NYSE

KKR Total Return(1): 88% SPX Total Return: 26%

Note: Stock price performance as of 3/10/2011. Past performance is no guarantee of future results. See Important Information for additional disclosures.(1) Incorporates dividends paid up to 3/10/2011.

% P

rice

Perf

orm

an

ce

6

Time Presentation Presenter(s) Location

8:00 AM WelcomeScott C. NuttallGlobal Head of Capital and Asset Management Cotillion Room

8:05 Introduction George R. Roberts and Henry R. KravisCo-Founders, Co-Chairmen, and Co-CEOs Cotillion Room

8:35 Private Equity Overview Alexander NavabCo-Head of North American Private Equity Cotillion Room

8:50 North American Private Equity Michael W. MichelsonCo-Head of North American Private Equity Cotillion Room

9:05 European Private Equity Johannes P. HuthHead of KKR Europe Cotillion Room

9:20 Asian Private EquityJoseph Y. BaeHead of KKR Asia Cotillion Room

9:35 Driving Value Dean B. NelsonGlobal Head of KKR Capstone Cotillion Room

10:05 Break Regency Room

10:25 Energy & Infrastructure Marc S. LipschultzGlobal Head of Energy and Infrastructure Cotillion Room

10:55 Global Public AffairsKenneth B. MehlmanGlobal Head of Public Affairs Cotillion Room

11:10 Business Development & Strategy Scott C. NuttallGlobal Head of Capital and Asset Management Cotillion Room

11:30 KKR Asset Management William C. SonnebornGlobal Head of KKR Asset Management Cotillion Room

12:15 PM Lunch Wedgwood Room

1:20 KKR Capital Markets Craig J. FarrGlobal Head of KKR Capital Markets Cotillion Room

1:50 Client & Partner Group Suzanne O. DonohoeGlobal Head of the Client & Partner Group Cotillion Room

2:20 Financial Overview William J. JanetschekChief Financial Officer Cotillion Room

3:05 Break Regency Room

3:25 Positioning KKR for the Future Todd A. FisherChief Administrative Officer Cotillion Room

3:55 Q&A Management Team Cotillion Room

5:00 Cocktail Reception Wedgwood Room

Agenda for the Day

7

Introduction George R. Roberts

8

Introduction Henry R. Kravis

9

$4.8 bn of investments

Our Reporting Segments

$46 bn AUM

• Private Equity

• Natural Resources

• Infrastructure

$15 bn AUM

• Liquid Credit

• Mezzanine

• Special Situations

• Equity Strategies

Public MarketsPrivate Markets Capital Markets & Principal Activities

• Capital Markets

• Balance Sheet

Note: Figures as of 12/31/2010. See Important Information for our calculation of assets under management.

10

How Unitholders Participate in Our Success

• Substantial upside opportunity from profit participation

Carried Interest

• Significant recurring portionFee Related Earnings

• Substantial upside opportunity from 100% of investment gains

Balance Sheet Investment Income

11

Prospects for Growth k

Evolving and Growing Building and Scaling

Liquid CreditMezzanine/

Special Situations

Natural Resources/

InfrastructureLong/Short Equity

Private Equity

12

Macro Trends Augmenting Our Opportunities

More dollars allocated to alternatives

Investors seeking return

Consolidation of general partner

relationships

13

Private Equity Overview Alexander Navab

14

• Biggest investor in our own funds and deals with over $6 bn invested or committed(2)

• Vast global sourcing network

• Substantial resources in operations, capital markets, and stakeholder management, plus senior advisors

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

• 2.4x gross MOIC, 26% gross IRR, and 20% net IRR on fully invested funds(1)

• S&P 500 outperformance of 7.6% on a net basis across 16 private equity funds raised since firm’s inception

Private Equity Overview

• 34 years, 185+ investments, $49+ bn of equity deployed

• Highly experienced investment team

• $28 bn raised across last fundraising cycle with $11+ bn dry powder today

Leading Global Franchise

Strong Historical Returns

Distinctive Strategy and Resources

Aligned with Investors

Note: Data as of 12/31/2010. Past performance is no guarantee of future results. See Important Information for details regarding returns and indices.(1) Fully invested funds include the 1976 Fund through the European Fund II.(2) Includes over $5 bn of balance sheet capital invested in or committed to our funds and transactions and $1 bn of personal investments by KKR

principals.

15

Global franchise with $45 bn in AUM

• Over $11 bn in dry powder

Growing Private Equity AUM

$14.4 bn$19.7 bn

$31.9 bn$36.5 bn

$31.8 bn

$38.8 bn$44.8 bn

2004 2005 2006 2007 2008 2009 2010

Invested Dry Powder

21% CAGR

Note: See Important Information for our calculation of assets under management.

16

Deep, tenured team with extensive experience

• Private Equity Investment Committee: over 30 years average industry

experience per member for a total of nearly 250 years of experience

• Members, Managing Directors, Directors: 22 years average experience

• KKR Capstone: founded in 2000; deep operational/managerial experience

• Additional resources: 30 senior advisors globally; stakeholder

engagement through Global Public Affairs; capital markets expertise

through KKR Capital Markets

Decades of Experience—and Decades Investing Together

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

63125 138

3159

18

2005 2007 2010Private Equity Investment Professionals KKR Capstone

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(1) Examples include, among others, the largest completed North American buyout (Energy Future Holdings), European buyout (Alliance Boots), and South Korean buyout (Oriental Brewery).

History of Innovation and Creativity

First Billion-Dollar Buyout

First Public Company Buyout by Tender Offer

Largest Buyouts Across Many RegionsWorldwide(1)

Pioneer in Complex Industries

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26% gross and 19% net IRRs since 1976 inception

• Outperformed S&P 500 by ~8% on a net basis• 3.3x multiple of invested capital for realized/partially realized investments(1)

• No fully realized funds have returned less than a 2.0x multiple of capital

Strong Historical Performance

Note: Data includes all private equity funds since inception. Past performance does not guarantee future results. See Important Information for additional disclosures.

(1) Capital invested and value realized are based on fully realized investments, the realized portion of partially realized investments, and written-off investments through 12/31/2010. Value realized does not include dividends received from companies where KKR has not sold any portion of its original equity.

$19 bn

$64 bn

Capital Invested Value Realized

3.3x

Realized/Partially Realized(1) All Investments

$49 bn

$98 bn

Capital Invested Total Value

2.0x

95 companies 152 companies

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Performance in Periods of Dislocation

Period

3-Year % Change in S&P 500

KKR Net IRR

S&P 500 IRR

KKROutperformance

2008-2010 -0.8% 16.0% 7.3% 8.7%2007-2009 -3.8% 2.3% -1.3% 3.6%2006-2008 -7.1% 0.5% -1.3% 1.8%2005-2007 6.7% 2.8% -1.0% 3.8%2004-2006 8.5% 17.3% 2.4% 14.9%2002-2004 4.0% 37.9% 7.6% 30.3%2001-2003 -3.3% 26.1% 7.5% 18.6%2000-2002 -15.5% 15.6% 2.7% 12.9%1999-2001 -1.2% 6.4% -0.6% 7.0%1992-1994 3.3% 19.0% 14.9% 4.1%1990-1992 8.1% 6.0% 11.9% -5.9%1986-1988 9.7% 29.7% 13.0% 16.7%1981-1983 7.4% 28.0% 18.4% 9.6%1979-1981 9.5% 25.1% 18.1% 7.0%1977-1979 0.6% 32.9% 15.9% 17.0%

“Great Recession”

9/11 & corporate scandals

(e.g., Enron, WorldCom)

Largest one-day

percentage drop in DJIA

(1)

Note: The table above presents net internal rates of returns calculated as of 12/31/2010 for KKR private equity investments that were made during three- year periods in which the S&P 500 returned less than 10%. 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 valuation date. KKR Net IRR is calculated after the general partner’s profit participation. Past performance is no guarantee of future results. Please see Important Information for additional disclosures.

(1) Market indices include dividends reinvested. The market index returns assume that on the day a portfolio investment is made, a hypothetical investment in a matching amount is made in the given index. For each date on which either a portion or all of the portfolio investment is sold, a hypothetical index multiple (factor) is calculated by comparing the change in index value between the two dates. The cost of the investment sold (or portion of cost sold) is multiplied by this factor, resulting in a hypothetical index value. The return is calculated using these dates of investment and hypothetical value(s) generated.

20

Portfolio Built on Patient, Selective Investing

~900 investments evaluated in 2010

Prioritization by industry team

~320 investments discussed at Investment Committee(1)

Iteration with Investment Committee and involvement of KKR

Capstone, Capital Markets, Public Affairs

Industry expertise KKR relationships

16 completed(2)

Thoughtful investment process means a small fraction of evaluated investments are made

Note: Data represents global private equity deal flow for 2010; includes a small number of opportunities related to infrastructure transactions.(1) Most investments are presented to the Investment Committee numerous times throughout the diligence process; however, this count includes each

unique investment opportunity once and does not include subsequent presentations.(2) Includes transactions announced or closed in 2010.

Other business lines Senior advisors

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Sourcing Network Leads to Unique Opportunities

Strong reputation, decades of relationship-building, and resources valued by management teams yield investments not available to others

Auction17%

Proprietary48%

Limited Process(1)

35%

Note: Data in the chart above reflects all private equity investments announced or completed from the inception of the Millennium Fund in 2002 through 2010.(1) Limited process is defined as three or fewer parties, including KKR.

22

Expertise Across Transaction Sizes

Over 90% of our 185+ private equity transactions have had transaction values less than $5 bn; ~80% less than $2 bn(1)

(1) Includes announced and completed transactions from inception to 12/31/2010.(2) Reflects portfolio as of 12/31/2010.

All Transactions by Enterprise Value(1) Current Portfolio by Type(2)

$1-2 bn16% <$1 bn

64%

$2-5 bn11%

$5-10 bn3%

$10-20 bn3%

>$20 bn3%

Small to Medium Buyout(<$5 bn)

50%

Large Buyout(>$5 bn)

21%JV/Growth/Structured Equity

29%

23

Modern Dairy

Global Portfolio

62 Companies~$200 bn in

Aggregate Annual Revenue

~900,000 Employees 15 Industries 18 Countries

HilcorpResources

Bharti Infratel

Note: Portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction. Excludes Weld North and RPM Energy Partners, two companies to which KKR has committed capital but which have not yet been funded.

KKR Debt Investors

TC Energy

24

Note: Includes all portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction. Data for last 12 months ended 12/31/2010 except for portfolio companies with publicly traded securities which have non-calendar fiscal years, in which case last 12 months’ data as of the latest reported fiscal quarter is shown. Data not included for CICC, Dalmia Cement, El Paso Midstream, Hilcorp Resources/TC Energy, KKR Debt Investors, Rundong Auto Group, Tianrui, VATS, and Visma either because these are recent investments/data is not available or because metrics are not relevant. Past performance is no guarantee of future results.

$33 bn

$38 bn

2009 2010

Strong Operating Performance at Portfolio

$191 bn

$204 bn

2009 2010

Aggregate Portfolio Revenue Aggregate Portfolio EBITDA

7%

15%

25

Focus on Capital Structure

Aggregate Portfolio Deleveraging

Leverage reductions driven by increased cash flow, debt paydown, and refinancings

5.5x

4.8x

2009 2010

-14%

• $46 bn refinanced across global KKR portfolio in 2009 and 2010

• ~80% of portfolio maturities due in 2014 and thereafter

Note: Chart reflects net debt/LTM EBITDA for all portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction. As of 12/31/2010 except for public portfolio companies with non-calendar fiscal years, in which case data as of the latest reported fiscal quarter is shown. Data not included for CICC, Dalmia Cement, El Paso Midstream, Hilcorp Resources/TC Energy, KKR Debt Investors, Rundong Auto Group, Tianrui, VATS, and Visma either because these are recent investments/data is not available or because metrics are not relevant. Past performance is no guarantee of future results.

26

Our Post-Investment Approach: Drive Value

Global Resources

Drive ValueKKR

Capstone• 100-Day Plans• Active value creation

KKR Capital Markets

• Acquisition financing and syndication assistance• Exit and strategic refinancing plans

Global Public Affairs

• Active management of responsibilities to stakeholders

Industry Expertise

• Extensive understanding• Strong networks

Portfolio Management

• Oversight and monitoring• Experienced senior advisors

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Recent Momentum

$3.1 bn

$1.4 bn

$3.2 bn

2008 2009 2010

LP Dollars Invested(1) Cash Back to LPs

$0.5 bn$0.8 bn

$3.6 bn

2008 2009 2010

(1) Limited partner private equity dollars invested, including follow-on investments. Excludes bridge and recyclable capital. See Important Information for additional disclosures.

(2) The general partner of the 1996 Fund was not contributed to KKR in the Combination Transaction, and KKR will not benefit from its investment returns.

2010 Increases in Fund Values Relative 2010 Performance33%

15%

KKR PE Funds Gross S&P 500

47% 48%

26%

39%

29%

51%

2%

19

96

Eu

rop

ean

Mil

len

niu

m

Eu

rop

ean

II 20

06

Asia

n

Eu

rop

ean

III

(2)

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Monetization Events Continuing in 2011

IPO Secondary Strategic Sale

Tianrui(1) Avago Nielsen Maxeda(2) DSD Seven Media(1) Legrand HCA

Note: Past performance is no guarantee of future results. Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical. Distributions from certain of these transactions may not generate distributable cash carry to KKR unitholders.

(1) Partial sale.(2) Strategic sale of Fashion division.

Over $2 bn in limited partner distributions from 2011 activity

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We are optimistic about the current deal environment

• Off to a strong start with investments made in the last three years

Post-Recession Story Playing Out

New Investments, 2008 to 2010(1)

(1) As of 12/31/2010. Includes all initial and follow-on investments made in transactions completed between 1/1/2008 and 12/31/2010; does not include any follow-ons in transactions whose original investment occurred prior to 1/1/2008. Past performance is no guarantee of future results. See Important Information for details regarding return calculations.

$9.1 bn of value

$6.8 bn of equity invested

1.3x gross MOIC

21% gross IRR

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Significant Levers for Continued Growth

• Successor funds to each regional fund

• North America

• Asia

• Europe

• Strategy-specific funds capitalizing on market trends

• China Growth

• Exploring opportunities in Latin America

Meaningful Regional Successor Funds

Strategy-Specific Funds Regional Expansion

Proven record of developing our business to capture increasing volume of investment activity and better serve our investors

31

Well Positioned to Capitalize on a Strong PE Environment

Great opportunity for KKR in private equity

• Long history of innovation and growth

• Proven team

• Strong returns

• Differentiated approach

• World-class portfolio

• $11+ bn of dry powder

• Strong and accelerating momentum

• Recovering economy

• Open credit markets

• Strengthening equity markets

• Attractive fundamentals for private equity on a

global basis

32

North American Private Equity Michael W. Michelson

33

Experience and

Results

Resource Depth and Breadth

Attractive Environment

Bright Prospects in North America

34

Deep team of 89 investment and operating professionals with $25 bn of AUM

• More than three decades of experience investing in North America

• Extensive additional resources through KKR Capital Markets, Global Public Affairs, senior advisors, and the Client & Partner Group

North American Private Equity Team

Note: As of 12/31/2010. KKR Capstone is owned and controlled by its senior management and not KKR.

3649 58

23

31

12

2005 2007 2010

North American PE Investment Professionals North American KKR Capstone Team

35

• Facilitates in-depth industry knowledge and a network of industry experts

• Enables us to create proprietary investment opportunities

Deep Industry Expertise

Consumer Products

Energy & Infrastructure

Financial Services

Industrials

Healthcare

Media & Communications

Retail

Technology

• Helps identify trends early so we can capitalize on emerging investment themes

• Allows us to see value creation opportunities others do not

Note: Portfolio companies identified above may not be representative of the entire portfolio.

36

Sourcing Model

>70% of opportunities reviewed at IC were proprietary or limited

process(3)

Note: Data represents North America private equity deal flow for 2010; includes a small number of opportunities related to infrastructure transactions. Pie charts based on all opportunities evaluated.

(1) Most investments are presented to the Investment Committee numerous times throughout the diligence process; however, this count includes each unique investment opportunity once and does not include subsequent presentations.

(2) Includes transactions announced or closed in 2010.(3) Limited process is defined as three or fewer parties, including KKR.

~450 North American investment opportunities evaluated in-depth in 2010~200 discrete opportunities

discussed with the PE Investment Committee(1)

5 investments committed toor closed(2)

By Sourcing By Size By Industry

Proprietary orLimited Process

71%(3)

Auction29% $1-5 bn

44%

>$5 bn11%

<$1 bn45%

Financials9%

Other 4%

Retail10%

Healthcare11%

Consumer11%

Tech12%

Media & Comm.23%

Infra 3%Industrial 7%

Energy10%

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Current North American Private Equity Portfolio

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results from these companies may not be typical.(1) North American portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination

Transaction. Excludes Weld North and RPM Energy Partners, two companies to which KKR has committed capital but which have not yet been funded.

Strong portfolio of world-class franchises(1)

TC Energy

KKR Debt Investors

HilcorpResources

38

Portfolio Performance Driven by Strong Operations Team

$122 bn

$125 bn

2009 2010

Aggregate Revenue Aggregate EBITDA

3%

Note: Includes all North American portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction. Data for last 12 months ended 12/31/2010 except for portfolio companies with publicly traded securities which have non- calendar fiscal years, in which case last 12 months’ data as of the latest reported fiscal quarter is shown. Data not included for El Paso Midstream, Hilcorp Resources/TC Energy, and KKR Debt Investors either because these are recent investments/data is not available or because metrics are not relevant. Past performance is no guarantee of future results. See Important Information for additional disclosures.

(1) Reflects net debt/LTM EBITDA.

Aggregate Leverage(1)

$22 bn

$24 bn

2009 2010

6.0x

5.5x

2009 2010

10%-9%

~70% of portfolio companies increased revenue

~85% of portfolio companies increased EBITDA

~72% of portfolio companies decreased net leverage

39

North American portfolio companies refinanced ~$43 bn of debt in 2009 and 2010

• ~84% of debt now matures in or after 2014

Size (mm) Description

$760 Revolver, Senior Notes

$8,398 Amend & Extend, Bonds

$5,087 Amend & Extend, Loan, Notes, Tender Offer

$1,400 Amend & Extend, Tender Offer

$6,311 ABL Extension, Senior Notes

$498 Complete Recapitalization

$4,670 Amend & Extend

$1,550 Amend & Extend, Dividend Recapitalization

$7,546 Senior Notes, Exchange Offer

$6,500 Amend & Extend, Bonds

Focus on Improving Capital Structures

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical. Past performance is no guarantee of future results.

40

~$22.5 bn invested through nine mature private equity funds in North America(1)

• 26.1% gross IRR and 2.8x gross MOIC across these funds

• Every mature fund has generated a gross MOIC of 2.0x or greater

Note: Returns reflect performance from inception through 12/31/2010. Past performance does not guarantee future results. MOIC stands for multiple of invested capital. See Important Information for additional disclosures.

(1) KKR’s mature North American private equity funds are those which have been fully invested and include the 1976, 1980, 1982, 1984, 1986, 1987, 1993, 1996, and Millennium Funds.

(2) Includes reinvestment of dividends.

Strong Long-Term Track Record

North American Private Equity Returns Since Inception(1)

26.1%

19.9%

12.8% 12.4%

KKR North AmericanPE Funds Gross

KKR North AmericanPE Funds Net

S&P 500 Russell 3000(2)(2)

41

Recent North American fund outperformance translates into ~$11 bn in incremental value versus the same amounts invested in the S&P 500

(1) All data as of 12/31/2010. Past performance is no guarantee of future results. See Important Information for more details.(2) The general partner of the 1996 Fund was not contributed to KKR in the Combination Transaction, and KKR will not benefit from its investment returns.(3) Includes reinvestment of dividends. See Important Information for additional disclosures.

Recent Performance

1065 bps

1517 bps

662 bps

1996 Fund Millennium Fund 2006 Fund

Outperformance vs. S&P 500(1)

Net IRR: 13.30% 18.35% 4.31%

S&P 500(3): 2.65% 3.18% (2.31%)

Gross MOIC: 2.07x 1.97x 1.22x

(2)

42

Significant outperformance in active North American private equity funds during 2010

• $3.3 bn of distributions from the 1996, Millennium, and 2006 Funds in 2010

2010 Valuation Changes

(1) The general partner of the 1996 Fund was not contributed to KKR in the Combination Transaction, and KKR will not benefit from its investment returns.(2) Includes reinvestment of dividends. See Important Information for additional disclosures.

(2)

47.1%

26.5%28.7%

15.1%

1996 Fund Millennium Fund 2006 Fund S&P 500(1)

43

Attractive Fundamentals for Buyouts

S&P 500 Trailing Price-to-Earnings Ratio(2)

10x

15x

20x

25x

30x

Dec-90 Dec-95 Dec-00 Dec-05 Dec-10

Annual S&P 500 Operating Earnings(3)

40

50

60

70

80

90

2005 2006 2007 2008 2009 2010

Attractive Credit Markets Reasonable Equity Valuations

Companies Priced Off Trough Earnings Worst of Recession Over

Great macro backdrop for private equity

Consumer Confidence(4)

25

35

45

55

65

12/2008 6/2009 12/2009 6/2010 12/201055

60

65

70

75

80

Conference BoardUniversity of Michigan

$481 bn$536 bn

$75 bn

$144 bn $166 bn

$287 bn$234 bn

$155 bn$144 bn

$69 bn

2006 2007 2008 2009 2010

Leveraged Loan Issuance High Yield Issuance(1) (1)

Note: Historic market trends may not be predictive of future market performance or results. (1) S&P LCD News, 2010.(2) Bloomberg.(3) Standard & Poor’s, February 2010.(4) Morgan Stanley research, December 2010.

44

North American Private Equity: Well Positioned for the Future

• Impressive track record

• Strong portfolio

Experience and Results

• World-class team of professionals

• Differentiated strengths

Resource Depth and Breadth

• Improving economic and capital markets conditions

Attractive Environment

45

European Private Equity Johannes P. Huth

46

KKR has been investing in Europe since 1996

• Private Equity, Infrastructure, Mezzanine, Credit, KKR Capital Markets (KCM), Client & Partner Group, KKR Capstone

• $15.3 bn of capital in the region(1)

• Raised four funds with over $15 bn in capital commitments

• 33 completed European transactions since European operations began in 1996 across 11 industries in 13 countries

Strong European Presence

Note: KKR Capstone is owned and controlled by its senior management and not KKR.(1) Figures as of 12/31/2010. Reflects market value of investments in European funds and companies plus uncalled commitments from European funds.

KKR European investment footprint

47

$15.3 bn

$12.9 bn

$11.4 bn$10.8

bn

$11.0 bn$10.2

bn

$5.4 bn$4.8

bn$4.9 bn

$4.9 bn$3.9

bn$3.3 bn

$0.7 bn

$0.4 bn

$0.2 bn

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Annex FundEuropean Fund IIIEuropean Fund IIEuropean Fund IEuropean Investments through Other KKR Funds

Significant Investment Growth in Europe Since 1996(1)

Note: As of 12/31/2010. Investments and commitments calculated as market value of investments in a given period plus uncalled commitments. European Investments through Other KKR Funds reflects values of European investments made prior to the European funds’ creation, and other European co- investments made by global funds subsequent to the European funds’ establishment. Figures include general partner investments and commitments as well as investments and commitments made by KPE. See Important Information for additional disclosures.

(1) Newsquest was KKR’s first investment in Europe, occurring in 1996. Four investments predate the 1999 inception of the first dedicated European Fund.

European Private Equity Investments and Commitments

35% CAGR

48

Resource Build-Out Across Europe

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

8 11 13 15 17 1621 21

2834 33

393

4 66 8

9

9 14

17

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

European KKR Capstone TeamEuropean PE Investment Professionals

Private equity and operational professionals supported by broader resources of the firm

49

Industry and country expertise allows us to see value creation opportunities others do not, and enables us to create proprietary investment opportunities

Deep Industry and Country Expertise

Note: As of 12/31/2010. Portfolio companies identified above may not be representative of the entire portfolio.

UK France Benelux

Core European Industries Core Geographic Coverage

Germany Scandinavia Southern Europe

Business Services Consumer Products and Retail

Energy and Infrastructure

Financial Services

Industrials, Building Materials, and

Chemicals

Media and Communications

Healthcare Technology

50

European Portfolio Performance

$60 bn

$68 bn

2009 2010

Aggregate Revenue Aggregate EBITDA

13%

Note: Includes all European portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction, except Visma, a recently closed acquisition. Past performance is no guarantee of future results. See Important Information for additional disclosures.

(1) Reflects net debt/LTM EBITDA.

Aggregate Leverage(1)

$9 bn

$11 bn

2009 2010

20%

5.1x

3.9x

2009 2010

-24%

51

Capital Returned in 2009 and 2010

IPO Secondary Strategic Sale

Avago DSD Legrand Maxeda(2) Rockwood(3) TDC

Note: Past performance is no guarantee of future results. Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical. Certain distributions from these transactions may not generate distributable cash carry to KKR unitholders.

(1) Of capital returned in 2009 and 2010, $1.1 bn was attributable to European funds. Of expected first quarter 2011 distributions, $1.0 bn is attributable to European funds.

(2) Strategic sale of Fashion division.(3) Dynamit Nobel, originally a European Fund investment, was merged into Rockwood in July 2004. Rockwood remains a partially realized position in the

European and 1996 Funds. Please note that the general partner of the 1996 Fund was not contributed to KKR in the Combination Transaction, and KKR will not benefit from these investment returns.

$1.6 bn returned in 2009 and 2010 across European funds and investments, with a further $1.7 bn expected in the first quarter of 2011(1)

52

European Fund Annual Valuation Changes

Note: Past performance is no guarantee of future results.

-35.8%

-53.3%

53.2%

30.2%

10.8%

47.8%

38.9%

27.4%

2.2%

2008 2009 2010

N/A N/A N/A

European Fund European Fund II Annex Fund European Fund III

53

European Private Equity Performance Since Inception

Note: Includes the entire European portfolio beginning with the 1996 Newsquest investment through the Annex Fund as of 12/31/2010. Excludes investments in European funds which were made outside of the European region. Past performance is no guarantee of future results. Historic market trends may not be predictive of future market performance or future results. See Important Information for additional disclosures.

(1) On net return.

25.8%

15.9%

2.9%3.9%

13.0%12.0%

KKR EuropeanInvestments

Gross

KKR EuropeanInvestments

Net

S&P 500 MSCI S&P 500 MSCI

KKR Outperformance(1)

54

New Acquisitions in 2009 and 2010

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical. (1) KKR has committed to further investments to support the growth of BMG. 2010 transactions include Cherry Lane, Stage 3, Evergreen, and Chrysalis.(2) Multiple based on LTM net publisher share (“NPS”). Net debt not relevant due to net cash position.(3) Based on effective entry multiple. Lower effective multiple results from vendor note.(4) Follow-on investment related to KKR portfolio company Northgate’s acquisition of Convergys.(5) Transaction value of NOK 11,000 mm.

Transaction Value in mm

EV/ EBITDA

Net Debt/ EBITDA

€161(1) 9.5x(2) N/A(2)

£955 11.4x 5.4x

€1,025 8.8x(3) 2.0x

$135(4) 7.1x(4) N/A

€801 10.8x 5.4x

€725 8.7x 5.0x

€1,375(5) 12.2x 4.2x

55

2010 macroeconomic recovery more positive than expected

European Summary

Note: Historic market trends may not be predictive of future market performance or results.(1) As of 12/31/2010.(2) Across European funds and investments. Of capital returned in 2009 and 2010, $1.1 bn was attributable to European funds. Of expected first quarter

2011 distributions, $1.0 bn is attributable to European funds. Certain distributions from these transactions may not generate distributable cash carry to KKR unitholders.

Accelerating Distributions and

Investments

2011 Outlook Appears Positive

European Portfolio

Improving(1)

• European Fund: 2.8x from 2.5x at YE 2009

• Europe II: 0.9x from 0.7x at YE 2009

• Europe III: 1.0x from 0.7x at YE 2009

• Returned $1.6 bn in 2009 and 2010(2)

• ~$1.7 bn expected to be distributed in first quarter of 2011(2)

• Invested $2.2 bn in Europe during 2009 and 2010

• Macroeconomic environment

• Portfolio companies

• New transactions

56

Asian Private Equity Joseph Y. Bae

57

Tokyo office opens

KKR Asia begins operation; Hong

Kong office opens

China Growth Fund reaches $1.0 bn hard

cap

History of KKR Asia

2005 2006 2007 2008 2009 2010 2011

Sydney office opens; $4.0 bn

Asian Fund raised

Beijing office opens; KKR Capstone, Capital Markets, and Client & Partner Group

begin in Asia

Mumbai office opens

Seoul office opens

58

Experienced local investment teams with established track records are integrated with KKR’s global industry teams

• 6 regional offices

• 41 private equity investors

• 11 KKR Capstone professionals

KKR Asia Team

4 Private Equity

Korea-Focused

7 Private Equity

India-Focused

5 Private Equity

SE Asia-Focused

5 Private Equity

Australia-Focused

14 Private Equity3 KKR Capstone

Greater China-Focused

6 Private Equity

Japan-Focused

8 KKR Capstone

Generalists

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

59

Note: As of 12/31/2010. “Pre-Asian Fund” indicates Asian investments made prior to the Asian Fund’s creation, and other Asian co-investments made by global funds subsequent to the Asian Fund’s establishment. China Growth Fund reached its hard cap of $1 bn subsequent to 12/31/2010. Figures include general partner investments and commitments as well as investments and commitments made by KPE. See Important Information for additional disclosures.

Asian Private Equity Investments and Commitments

Large and Growing Pool of Dedicated Capital to Invest in Asia

1.6 1.32.1 2.4

4.03.8

4.15.0

0.9

$0.4 bn

$1.4 bn

$5.6 bn$5.1 bn

$6.2 bn

$8.4 bn

2005 2006 2007 2008 2009 2010

Pre-Asian Fund Asian Fund China Growth Fund

81% CAGR

60

Asian Investment Timeline

2007 2008 200920062005

Modern Dairy

Bharti Infratel

Follow-On

2010

Follow-On

$424mm $725mm $634mm$915mm$427mm $904mm

China Growth FundPre-Asian Fund Asian FundNote: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

61

By Geography

By Structure(1)

By Industry

Japan 4%

Korea 11%

Australia 12%

India 17%

Greater China 23%

Singapore 33%

Retail 1%

Mining 3%

Telecom 4%

Recruitment 4%

Manufacturing 5%

Financial 8%

Media 9%

Precision Manufacturing 14%

Consumer 21%

Technology 30%

Non-Control 30%

Control 70%

Diversified Portfolio

Note: Based on remaining fair value as of 12/31/2010. Portfolio includes all Asian investments across all private equity funds.(1) “Control” indicates buyout or joint venture transactions where KKR, along with other financial investors if applicable, collectively holds equity ownership

of 50% or more. “Non-control” indicates growth or minority investments.

62

Australia Singapore

Outsourced logistics services provider to mining sector

Multimedia group of TV, magazine, and online properties

Designer, developer, and global supplier of fabless semi- conductors

Precision engineering manufacturer of HDD, non-HDD, and capital equipment

Global provider of high-precision components

India

Communications industry software solutions provider

Traditional Buyout Investing—Core Markets

Korea

Japan

One of Korea’s two major breweries

Comprehensive recruitment services provider

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

63

Modern Dairy

Bharti Infratel

China India

Leading investment bank

Market-leading SME financing company

Dairy group operating large-scale cow farms

Strong regional cement producer

Leading regional car dealership

Leading high-end liquor store chain operator

Leading global independent telecom tower company

Leading food and beverage retailer

Leading private cement company

Taiwan

World-class passive component provider

Growth Investing—Greater China and India

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

64

Strong Portfolio Performance

$8 bn

$10 bn

2009 2010

Aggregate Revenue Aggregate EBITDA

27%

Note: Revenue and EBITDA include all Asian investments as of 12/31/2010. Data not included for CICC, Dalmia Cement, Rundong Auto Group, Tianrui, and VATS either because these are recent investments/data is not available or because metrics are not relevant. Past performance is no guarantee of future results. See Important Information for additional disclosures.

2010 Change in Value

$2 bn

$3 bn

2009 2010

46%

All Asian Investments

Asian Fund Investments

44.8%

51.0%

65

Asian Investment Performance

Operating growth has driven meaningful portfolio appreciation

• Every investment in the Asian Fund is at or above cost as of YE 2010

Asian Fund All Asian Investments

1.1x

1.4x

YE 2009 YE 2010

1.3x

1.7x

YE 2009 YE 2010

Gross MOIC(1)

Note: Past performance is no guarantee of future results.(1) See Important Information for details regarding multiples of invested capital.

66

Improving Exit Environment

$174

$71

$20

$74$84

$37 $48 $53$32$38

$100

$60$53 $49

Asia IPOs Americas IPOs

2010200920082007200620052004

IPO Market Trends(1) (bn)

Asia M&A Volume as a Percent of Global M&A Volume(2)

8%12%

9% 11%14%

19%17%

2004 2005 2006 2007 2008 2009 2010

Note: Historic market trends may not be predictive of future market performance or results. (1) ECM Analytics. All announced deals as of 12/24/2010.(2) In US dollars per SDC Thomson Financial. Includes all announced M&A deals as of 12/24/2010. Excludes equity carve-outs, exchange offers, and open

market purchases.

67

Note: Reflects three-year moving averages. Historic market trends may not be predictive of future market performance or results. Source: International Monetary Fund, World Economic Outlook, April 2010. Aggregates are computed on the basis of purchasing-power-parity (PPP) weights.

Asia’s Increasing Influence on the Global Economy

Contribution to Global GDP Growth

Rest of World China United States Other advanced economies

0%

2%

4%

6%

1970 1980 1990 2000 2010P 2015P

68

Investment Outlook in Asia

Australia China India Japan Korea SE Asia

Public-to- Privates

Structured Minority

Growth

Corporate Divestitures

Cross-Border M&A

Valuation

LT Outlook

Flexible pan-Asian capital to capture opportunities across countries

Note: See Important Information for additional disclosures.

69

Asian private equity industry nascent relative to other regions

• Growth in small funds focused on non-buyout opportunities

Asian Private Equity Market

Aggregate Asia-Focused PE Funds Asia-Focused PE Funds Raised

Source: Year-End Asian Private Equity Review. Historical market trends may not be predictive of future market performance or results.

$137 bn

$169 bn

$212 bn

$266 bn$291 bn

$324 bn

2005 2006 2007 2008 2009 2010

$6 bn

$8 bn

$18 bn

$14 bn

$13 bn

$10 bn

$28 bn$17

bn

$36 bn

$30 bn$19

bn$15 bn

2005 2006 2007 2008 2009 2010

Buyout Non-Buyout

19% CAGR

70

Where Do We Go from Here?

• Further build out private equity in region

• Continue focus on portfolio

• Launch region-specific businesses and raise larger successor funds

• Support expansion of other parts of firm to Asia to capitalize on opportunities in this high-growth region

71

Driving Value Dean B. Nelson

72

• KKR Capstone partners with management to drive sustained improvement

• Identifying opportunities is straightforward

• Implementing them is hard work

• Transform good companies in good industries into great companies

• Drive returns through operational improvement

Operational Improvements are Core

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

73

6%

Revenue Growth

12%

EBITDA Growth

22%

IRR

Revenue Growth Drives Long-Term Returns

Note: Portfolio companies located in Western Europe and the US with annual revenue greater than $500 mm, original investment made between 4/2004 and 7/2007, and little to no change in business portfolio since investment. Portfolio companies included may not be representative of the entire portfolio, and results may not be typical.

Portfolio Companies with Revenue Growth >3% per Year

Double-digit EBITDA growth typically requires revenue growth

• Primary focus is on growing revenue

74

KKR Capstone is a global team of 59 executives

Our Extensive Experience and Team Size Differentiate Us

59

19

3

2000 2005 2010

Americas Europe Asia

75

• One Capstone team and a global approach across seven KKR offices

• Supported by 30 senior advisors: former CEOs and industry leaders

Significant Operational Resources

Broad 2010 Portfolio Efforts

Europe AsiaNorth America

76

Note: Portfolio companies identified above may not representative of the entire portfolio, and results may not be typical. (1) Percentage calculated by dollars of KKR equity invested rather than by number of KKR portfolio companies. Includes companies in funds subsequent to

the 1996 Fund, which was not contributed to KKR in the Combination Transaction, with greater than $100 mm in revenue at close and where KKR holds a control position, either alone or with other partners.

We Work Broadly Across the Portfolio

KKR Capstone partnered with

90%+of KKR’s

portfolio(1)

Modern Dairy

77

The Impact of Operational Improvements

Note: Past performance is no guarantee of future results. (1) Aggregate run-rate EBITDA impact of work performed at portfolio companies during 2010 with direct involvement of KKR Capstone. Company totals

based on 2010 financial results, budgeted plans for 2011, management forecasts, and team estimates.

$800million

EBITDA impact of projects where we

partnered with management in

2010(1)

• Build capability to sustain improvement

• On-the-ground, 18-24+ months

• Accountability plus aligned incentives

• Operational diligence: better investments, immediate ramp-up of value creation

Drive Trajectory-Changing Results in the Portfolio

Broad Range of Cross-Portfolio Services

78

Note: Portfolio company identified above may not be representative of the entire portfolio, and results from this company may not be typical.

• The largest small-box discount

retailer in the US

• Attractive fundamentals

• KKR invested in 2007

Value Creation at Dollar General

79

• Improved store standards

• Reduced shrink

• Optimized store site selections

• Improved working capital

• Reduced out-of-stocks

• Refined pricing strategy and execution

• Revamped store merchandising

Dollar General: Key Initiatives

80

Dollar General: Revamp Private Label

Old Products New Products

81

Dollar General: Significant Sustained Improvement

Valued at 3.5x cost at 12/31/2010

Revenue Growth Improved Profitability

-10%

0%

10%

20%

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Dollar General Competitor

Capstone involvement

begins

Adjusted EBITDA Margin

7.2%

11.6%

2007 Q3 2010 LTM

440 bps

Note: Past performance is no guarantee of future results.

82

Note: Portfolio company identified above may not be representative of the entire portfolio, and results from this company may not be typical.

Value Creation at Oriental Brewery

• #2 player in Korean beer market

• KKR Capstone key role in diligence

• KKR invested in Oriental Brewery in 2009

Opportunity

• New wholesaler management program

• Consistent sales practices across organization

• Re-launch of Cass Light brand beer

• Expanded procurement practices to reduce costs

• Reduced inventory

Value Creation

83

Oriental Brewery: Results

Note: Past performance is no guarantee of future results. (1) On a US dollar basis.

Market Share Growth Improved Profitability

Valued at 1.9x(1) cost at 12/31/2010

40.6%

44.1%

FY 2008 FY 2010

350 bps

EBITDA Margin

33.7%

34.8%

FY 2008 FY 2010

110 bps

84

Functional Expertise Drives Value in the Portfolio

Procurement Value Creation: US Foodservice

Work on-site to drive significant value at specific companies

• Procurement

• Information technology

• Sustainability

• Biggest value creation opportunities in company-specific efforts

Create long-term value by building tools and capabilities at companies

• Over $330 mm of ongoing benefit from direct procurement efforts

1

2

Second-largest food distributor in US

18-month work effort

• Centralized procurement

• New tools: quick, easy, repeatable

• Built a team

Results: $100 mm in run-rate savings

Note: Portfolio company identified above may not be representative of the entire portfolio, and results from this company may not be typical.

85

Sustainability (Environmental Defense Fund partnership)

Examples of Cross-Portfolio Impact

Indirect Sourcing

Benefits/Wellness

Corporate Insurance

Cross-Portfolio Metrics Management

IT Policies/Procurement

Impactful Range of Cross- Portfolio Services

Reducing environmental impact and improving efficiency

Results• Avoided 345K metric tons of

greenhouse emissions, 1.2 tons of waste, and 8,500 tons of paper

• $150+ mm in total cost savings

Centralized purchasing across portfolio for improved terms• 120+ spend categories from

small parcel to medical plans

Results• $150+ mm in run-rate savings

86

$33 bn

$38 bn

2009 2010

Strong Operating Performance at Portfolio

$191 bn

$204 bn

2009 2010

Aggregate Portfolio Revenue Aggregate Portfolio EBITDA

7%

~87% of portfolio companies increased EBITDA

~83% of portfolio companies increased revenue

15%

Note: Includes all portfolio companies as of 12/31/2010 in funds subsequent to the 1996 Fund, which was not contributed to KKR in the Combination Transaction. Data for last 12 months ended 12/31/2010 except for portfolio companies with publicly traded securities which have non-calendar fiscal years, in which case last 12 months’ data as of the latest reported fiscal quarter is shown. Data not included for CICC, Dalmia Cement, El Paso Midstream, Hilcorp Resources/TC Energy, KKR Debt Investors, Rundong Auto Group, Tianrui, VATS, and Visma either because these are recent investments/data is not available or because metrics are not relevant. Past performance is no guarantee of future results.

87

Energy & Infrastructure Marc S. Lipschultz

88

Industry Dynamics Create Enormous Opportunity

Compelling outlook for energy investing over the next 10 years

Global demand expected to grow

substantially over time

Low natural gas prices pressuring

energy companies

Global supply composition changing radically

Strong supply + weak current demand = accelerating and attractive opportunities

in 2011 and beyond

89

Global Energy Demand Expected to Grow Significantly

Note: Historic market trends may not be predictive of future market performance or future results.Source: IEA World Energy Outlook 2010. Totals include international marine and aviation bunkers (not included in regional amounts).

5.2 5.4 5.5 5.5 5.6 5.6

4.5

6.58.0 8.7

10.0 10.7

16.716.0

14.613.8

12.3

10.0

2000 2008 2015 2020 2030 2035OECD Non-OECD

Historical and Projected Global Energy Demand (mmtoe)

90

Note: Red text reflects a significant deficit.Source: BP Statistical Review of World Energy 2010.

Oil and Gas Not Produced Where They are Consumed

Reserves: 8%Consumption: 3%

Africa

Reserves: 9%Consumption: 6%

South/Central America

Reserves: 5%Consumption: 25%

Asia Pacific

Reserves: 5%Consumption: 26%

North America

Reserves: 53%Consumption: 13%

Middle East

Reserves: 20%Consumption: 27%

Europe and Eurasia

91

Some sources estimate a need as high as approximately $3 trillion annually(1)

Global Infrastructure Investment Requirements are Vast

(1) Infrastructure to 2030 by the OECD.(2) 2009 Report Card for America’s Infrastructure authored by ASCE (American Society of Civil Engineers).

$422 bn per year(2)

North America

$45 bn per year(2)

Latin America

$305 bn per year(2)

Expanded EU

$56 bn per year(2)

Russia/FSU

$56 bn per year(2)

Middle East

$10 bn per year(2)

Africa

$200 bn per year(2)

Asia ex-China

$200 bn per year(2)

China

92

• Oil and gas companies with good assets

• Companies with unconventional growth opportunities

• Gathering and processing with substantial new investment requirements

Corporate Opportunities

Key Investment Themes in Energy & Infrastructure

• North American conventional oil- and gas-producing assets

• Unconventional field development

• International oil and gas fields

Oil & Gas Assets

• Utilities

• Contracted power

• Renewables

• Midstream

• Select transport areas

Infrastructure

93

Where We Were: Limited Actionability

All Energy and Infrastructure Businesses

Buyouts

94

Where We Are: A Complete Platform to Address the Industry

Pipelines

International Oil & Gas

Buyouts/Growth Partnerships

North American Unconventional Oil &

Gas

Third-Party

Infrastructure North American Producing Oil & Gas

Special Situations

All Energy and Infra- structure

BusinessesDedicated Strategy

Joint Venture Private Equity RPM Energy

Dedicated Strategy

KKR Capital MarketsKKR Asset ManagementJoint Venture

Opportunity Capital Pool

95

Long History of Energy Investing

1976 2011

UNION TEXAS PETROLEUM

AOT/Battrum Properties

HilcorpResources

EBR Properties

TCEnergy

ConocoPhillips Properties

2/2003

10/20077/1985

6/2010

9/2010

10/2010

12/2010

2/2000

12/2004

7/2008

6/2009

9/2010 12/2010

2/2011

10/2010

Energy Bubble Bursts

(1)

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results from these companies may not be typical.(1) Unconventional oil and gas partnership to which capital has been committed but not yet funded.

96

$4.2 bnNote: Investments identified above may not be representative of the entire portfolio, and results from these companies may not be typical.(1) Includes committed but not yet funded capital as well as syndicated co-invest capital as of 3/10/2011. Investment component reflects unrealized value.(2) Includes commitment of $250 mm from KKR Financial Holdings (“KFN”).

Energy & Infrastructure Platform

KKR and the post-energy bubble opportunity

Holdings Equity Investment/ Commitments(1)

Undrawn Capital

Private Equity

• EFH• Hilcorp Resources• RPM• Texas Crude• El Paso Midstream• AOT/Battrum

$2.0 bn N/A

Infrastructure • Colonial Pipeline $1.1 bn $0.5 bn

Natural Resources(2)

• EBR Gulf Coast• Conoco Barnett

$0.1 bn $0.4 bn

Other • Not disclosed $0.1 bn N/A

TOTAL $3.3 bn $0.9 bn

97

East Resources Encapsulates the Strategy

Additional Marcellus Acreage

East Resources Asset Map

• 2008: Targeted Marcellus

• 2009: Invested $330 mm

• 2010: Realized $1.5 bn

Note: Former investment identified above may not be representative of the entire portfolio, and investment returns from this company may not be typical.

Elk

Erie

Tioga

York

Potter

Steuben

Centre

Delaware

Berks

Otsego

Bradford

Butler

Lycoming

Pike

Bedford

Sullivan

Clearfield

Allegany

McKean

Blair

Crawford

Indiana

Luzerne

Somerset

Stark

WayneCattaraugus

Rand

olph

Fayette

Perry

Bucks

Lancaster

Mercer

Chester

Cayuga

Kanawha

Greenbrier

Broome

Ontario

Chautauqua

Monroe

Chenango

Clarion

Grant

Schuylkill

Preston

Cambria

Madison

Raleigh

Poca

honta

s

Onondaga

Venango

Huntingdon

Boone

Clay

Allegheny

Nicholas

Trumbull

Meigs

Athens

Roane

Ashtabula

Westmoreland

Mifflin

Noble

Yates

Niagara

Pendleton

Forest

Mingo

Webster

Dauphin

Braxton

Belmont

Ritchie

Wyoming

Mason

Portage

Armstrong

Livingston

Schoharie

Beaver

Tucker

Lincoln

Susquehanna

Cortland

Hampshire

uskingum

Wirt

na

Jackson

mes

Summit

Morgan

Genesee

Guernsey

Juniata

Carbon

Tyler

octon

Wetzel

Tompkins

Geauga Lehigh

Orleans

Gilmer

Harrison

Upsh

ur

Lake

Tuscarawas

Snyderahoga

Cumber

landColumbiana

Mine

ral

Cabell

Cameron

Mahoning

Barbour

Chemung

Lebanon

Schuyler

S mmers

Lackawanna

Marshall Berkeley

Calhoun

Monongalia

Doddridge

Taylor

Northampton

Ohio

Northumberland

Montour

Pleasant

s

Philadelp

Wood

Greene

Clinton

WarrenErie

Fulton Franklin Adams

Lawrence

Sullivan

Wyoming

Lackawanna

Columbia

Montgomery

Delaware

Marion

Fayette

MonroeLogan

yne

Putnam

Lewis

Jefferson

Morgan

Hardy

Seneca

Tioga

Carroll

Harrison

Monroe

Washingt

on

ayne

y

Jefferson

BrookeWashington

HancockJefferson

New York

Pennsylvania

West Virginia

Ohio

Operating AreasNorthern WVNorthern WV

Western PAWestern PA

NW PA / SW NYNW PA / SW NY

North-Central PA / Southern NYNorth-Central PA / Southern NY

Additional East AcreageAdditional East Acreage

98

The Opportunity: Producing Oil and Gas in North America

Conventional properties becoming “non-core”

Capital intensity of unconventional development

Public market valuation premiums for shales

Attractive assets with limited buyer universe

Recent market dynamics have left conventional assets out of favor, leading to compelling opportunities for investors

Declining production profile of conventional assets

99

The Response: KKR Natural Resources (“KNR”)

• Opportunity sourcing

• Technical diligence

• Post-acquisition asset optimization

• Opportunity sourcing

• Financial diligence and deal execution

• Strategic oversight

100

KKR Natural Resources: Latest Developments

Substantial long-term growth

potential

Two attractive acquisitions made for ~$177 mm(2):

EBR Gulf Coast assets closed October 2010

Conoco Barnett assets closed December 2010

Over $500 mm

committed to platform today(1)

Note: Investments identified above may not be representative of the entire portfolio, and results may not be typical.(1) Includes commitment of $250 mm from KFN.(2) Reflects total purchase price of assets.

101

Shales have altered the US oil and gas landscape and generated substantial capital need

• More than $1 trillion needed to develop the shales

The Opportunity: US Shale Development

Source: Jefferies & Co. and KKR estimates based on public sources.

Future Development Requirements by Shale Play

Example: Marcellus Capital Requirements

$114 bn

$149 bn

$124 bn

Majors &Large

Independents

Mid-CapIndependents

Small-Caps &Private

Companies

$59 bn$78 bn

$105 bn

$308 bn

$387 bn

$70 bn

31,25037,500

93,750

12,500 12,50021,818

Bar

net

t(C

ore)

Eag

le F

ord

Faye

ttev

ille

Hay

nes

ville

Mar

cellu

s

Woo

dfo

rd

Total Future Capital NeedWells to Be Drilled

102

• Scale/large capital pools

• Commercial and financial capabilities

• Differentiated industry relationships

• Experience investing in shales

• Technical, commercial, and financial capabilities

• Experienced executives that industry participants want to do business with

Formed partnership with RPM Energy, a privately owned oil and gas exploration and development company, to invest in unconventional properties in a wide range of basins

The Response: RPM Energy

KKR RPM Energy

The Shale

Opportunity

103

Source: US Energy Information Administration reports.(1) “Other” category includes AD gas, Alaska, and net imports.

The Opportunity: Pipelines

Growth of Unconventional Gas (Bcf/d)(1)

Shale Gas Ubiquity in the USSupply-Driven Pipeline Capacity Additions (Mcf/d)

8,460

44,750

23,571

31,018

35,444

9,262

6,5176,983

12,84810,423

7,6618,198

12,70514,859

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

P20

10P

2011

P

• Unconventional natural gas supply resources key source of production growth in North America

• Development of resource plays in new areas

• Shift in resource base and resulting need for new infrastructure investment

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Conventional Offshore Tight Gas Shale CBM Other

104

The Response: El Paso Midstream Investment Joint Venture

• Partnered with El Paso Corporation to form El Paso Midstream Investment Company, a joint venture focused on US natural gas midstream sector

• JV attractive to El Paso given quantum of capital/relationships required

• El Paso gave KKR a first look at opportunity and ultimately exclusivity

• Significant midstream capital required in emerging shale plays to support robust long-term drilling outlook

• El Paso had incumbency advantage

• Attractive existing asset

• Leading midstream management team with experience building/operating a highly successful midstream MLP

• Platform upsides

Transaction Overview Investment Thesis

Note: Portfolio company identified above may not be representative of the entire portfolio, and results may not be typical.

105

• Massive need for infrastructure capital around the world

• Traditional sources of capital very constrained (both public and private)

• Budget crises in US and Europe will require public-private partnership solutions

• Infrastructure investors badly bruised in prior generation of funds: need for “version 2.0”

The Opportunity: Global Infrastructure

106

• Low risk

• Conservative leverage

• Inflation protection

• Low correlation with GDP and other investments

• Long duration

Infrastructure Investing Must Evolve to Version 2.0

Investors expected…

Need for “version 2.0”

…but received “version 1.0”

• Transaction-oriented

• Sector-based asset selection

• Maximal leverage on individual assets

• Focus on asset accumulation

• Reactive stakeholder approach

• Experienced team

• Disciplined asset selection

• Asset-appropriate leverage

• Focus on operational engagement

• Stakeholder management as a core competence

107

The Response: KKR Infrastructure Strategy

Disciplined investment selection

Deep operational engagement

Active stakeholder management

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

• Drive value creation through:

Our Strategy

108

Infrastructure platform at $1.6 bn

KKR Infrastructure Platform: Latest Developments

Over $500 mm of

committed uninvested

capital

$1.1 bn of invested

capital through a

separately managed

account

109

KKR Energy & Infrastructure

The future of the platform

110

Global Public Affairs Kenneth B. Mehlman

111

The World is Watching

• Heightened scrutiny of global businesses and investors

• Uneven economic recovery stokes populism

• Sovereign debt issues

• Empowered NGOs

• Increased regulation, taxation, trade scrutiny around the world

...All can impact our bottom line

112

Our Strategy

Build proactive efforts around…Incorporate stakeholder and

regulatory focus into processes

• Investment Committees

• Portfolio management

• Best practices

• Environment/sustainability

• Responsible sourcing

• Anti-corruption

• Labor/employee engagement

• Transparency

• Other issues relevant to specific companies

113

A Leader in Our Efforts

James GiffordPRI Executive DirectorFebruary 19, 2009

“Managing environmental, social and governance issues— including relationships with key stakeholders—is an

increasingly important part of the value proposition of private equity.

Signing the PRI and joining our network demonstrates KKR’s leadership in this area, and is another sign that KKR recognizes the importance of responsible investing.

We look forward to working with KKR on practical implementation and hope we can do so in a way that will

encourage other firms to follow.”

114

Progress in 2010

• Train and educate KKR executives

• Establish network of external partners

• Communicate our commitment to portfolio companies

• Communities of best practice for portfolio company personnel

• Responsible contracting policy for infrastructure business

• Build sustainability and sourcing efforts

• Environmental-social-governance roundtables with limited partners

• Annual report will discuss our efforts on sustainability

We look forward to further progress in 2011

115

Our Strategy at Work: Green Portfolio Program

Recycling at Dollar General

FinancialSavings

EnvironmentalSavings

~$40 mm ~10.8 mm cubic yards of waste

Fleet Efficiency at US Foodservice and Sealy

FinancialSavings

EnvironmentalSavings

~$18 mm 58,000+ metric tons of CO2 emissions

Note: More information available at http://green.kkr.com. Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

116

Responsible Sourcing Initiative

• Partnered with Business for Social Responsibility to develop guidelines

• Conducted webinars for Chief Procurement Officers and General Counsels

Activities to DateContext

• Real risks and changing expectations

• Need for best practices

Program launched to promote socially and environmentally responsible global sourcing—better business practices for portfolio companies and their suppliers

Results

117

KKR and our Portfolio: Part of the Solution

Taking Actionon Sustainability

Productive Engagement with Employees

Promoting Transparency and Good Governance

Proactively Engagedin Understanding Public Policy

118

Business Development & Strategy Scott C. Nuttall

119

Observation #1

Under-utilizing investment ideas and

relationships

Build new investing businesses

Infrastructure, Natural Resources,Liquid Credit, Mezzanine, Special Situations,

China Growth

120

Observation #2

Valuable content we source should be

delivered to our own relationships

Build global, multi-product capital markets business

KKR Capital Markets

121

Observation #3

Too few investor relationships

Build broader, global relationship/distribution team

Client & Partner Group

122

New WorldOld World

KKR Approach

• Source buyouts

Invest

men

t Team

• Listen to companies’ needs

• Deliver best principal solution from our product set

• Call colleagues with opportunities

Rela

tio

nsh

ip

Team • Raise episodic

funds (blind pool, fixed terms)

• Cover the entire institution

• Listen to clients’ needs

• Deliver all KKR products and design new solutions

• Be open-minded and flexible

Goal

• Be relevant to all relationships

• Invest behind more ideas

123

Observation #4

Permanent capital would help create

better alignment and help accelerate

growth

KKR/KPE Combination Transaction

Now our own largest investor;$5.7 bn of permanent capital

124

Why Permanent Capital?

• Infrastructure

• Natural Resources

• Mezzanine

• Special Situations

• China Growth

• Up next: real estate, long/short equity

• Initial public offerings

• Secondary equity offerings

• Term loans/revolvers

• High yield

• Structured debt/equity

• Private equity

Build New

Businesses

Support Growth

of KKR Capital

Markets

125

Tests Applied to New Ideas

Benefit from “one-firm” approach?

Is there investor demand?

Does it fit culturally?

Yes to all three

Up next: long/short equity, real estate

126

Opportunity

Old World New World

Buyouts $912 bn Buyouts $912 bn

High Yield ~1,200

Leveraged Loans ~1,000

Mezzanine ~70

Distressed PE ~150

Hedge Funds ~1,600

Real Estate ~1,000

Other ~100

Market Opportunity $912 bn Market Opportunity ~$6,000 bn

Note: Market opportunity represents approximate market size for identified strategies based on Preqin, JP Morgan, and KKR estimates. Actual size may vary.

127

Is It Working?

2005 Today(1)

Ways to Invest• Private equity• Bank loans

• Private equity• Bank loans• High yield• Mezzanine• Special situations

• Infrastructure• Natural resources• China growth• Long/short equity• Real estate

Non-PE AUM $4 bn $16 bn

Capital Markets Fees $0 $105 mm

Number of LPs 254 350+

Balance Sheet <$100 mm(2) $5.7 bn

Offices/Countries 6/4 14/9

Total AUM $23 bn $61 bn

(1) Dollar amounts as of 12/31/2010. Other figures as of 3/10/2011.(2) Excludes general partner interests held by KKR principals.

128

Invest more behind ideas and relationships

Momentum

Capture more from content we create

Bring ideas and products to more investors

Invest our own capital/Seed new efforts

Multiplier Effect

129

KKR Asset Management William C. Sonneborn

130

$1 bn $2 bn $2 bn$4 bn $4 bn

$6 bn$8 bn

$2 bn$3 bn

$7 bn$9 bn

$7 bn$7 bn

2004 2005 2006 2007 2008 2009 2010

Non-FPAUM

FPAUM

• Demonstrated ability to leverage KKR’s intellectual capital for growth

• $7.8 bn of fee paying AUM ($14.8 bn in total AUM)

• More than 100 dedicated employees, including ~45 investment professionals

KKR Asset Management (“KAM”)(1) Overview

AUM Growth(2)

(1) Represents Public Markets segment.(2) As of 12/31/2010. See Important Information for our calculation of assets under management (AUM) and fee paying AUM (FPAUM).

64% CAGR

131

Successful record of developing and growing new businesses

• ~25% of 2010 management fees from businesses started in the last two years

Expansion of the KAM Business

’04-’08: Established Presence, Primarily Liquid

Credit

’08-’10: Built Out Diversified Credit Platform

’11 & Beyond: New Asset Classes and Geographies

2008 2009 20112004

San Francisco team established

KFN launch

Bank loans & high yield; first mezzanine investments

2007

New York team established

London team established

New geographies

Beyond

Mezzanine launch

Special situations

launchLong/short

equity launchNew

strategies

132

A virtuous circle that yields strong returns and access to a large addressable market

KAM Business Model Today

…and may yield strong returns and solutions for

our investors…

Invest in asset classes where we can leverage the existing intellectual capital

of KKR…(1)

…and then creates new intellectual capital

for the firm…

…which enables us to make better investment

decisions…

INTEGRATED “One-Firm”APPROACH

(1) Participation of private equity, KKR Capital Markets, and KKR Capstone personnel in the KAM investment process is subject to applicable inside information barrier policies and procedures, which may limit the involvement of these personnel in certain circumstances.

133

KAM’s Competitive Edge

ExpandingInvesting Platform

StrongPerformance

GrowingCapital Base

• Growing offering of strategies and products

• Disciplined and flexible investment approach

• Strong track record across all strategies

• “One-firm” sourcing and diligence(1)

• $7.8 bn in FPAUM today

• Long-term, flexible capital

• ~55% of investors in last two years are new to KKR

Scalable Business Model

• High degree of embedded operating leverage

• Significant profit contribution from incremental revenue

• Revenue yield on FPAUM improving

Attractive Financial Outlook

• New businesses are still young

• Sizable untapped new product areas

(1) Participation of private equity, KKR Capital Markets, and KKR Capstone personnel in the KAM investment process is subject to applicable inside information barrier policies and procedures, which may limit the involvement of these personnel in certain circumstances.

134

7.1%

12.2%

19.9%

11.1%10.5%

6.3%

18.2%

11.4%

5.2%

8.2%9.4%

11.0%

Secured Credit Model High Yield Carve-Out Bank Loans + High Yield Opportunistic Credit

Gross Net Benchmark

Expertise across bank loan and high yield asset classes, with top-decile performance since inception in each strategy

Strong Performance: Bank Loans & High Yield

Gross & Net Return vs. Benchmark Since Inception

Inception: 9/2004

Note: Data as of 12/31/2010. Peer comparison data is from eVestment Alliance and is based on the universe of “Bank Loan” and “High Yield” managers as self-defined by each manager. Secured Credit Model and High Yield Carve-Out performance presented is supplemental to the Secured Credit Levered Composite. Past performance is no guarantee of future results. See Important Information for information on benchmarks and returns.

Inception: 9/2004 Inception: 7/2008 Inception: 5/2008

135

Since 2010, we have deployed approximately $500 mm in mezzanine investments

• Partnered with experienced sponsors like KKR, Bain Capital, Advent International, Providence Equity, Golden Gate Capital, and Triton

Strong Performance: Mezzanine

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical. (1) Reflects mezzanine deals completed in 2010. Includes one deal that closed in the first quarter of 2011.

Recent Mezzanine Experience(1)

136

Special situations platform is outpacing key benchmarks and showing strong momentum

Strong Performance: Special Situations

Note: Past performance is no guarantee of future results. See Important Information for information on benchmarks and returns. (1) Data as of 12/31/2010. Inception date of 2/19/2010. Since period is less than one year, returns are not annualized. Net returns based on asset-

weighted institutional fee of accounts in the composite. Strategy returns are based on an internal rate of return (IRR) calculation.

Historical Track Record Since Inception(1)

20.3%

14.9%13.4%

7.1%

15.2%

Gross Net 50% S&P 500 /50% MSCI EAFE

Merrill Lynch HighYield Master II

HFRX DistressedSecurities Index

137

KAM initially launched with a focus on below-investment-grade credit, but today has a diversified business across strategies and client vehicles

Expanding Investment Platform

Marketable Securities Alternative Investments

• Bank Loans

• High Yield

• Bank Loans Plus High Yield

• Opportunistic Credit

• Mezzanine

• Special Situations

• Long/Short Equity

KAM Strategies

Multiple Client Delivery Platforms

138

$7.8 bn of differentiated, long-term fee-paying capital across strategies and accounts

Growing Capital Base

By Account Type By Strategy(1) By Duration By Fee Structure(2)

Note: Data represents fee-paying AUM as of 12/31/2010. See Important Information for our calculation of assets under management. (1) Figures represent estimates based on target allocations across all accounts as of 12/31/2010.(2) “PE-Like Fee Structure” category includes mezzanine and special situations funds and separately managed accounts.

FPAUM growth of 24% in 2010

Funds27%

Accounts73%

Bank Loan51%

High Yield17%

Mezzanine13%

Special Situations

14%

Other5%

Permanent18%

Subject toLong-Term

Lock-Up39%

Subjectto Periodic

Redemptions43%

PE-Like FeeStructure

24%

Hedge Fund FeeStructure

17%

ManagementFee Only

59%

139

KFN provides access to a range of KKR strategies

KKR Financial Holdings (“KFN”)

KFN’s Evolution Growth in Managed Assets

Extend Existing Capabilities for Growth and Capital Preservation

KKR Incentives Aligned with KFN Performance

2004-2007

REITStructure

2008-2009

CorporateCredit

2010 On

Extended Opportunities

$813 mm

$1,366 mm

$872 mm

2008 2009 2010

FPAUM from KFN(1)

(1) See Important Information for additional disclosures.

140

“One-firm” approach drives scalability in KAM’s core business without adding significant incremental resources

A Scalable Core

Creating Operating Leverage

Note: Participation of private equity, KKR Capital Markets, and KKR Capstone personnel in the KAM investment process is subject to applicable inside information barrier policies and procedures, which may limit the involvement of these personnel in certain circumstances.

(1) Represents management fees, transaction fees, and incentive allocations. Excludes carried interest payments. Incremental revenue adjusted to exclude management fees received from structured finance vehicles in lieu of expense reimbursements in both 2009 and 2010. See Important Information about fee related earnings (FRE).

$61.1 mm

$45.1 mm

IncrementalRevenue

IncrementalFRE

74% flow-through on incremental 2010

revenue(1)

2010 vs. 2009

INTEGRATED “One-Firm”APPROACH

141

Approach to addressing a large universe of potential new business opportunities

Driving Additional Growth Through New Businesses

Phase 1: Assess Market Opportunity and Make Targeted

Hires to Establish Capability

Phase 4: Drive Superior Investment Performance over

Market CyclePhase 1 Phase 2 Phase 3 Phase 4

Replicable New Business Development Processes

Bank Loan + HY

Mezzanine

Special Situations

Public Equities

Note: See Important Information about economic net income (ENI) and fee related earnings (FRE). Information regarding KAM’s public equity platform (KKR Equity Strategies) is provided for discussion purposes only as the strategy is currently in development.

Phase 3: Raise Dedicated Capital

Phase 2: Selectively Allocate to Strategy and Build Track Record

142

Growth of mezzanine platform highlights KAM’s ability to commercialize a market opportunity

Case Study: Mezzanine

Mezzanine Evolution: Cumulative Invested Capital 2011 & Beyond

2004-2009

Opportunistic allocations

No sourcing capabilities

US only

2010 to Today

Dedicated capital

Proprietary sourcing

US/Europe

0# of Deals: 1 3 2 2 2 6 1

Note: Two add-on investments in 2010 included with the original 2009 investments. 2011 data includes one investment committed to as of 12/31/2010 that closed in the first quarter of 2011. Past performance is no guarantee of future results.

• Dedicated capital

• US/Europe/Asia

• Attractive economics through management fees and carried interest generation

$1,039 mm

$1,141 mm

$661 mm$565

mm$357 mm

$148 mm

$0

$25 mm

2004 2005 2006 2007 2008 2009 2010 2011

143

2010 was a strong year for growth, and we continue to invest in the business

Attractive Financial Profile

Total Fee Income Fee Related Earnings Margin

Committed Dollars Invested(2)Effective Fee Rate(1)

$55.1 mm

$102.7 mm

2009 2010

86%

$0.0

$697.6 mm

2009 2010

21.4%

55.5%

2009 2010

1.00%

1.40%

2009 2010(1) Effective fee rate defined as (management fees + incentive fees) / average FPAUM.(2) Represents the aggregate amount of capital commitments invested by carry-yielding funds and co-investment vehicles. Includes general partner capital.

144

KAM is well positioned today

Long-Term Value Creation

The Right People

The Right Strategy

• More than 100 dedicated employees, including ~45 investment professionals

• Expanding investment capabilities

• Multiple client delivery platforms

• Diversified capital base

Strong Track Record

• All KAM strategies demonstrating strong relative and absolute performance

“One-Firm” Approach

• Leverages the intellectual capital of KKR

• Provides for a highly scalable core

Long Runway for Growth

• New businesses still early in life cycle

• Significant untapped market potential

Note: Participation of private equity, KKR Capital Markets, and KKR Capstone personnel in the KAM investment process is subject to applicable inside information barrier policies and procedures, which may limit the involvement of these personnel in certain circumstances.

145

KKR Capital Markets Craig J. Farr

146

The Capital Markets Opportunity in the Private Equity Industry

In 2007, the global investment banking fee wallet was >$73 bn

In 2007, private equity firms accounted for ~24% of the fee wallet

Global capital markets business was dominated by five large players

The few large players bundled capital, advice, and distribution services

Source: Dealogic.

147

Evolution of the Business

We have evolved from a small team focused on syndicating excess private equity to a full-service, standalone business able to lead a variety of capital markets transactions globally

Markets improve, opening door

for new deals and exits

KCM Professionals: 15

2009

Large private equity checks

KCM Professionals: 4

2007

Credit crisis closes markets

KCM Professionals: 10

2008

Further improved capital markets

KCM Professionals: 26

2010 and Today

148

KCM Today: Full-Service Capital Markets Advisory/Underwriting

Expand capacity for private equity and

mezzanine transactions

Optimize cost of capital, enhance capital structure

flexibility

Maximize investor return in the long

term

• Ownership

• Refinancing• New issuance• Exchange offers• Amend-to-extend

• Buybacks

Ownership • Exit

• Pre-IPO equity

• IPOs

• Follow-ons

• Equity-linked

ExitAcquisition Finance

• PE co-invest syndication

• Mezzanine

• Credit facilities

• High yield

Acquisition Finance

149

How KCM Creates Value: Key Pillars

150

Aligned Advice Drives Greater Access to Capital

• Led execution/marketing of IPO

• Valuation premium to closest peer

• Allocated to “sticky" shareholder base, setting foundation for long-term monetizations

+33% IPO-to-date

Historical Stock PerformanceHistorical Stock Performance

• Instrumental in developing unique backstopped discounted rights offering through 3rd-lien PIK convertible notes

• Direct dialogue with ABL providers and 1st-lien bond investors provided comfort on refinancing structure

Historical PIK Convert Performance

Historical PIK Convert Performance

+236% since issuance

Note: Stock price performance as of 3/9/2011. Dollar General IPO occurred on 11/12/2009. Sealy rights offering and third-lien convert issuance occurred on 5/27/2009. Historic market trends may not be predictive of future market performance or future results. Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

100%

120%

140%

160%

Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11

100%

200%

300%

400%

500%

Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11

151

Holistic Risk Management

$14 bn

$32 bn

2009 2010

KKR Portfolio Company Refinancing Volume

(1) Reflects all KKR portfolio company refinancings including those in which KKR Capital Markets did not participate.

152

Benefits Across Key Stakeholders

Limited Partners

• Source larger, unique deals

• Flexible capital enhances upside

• Product flows for limited partners

• Better exits

Other Parts of KKR

• Allows PE to focus on industry specialization/corporate relationships

• Expands KAM mezzanine capabilities

• Improves CPG relationships

Public Unitholders

• Source of fee related earnings

• More carry derived from larger equity commitments

• Better capital structures enhance equity value

• Greater return on balance sheet capital

• More fund commitments from close limited partner relationships

153

$105.3 mm

$34.1 mm

$18.2 mm

$79.1 mm

$18.7 mm$5.3

mm

10

15

26

2008 2009 2010

Fees Fee Related Earnings Headcount

Financial Results to Date: A High-Margin Business for KKR

Margins: 29.1% 54.7% 75.1%

154

How Does KCM Get Paid?

Conventional ModelConventional Model KCM ParticipationKCM Participation

Bank 4

Bank 1

Bank 3

Bank 2

KCM

Bank 4

Bank 1

Bank 3

Bank 2

155

Synergy with Other Parts of KKR: Private Equity

Large maturity towers in 2014

through 2016 and a desire to

proactively extend

• Negotiated with key bond holders

• Executed large-scale exchange

• Resulted in $6.5 bn of debt extended to 2020+

SituationSituation KCM Value-AddKCM Value-Add

Visant had deleveraged and

KKR was interested in

returning some capital to LPs

• Dividend recapitalization with customized terms

• Developed anchor orders and committed capital to ensure strong market execution

SituationSituation KCM Value-AddKCM Value-Add

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

156

Synergy with Other Parts of KKR: KAM

Company sought to refinance

debt and desired capital

structure to suit acquisition

strategy

• Worked with KAM (which provided mezzanine note) to arrange senior credit facilities

• Aided with an amendment and incremental term loan to facilitate a strategic acquisition

SituationSituation KCM Value-AddKCM Value-Add

Sponsors sought to raise £1.1

bn of committed financing to

acquire an 80% stake in RBS

WorldPay for £2.0 bn

• KCM committed £127 mm to a £300 mm mezzanine tranche

• Helped to position KAM

• Mandated as arranger on junior financing

KCM Value-AddKCM Value-AddSituationSituation

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

157

Synergy with Other Parts of KKR: CPG

KKR and GA sought $900 mm of

committed financing to acquire

TASC from Northrop Grumman

in the largest LBO of 2009

• Direct dialogue geared towards mutually advantageous terms resulted in $100 mm allocation of term loan to a fund limited partner, while providing certainty of financing

SituationSituation KCM Value-AddKCM Value-Add

Flextronics was looking to sell a

PIK seller note, and was

considering a range of buyers

SituationSituation KCM Value-AddKCM Value-Add• KCM and CPG placed note with a

fund limited partner, ensuring placement with a long-term, aligned holder

• Limited partner and Asian Fund bought the note at substantial discount; investment marked at 1.5x cost at 12/31/2010

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

158

Synergy with Other Parts of KKR: Balance Sheet

KKR sought £485 mm of

committed financing to purchase

Pets at Home in a £1 bn

acquisition

• KCM underwrote ~20% of the senior facilities and arranged 100% of the mezzanine

• With KCM’s knowledge of the asset and investor relationships, KCM delivered more debt at a lower cost and better terms

SituationSituation KCM Value-AddKCM Value-Add

NXP was nearing IPO launch and

seeking to extend maturities,

but desired price protection in a

volatile market

• Partnered with underwriters to provide a $162.5 mm backstop on high yield execution

• Marketed the transaction to large existing bondholders and set stage for successful IPO

SituationSituation KCM Value-AddKCM Value-Add

Note: Portfolio companies identified above may not be representative of the entire portfolio, and results may not be typical.

159

More Opportunities for KCM to Grow

Larger balance sheet

Participate in more underwritings, generating more fees and good risk-

adjusted returns on capital

Recovering private equity and capital markets

More acquisition finance mandates, refinancings, and

exits

Strategic partnerships in origination and distribution

Broaden capabilities and deal flow

Increased penetration of non-KKR opportunities

Leverage the broader KKR platform to enhance our relationship with clients

Drivers Commentary

160

Client & Partner Group Suzanne O. Donohoe

161

More sophisticated servicing needed in a professionalized alternative asset

management industry

New sources of capital expand our

geographic horizons

Growing, diversifying firm demands broader

calling effort

Why Build Distribution at KKR?

KKR’s World Today

Clients More Global in Scope

Wider Application of Firm’s

Intellectual Capital

Greater Client Interaction

162

Building the Team

4

25

12

1

37

5

2

2003 2007 2010

US International

Global team of 37 executives dedicated to capital raising and relationship management

• Continuing to build in the Middle East and high net worth

Client & Partner Group Growth

163

Profile of Senior Professionals

Industry Tenure of Relationship Managers and Product Specialists

20+ years30%

10-15 years26%

15-20 years35%

<10 Years9%

Arden Asset Management

PineBridge Investments

Morgan Creek Asset Management LBO France

Goldman SachsBlackRockAlpInvest Citi

Morgan StanleyJP Morgan UBS HSBC Deutsche Bank

Former Employers

164

Who is Our Team Talking To?

Today, we have over 350 investors across all products on the KKR platform

Family Office/HNW

6%

Fund of Funds8%

Endowment/ Foundation

1%

US Public Pension

37%

Corporate Pension

3% Financial Institution/ Insurance

20%

Sovereign Wealth Funds/ Other

Government Entities

25%

North America

61%

Asia Pacific19%

Europe15%

Middle East5%

AUM by Investor Type AUM by Geography

Note: Percentages as of 12/31/2010. Based on the AUM of our Private Markets investment funds (1996 Fund onward), Private Markets co-investment vehicles, and Public Markets separately managed accounts and investment funds.

165

Evolving the Dialogue with Existing Investors and Prospects

2003 2009 2010 2011

Private Equity Teams

Mezzanine, Infrastructure

Teams

Chief Investment Officers (“CIOs”)

Private Equity Teams

Mezzanine, Infrastructure,

Real Assets Teams

CIOs

Heads of Fixed Income

Private Equity Teams

Mezzanine, Infrastructure,

Real Assets Teams

Hedge Fund Allocators

Heads of Fixed Income

CIOs

Private Equity Teams

166

(1) Defines successor funds in a particular geography as same strategy, but new geographies, new asset classes, or new strategies as cross-sell.

Realizing Our Cross-Sell Potential

1.5 average mandates per

investor(1)

2.0 target average

mandates per investor

Large opportunity to bring existing investors into other products on the KKR platform

2011 2012 2013 2014 2015 2016

167

Growing Our Investor Franchise

Investors/Mandates Today

Avera

ge N

ew

M

an

date

s p

er

Year

Existing Investors

New Investors

2016 Aspirational Target Mandates

525

175

250-300

~1,000

350 x 1.5

~35/year over five years

~50-60/year over five years

168

35% of capital raised in 2010 came from new investors

Strategy Total Capital Raised(1)

% New Investors(2)

China Growth(3)

$1,000 mm 40%

Infrastructure $1,565 mm 14%

Mezzanine $484 mm 77%

Oil & Gas $250 mm 0%

Other(4)

$2,085 mm 44%

Total Capital Raised in 2010 $5.4 bn 35%

New vs. Existing Investors in Recent Fundraising

(1) Limited partner dollars only; excludes general partner commitments.(2) By dollars committed.(3) As of final close of fund, which occurred subsequent to 12/31/2010.(4) Includes all other strategies for which capital was raised: credit funds and separately managed account vehicles, private equity and private equity co-

investments, and multi-strategy mandates.

169

~70% of capital raised in 2010 was for first-time strategies

• KKR’s first-time strategies have generally had fundraising success relative to others in the market in 2010, for example China Growth

The Big Picture: Capital Raised in 2010

Note: Past performance is no guarantee of future results. Source: Preqin; data as of 9/2010. KKR data as of 12/2010.(1) Subsequent to the end of 2010, KKR China Growth Fund held a final close at its hard cap of $1 bn.

Average China Fund

$508 mm

$166 mm

$944 mm(1)

20 Funds

3 Funds

1 Fund

Industry First-Time Funds China Growth Fund

170

Raised $1 bn in third-party capital for China Growth Fund

• Public pensions, funds-of-funds, and sovereign wealth funds/other government entities accounted for ~2/3 of total commitments

• 40% of our external commitments came from new investors

New Investors

40%

Existing Investors

60%

Case Study: China Growth Fund

Endowment2% US Public

Pension20%

Fund-of-Funds19%

Financial Institution

6%

High Net Worth16%

Sovereign Wealth

Funds/Other Government

Entities27%

Corporate10%

Dollars Raised by Investor Type Dollars Raised by New/Existing

Note: All figures shown as of final close on the China Growth Fund, which occurred during the first quarter of 2011.

171

Riding Some Powerful Waves

• Low-return environment

focus on alternatives

• Emphasis on diversification of asset classes

• Concern over conflicts/transparency

• Aftermath of Volcker Rule

• Growth and diversification of sovereign wealth funds/other government entities

• Flight to quality managers and brands post-crisis

• Investors’ desire to scale relationships

172

• 90%+ of team >10 years experience

• Best-in-class sales, service, and holistic, solutions-driven approach

• Ability to continue to attract talent given brand/performance

• By geography

• By investor type

• By asset class

• Better leverages our calling effort

• Allows us to create “stickier” investors

The Result of Our Investment in Distribution

KKR’s World Tomorrow

More Diversified Investor Base

More Mandates Per Investor

Professionalized Investor

Acquisition and Servicing

173

Financial Overview William J. Janetschek

174

• Capital Markets• Balance Sheet Assets

Consistent AUM Growth with Increasing Diversification

14.419.7

31.936.5

31.838.8

46.23.7

5.1

10.813.1

13.4

14.8

0.8

2004 2005 2006 2007 2008 2009 2010

Private Markets AUM Public Markets AUM

$15.1 bn$23.4 bn

$37.0 bn

$47.2 bn$44.9 bn

$52.2 bn

$61.0 bn

CAGR: 64%

CAGR: 21%

Third-Party AUM Business

$6.08

$6.93

$7.37

$7.63

$8.38

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Book Value/Adjusted Unit (1)

Note: Assets under management (AUM) are presented pro forma for the combination with KPE and therefore exclude the net asset value (NAV) of KPE and its former commitments to KKR’s investment funds. See Important Information for additional disclosures.

(1) Adjusted units represent the fully diluted unit count using the if-converted method. See Appendix I for a reconciliation to the comparable GAAP metric.

• Private Equity• Natural Resources• Infrastructure

• Liquid Credit• Mezzanine• Special Situations• Equity Strategies

Public MarketsPrivate Markets Capital Markets & Principal Activities

26% CAGR

38% y-o

-ygro

wth

175

Evolving Mix of Assets and Earnings

AUM Fee Related Earnings (FRE)

Economic Net Income (ENI)

20

04

20

10

PublicMarkets

5%

Private Markets

95%

PublicMarkets

9%

Private Markets

91%

PublicMarkets

24%

Private Markets

76%

PublicMarkets

<1%

Private Markets>99%%

Capital Markets/PrincipalActivities

25% Private Markets

57%PublicMarkets

18%

Capital Markets/PrincipalActivities

60%

Private Markets

37%

PublicMarkets

3%

176

2010 Sources of Earnings

Note: See Important Information for additional disclosures.(1) Reduced by income attributable to noncontrolling interests.

FY 2010 % of Total

Fee Related Earnings $318 mm 15%

Net Carried Interest $608 mm 28%

Other Investment Income(1) $1,214 mm 57%

Economic Net Income $2,140 mm 100%

177

2010 GAAP to Segment Bridge

(1) Presented before noncontrolling interests held by KKR Holdings and therefore represents 100% of the KKR business.

GAAP(1)

Segment

Segment

Income (Loss) Before Taxes $7,852

- (Income) Loss from Noncontrolling Interests in Consolidated Entities (6,544)

+ Non-Cash Equity Based Charges 824

+ Amortization of Intangibles and Other, Net 8

Economic Net Income $2,140

+ Income (Loss) Attributable to Noncontrolling Interests 4

- Net Carried Interest (608)

- Other Investment Income (1,218)

Fee Related Earnings $318

178

Sources of Earnings: Drivers

Private Markets Public Markets Capital Markets & Principal Activities

Fee Related

Earnings

•Management fees

•Monitoring fees

•Transaction fees

•Operating expenses

•Management fees

•Incentive fees

•Transaction fees

•Operating expenses

•Transaction fees

•Operating expenses

Net Carried

Interest

•Gross carried interest

•Allocation to KKR carry pool

•Management fee refunds

•Gross carried interest

•Allocation to KKR carry pool

•Not applicable

Other Invest-

ment Income

•Not meaningful •Not meaningful •Gains/losses on principal assets

•Interest expense

179

Long-Duration, Stable Asset Base

Permanent3%

10-18 Years90%

<10 Years7%

Committed/ Invested Capital88%

NAV12%

Note: Based on fee paying assets under management (FPAUM) as of 12/31/2010.(1) Time periods are measured from the time of a fund, account, or vehicle’s inception.

Contractual Life of FPAUM(1) Fee Paying Asset Base

180

Highly predictable management and monitoring fees, with upside from transaction fees, incentive fees, and termination payments

Long-Term Committed AUM Leads to Recurring, Predictable FRE

$510 $524 $540

$41

$169

$259

$151

$247

$318

2008 PF 2009 PF 2010

Management and Base Monitoring Fees Other Fees Fee Related Earnings(1) (2)

Note: Dollars in millions. 2008 and 2009 figures presented pro forma for the elimination of KPE management fees and certain other adjustments related to the Combination Transaction. Fee related earnings are net of fee credits and expenses. FRE margin is based on total fees, net of fee credits.

(1) Base monitoring fees exclude monitoring fee termination payments and are presented before fee credits to limited partners.(2) Other fees include transaction fees, monitoring fee termination payments, and incentive fees earned at KFN. Presented before fee credits to limited

partners.

FRE Margin: 28% 40% 43%

181

Significant Opportunity for Carried Interest

• Substantial capital entitled to receive carry• $36 bn of invested capital• $14 bn of dry powder• No hurdles in current private equity funds

• Carried interest is mark-to-market on P&L; cash carry paid on realized gains• Timing differences between carry on P&L and receipt of carry in cash• MTM carry and realized cash carry are the same over the life of a fund

Traditional Private Equity Funds

Accruing Carry

Paying Carry

Remaining Cost (mm)

Fair Value (mm)

European Fund Yes Yes $492 $2,249

Millennium Fund Yes Yes 3,965 5,743

Asian Fund Yes Yes 2,416 3,442

European Fund III Yes Close 2,247 2,343

2006 Fund Yes No 11,837 13,410

European Fund II No No 5,336 4,594

Unrealized gain of $5.5 bn

182

Historical Realized Gross Carried Interest

Note: The 2001 carried interest figure includes two large realizations from Duracell/Gillette and FleetBoston Financial, which contributed approximately 90% of the carried interest for that year. Both investments had been held for approximately ten years before being fully exited in 2001. Past performance is no guarantee of future results.

$190

$558

$97

$394$443

$709

$54$0

$370

$723

$536

$0

$100

$200

$300

$400

$500

$600

$700

$800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Re

alize

d C

arr

ied

In

tere

st

($ m

m)

$0

$10

$20

$30

$40

$50

$60

$70

AU

M (

$ b

n)

Realized Carried Interest AUM

Over $4.0 bn of Carry Realized Since 2000

183

Our policy is to distribute substantially all of our fee related earnings and realized cash carry

• Carry distributions have been limited in recent quarters, but have been the primary source of cash flow over a longer historical period

Distribution Policy

Distribution per Unit

% of Total

Fee Related Earnings $0.28 60%

Net Carried Interest $0.19 40%

Normal Distribution $0.47 100%

Additional Distribution $0.13

Total Distribution $0.60

Carried Interest

69%

Fee Related Earnings

31%

(1) Based on aggregate figures for the period from 2000-2010. Fee related earnings figures based on reported fee related earnings figures for 2004-2010 and a comparable internal metric for 2000-2003. KKR’s Public Markets business began generating fees in 2004 and KKR’s capital markets business began generating fees in 2008; historical data may not be indicative of future results.

2010 Distribution Historical Distributable Earnings(1)

184

Through the combination with KPE, KKR acquired a significant balance sheet

Permanent Balance Sheet Capital to Facilitate Growth

• General partner commitments

• Seed capital

• Capital markets funding

• Other organic/inorganic growth opportunities

• $5.3 bn of balance sheet capital invested in or committed to our funds and transactions

Permanent Capital to Accelerate Our Growth

Alignment of Interests with Our Limited Partners

185

Balance Sheet Highlights

• Sizable balance sheet

• $5.7 bn of book equity value ($8.38/adjusted unit(2))

• $4.8 bn of investments (~35% public securities)

• Ample liquidity

• Over $750 mm of cash

• $1.6 bn of available revolver capacity(3)

• Well capitalized and minimal

leverage

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

• $500 mm of senior notes is only debt outstanding

(1) Represents KKR’s total reportable segment balance sheet.(2) Adjusted units represent the fully diluted unit count using the if-converted method.(3) Pro forma for 2/2011 amendment on Corporate Credit Facility. Excludes $500 mm of undrawn revolver capacity for use in capital markets business.

Balance Sheet as of 12/31/2010(1)

(in mm, except per unit)

Private Equity Funds $2,049Co-Investments 2,305Other Investments 478

Total Investments $4,832

Cash and Cash Equivalents 756Unrealized Carry 526Other Assets 287

Total Assets $6,401

6.375% Notes due 2020 $500Other Liabilties/Noncontrolling Interests 175

Partners' Capital $5,726

Adjusted Units Outstanding 683.0

Book Value/Adjusted Unit(2) $8.38

186

Key Takeaways

• Strong AUM growth through expansion of private equity franchise and extension into new businesses

• Stable management and monitoring fees supported by long-term, locked-up capital

• Upside potential from transaction fees and monitoring fee termination payments in healthy capital markets environment

• Opportunity for significant realized carried interest as the environment for exits continues to improve

• $5.7 bn balance sheet to support growth

Opportunity for strong earnings and increased cash distributions

187

Positioning KKR for the Future Todd A. Fisher

188

Overview

We’ve organized KKR to support our diversified, global, and growing business

• Clear management structure

• Centralized governance framework with a particular emphasis on risk management

• Significant enhancement of firm infrastructure

• Meaningful investment in human capital

• Focus on talent development to prepare future leaders

• Compensation structure that aligns employees with firm culture, one another, limited partners, and unitholders

189

Global Presence and People

Over 700 people and 14 offices, including a global presence for each business and function

Public MarketsClient & Partner Group

San Francisco

Private MarketsKKR Capstone

Menlo Park

Private Markets

Houston

KKR Capstone

Washington, DC

Private MarketsKKR CapstonePublic MarketsCapital Markets

Client & Partner Group

New York & London

Private Markets

Paris

Private MarketsClient & Partner Group

Dubai

Private MarketsCapital Markets

Mumbai

Private MarketsClient & Partner Group

Sydney

Private MarketsKKR CapstoneCapital Markets

Client & Partner Group

Hong Kong

Private MarketsClient & Partner Group

Tokyo

Private Markets

Seoul

Private MarketsKKR Capstone

Client & Partner Group

Beijing

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

190

Significant Investment in Human Capital

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

757644

595

447

317

2006 2007 2008 2009 2010

Private MarketsPublic MarketsKKR CapstoneClient & Partner GroupCapital MarketsFirm InfrastructureStaff

Note: Reflects number of people at year-end. KKR Capstone is owned and controlled by its senior management and not KKR.

191

Management Structure

Co-CEOs Kravis & Roberts

Private Markets Public Markets Capital Markets & Principal Activities

Private Equity

Energy & Infra-

structureKKR Asset Management Capital

MarketsBalance Sheet

North America

Asia/ Pacific

Europe/ MENA

Lever- aged Credit

Special Situ-

ations

Mezz- anine

Public Equities

Public AffairsLegal &

Compliance FinanceInformation Technology

Human Resources

Client & Partner Group

KKR Capstone(1)

(1) KKR Capstone is owned and controlled by its senior management and not KKR. KKR Capstone is presented here only to illustrate the KKR businesses that they support.

192

Mon

ito

rin

g O

vers

igh

tGlobal Governance Structure

Formalized processes and functions in place to manage firm

• Global decision-making process

• Separate committees by strategy

Investment Committees

• Monitor investment portfolios across the firm’s businesses

Portfolio Manage- ment Function

Identifies and monitors key risks to firm

Risk Committee

• Reviews balance sheet investment decisions

• Oversees firm capital structure and liquidity

Balance Sheet Committee

• Coordinate quarterly valuations

• Ensure consistent global process

Valuation Committees

Management Committee

• Other firm-level matters

• Analyzes and addresses new/ potential conflicts of interest across businesses

Conflicts Committee

Tra

nsa

ctio

n O

vers

igh

t

193

• Public Company/Independent Board

• Registered Investment Adviser

• Regulated Broker-Dealer Activities

34-Year History of Managing Risk

• Strategic

• Reputational

• Legal

• Operational

• Financial and Liquidity

• Culture

• People

• Limited Partners

• Unitholders

• Debt Holders

• Employees

• Portfolio Companies Risk

CommitteeA

cross

man

y

them

esOn b

ehal

f of

man

yco

nst

ituen

ts

Under strong

oversight

194

Firm Infrastructure

Finance

Information TechnologyPublic Affairs

Legal & Compliance Human Resources

Stakeholder management across firm and portfolio

Public communications

Regulatory expertise

Public company and limited partner reporting

Budgeting, planning, expense management

Enables better decisions through better information

Infrastructure and IT controls

Transaction support

Regulatory/compliance conflict management

Risk mitigation

Professional development/ training and mobility

Performance/meritocracy

Recruit, hire, integrate

195

Support functions are simplifying work across the firm, making us more efficient and driving bottom-line value

• Portfolio Central is a perfect example of how our IT team has streamlined private equity portfolio monitoring

Support Functions Enabling Firm Success: Portfolio Central

Margin monitoringMonthly

review of revenue, EBITDA,

cash flow, and leverage

Covenant headroom

alerts

Note: Data shown is for illustrative purposes only and does not represent actual performance.

196

Support Functions Enabling Firm Success: Portfolio Central

Portfolio Central has had tangible results in identifying key global issues

US Census Portfolio Company

L3M EBITDA May-10 Jun-10 Jul-10 % of total

Consumer 31.2% 20.7% 17.4% 6%

FIG 3.2% 0.4% 1.4% 16%

Healthcare 11.5% 5.3% 3.5% 41%

Media/Telecom 8.4% 7.8% 2.2% 12%

Retail 19.2% 13.5% 10.5% 17%

Technology (14.6%) (0.2%) (2.0%) 9%

All 10.2% 6.8% 4.4% 100%

Industry A

Industry B

Industry C

Industry D

Industry E

Industry F

Note: Data shown is for illustrative purposes only and does not represent actual performance.

197

Excellence

Culture and People are Paramount

Accountability

Innovative

Relationship- Driven

Integrity

Teamwork

198

Talent Development

Overarching goal is to maximize individual, team, and firm performance

• Clear expectations and performance criteria

• Accountability through robust evaluations

• Skills-based training

• Talent mobility

• Strong emphasis on leadership expectations

• Leadership development training

• Private coaching

All Individuals Managers

Focused development of…

199

Compensation Framework Underscores Our Alignment

Limited Partners Cross-Business

Unitholders

• Insider ownership: employees(1) own ~70%

• No cash bonus paid by public company for ~55 senior-most executives

• Holdback for future leaders

• One P&L encouraging cross-business teamwork

• Equity owned by individuals in every business and at every level

• Balance sheet makes us our own largest investor

• Carry drives bulk of income

(1) Includes KKR Capstone employees, although KKR Capstone is owned and controlled by its senior management and not KKR.

200

We’ve Built the Necessary Foundations for Continued Success

Strong team proactively developed and incentivized to drive aligned success

Support functions enabling efficiency and growth

Engrained culture of managing risk

Organized structure with clear governance

201

Summary

202

Summary of What You Have Heard Today

Private Equity: deep roots and

central to strategy

Energy & Infrastructure:

scaling

Public Markets: poised for

growth

Capital Markets:

high-margin and synergistic

Strong Businesses Positioned for Successwith Organizational Strength to Drive It

Deep, talented bench

Clear strategic vision

Permanent capital to invest in firm growth

Interests aligned with

yours

203

Appendix I Supplemental Financial Information

204

Segment results are reported on a deconsolidated basis to adjust for the impact of consolidating our private equity and certain other investment funds

GAAP vs. Segment

Illustrative GAAP vs. Segment Reporting Comparison

GAAP Reporting Segment ReportingFund Size $1,000 Fund Size $1,000Fee Rate 1.50% Fee Rate 1.50%Appreciation 20.0% Appreciation 20.0%

Management Fees – Management Fees $15.0

Monitoring/Transaction Fees $5.0 Monitoring/Transaction Fees $5.0Fee Credits – Fee Credits (4.0)

Net Monitoring/Transaction Fees $5.0 Net Monitoring/Transaction Fees $1.0

Total Fees $5.0 Total Fees $16.0

Gross Carried Interest $40.0Allocation to KKR Carry Pool (16.0)

Investment Income $200.0 Net Carried Interest $24.0

Noncontrolling Interests ($165.0) Noncontrolling Interests –

Income $40.0 Income $40.0

$ in mm

205

(1) Post-investment period fee rates typically 75 bps on invested capital with subsequent reductions over time.

Drivers of Earnings (Private Markets)

Year Ended($ in mm) 12/31/2010

Management Fees $396.2 Generally 100-150 bps on committed capital(1); no MTMIncentive Fees –

Management & Incentive Fees $396.2

Monitoring Fees $86.9 Contractual agreements; potential termination paymentsTransaction Fees 96.0 Deal fees for completed transactionsFee Credits (52.6) 80/20 fee sharing with LPs; no fee sharing on syndicated equity

Net Monitoring & Transaction Fees $130.4

Total Fees $526.6

Compensation & Benefits $159.6 ~55 senior-most executives receive no cash bonus at public companyOccupancy & Related Charges 36.4Other Operating Expenses 148.4 General and administrative costs + fund expenses

Total Expenses $344.3

Fee Related Earnings $182.3

Gross Carried Interest $1,202.1 20% of gains and no hurdles in current PE fundsAllocation to KKR Carry Pool (453.9) 40% of carried interest is allocated to KKR executivesManagement Fee Refunds (143.4) 20% of management fees returned when carry is recognized

Net Carried Interest $604.8Other Investment Income (1.6)

Total Investment Income $603.1

Income Attributable to NCI 0.8

Economic Net Income $784.6

206

(1) Lower fees on uninvested capital in certain vehicles.

Drivers of Earnings (Public Markets)

Year Ended($ in mm) 12/31/2010

KFN: 1.75% of NAV; Liquid Credit: 0.5-1.0% of NAVManagement Fees $57.1 Alternative Investments: 1.0-1.5% of committed/invested capital(1)

Incentive Fees 38.8 Hedge fund-style performance fee at KFN; no high watermarkManagement & Incentive Fees $95.9

Monitoring Fees –Transaction Fees 19.1 Deal fees for completed Mezzanine/Special Situations transactionsFee Credits (12.3) Various fee sharing arrangements

Net Monitoring & Transaction Fees $6.8

Total Fees $102.7

Compensation & Benefits $29.9 ~55 senior-most executives receive no cash bonus at public companyOccupancy & Related Charges 2.4Other Operating Expenses 13.4 General and administrative costs + fund expenses

Total Expenses $45.7

Fee Related Earnings $57.0

Gross Carried Interest $5.0 10-20% of gains with 8% hurdle in Alternative Investments vehiclesAllocation to KKR Carry Pool (2.0) 40% of carried interest is allocated to KKR executivesManagement Fee Refunds –

Net Carried Interest $3.0Other Investment Income 0.7

Total Investment Income $3.7

Income Attributable to NCI 0.5

Economic Net Income $60.1

207

Drivers of Earnings (Capital Markets & Principal Activities)

Year Ended($ in mm) 12/31/2010

Management Fees –Incentive Fees –

Management & Incentive Fees –

Monitoring Fees –Transaction Fees 105.3 Equity and debt underwriting; debt placement; PE syndicationFee Credits –

Net Monitoring & Transaction Fees $105.3

Total Fees $105.3

Compensation & Benefits $16.9 ~55 senior-most executives receive no cash bonus at public companyOccupancy & Related Charges 0.9Other Operating Expenses 8.4 General and administrative costs

Total Expenses $26.2

Fee Related Earnings $79.1

Gross Carried Interest –Allocation to KKR Carry Pool –Management Fee Refunds –

Net Carried Interest –Other Investment Income 1,219.1 Income on balance sheet investments

Total Investment Income $1,219.1

Income Attributable to NCI 3.0

Economic Net Income $1,295.1

208

2010 Segment P&L

(Amounts in thousands)Year Ended December 31, 2010

Private Markets Segment

Public Markets Segment

Capital Markets and Principal

Activities Segment

Total Reportable Segments

FeesManagement Fees 396,227$ 57,059$ -$ 453,286$ Incentive Fees - 38,832 - 38,832

Management and Incentive Fees 396,227 95,891 - 492,118

Monitoring Fees 86,932 - - 86,932 Transaction Fees 96,000 19,117 105,266 220,383 Fee Credits (52,563) (12,336) - (64,899)

Net Monitoring and Transaction Fees 130,369 6,781 105,266 242,416

Total Fees 526,596 102,672 105,266 734,534

ExpensesEmployee Compensation and Benefits 159,561 29,910 16,863 206,334 Occupancy and Related Charges 36,395 2,375 945 39,715 Other Operating Expenses 148,357 13,430 8,376 170,163

Total Expenses 344,313 45,715 26,184 416,212

Fee Related Earnings 182,283 56,957 79,082 318,322

Investment Income (Loss)Gross Carried Interest 1,202,070 5,000 - 1,207,070 Less: Allocation to KKR Carry Pool (453,872) (2,000) - (455,872) Less: Management Fee Refunds (143,446) - - (143,446)

Net Carried Interest 604,752 3,000 - 607,752 Other Investment Income (Loss) (1,643) 718 1,219,053 1,218,128

Investment Income (Loss) 603,109 3,718 1,219,053 1,825,880

Income (Loss) Before Taxes 785,392 60,675 1,298,135 2,144,202 Income (Loss) Attributable to Noncontolling Interests 839 537 3,033 4,409

Economic Net Income 784,553$ 60,138$ 1,295,102$ 2,139,793$

Assets Under Management 46,223,900$ 14,773,600$ -$ 60,997,500$ Fee Paying Assets Under Management 38,186,700 7,824,400 – 46,011,100Committed Dollars Invested 4,555,700 697,600 – 5,253,300Uncalled Commitments 12,625,900 1,448,800 – 14,074,700

209

Segment Balance Sheet

(1) Adjusted units represent the fully diluted unit count using the if-converted method.

(Amounts in thousands, except per unit amounts)As of December 31, 2010

Private Markets Segment

Public Markets Segment

Capital Markets and Principal

Activities Segment

Total Reportable Segments

Cash and Cash Equivalents 229,729$ 10,007$ 516,544$ 756,280$

Investments - - 4,831,798 4,831,798

Unrealized Carry 523,002 3,001 - 526,003

Other Assets 194,424 53,222 39,730 287,376

Total Assets 947,155$ 66,230$ 5,388,072$ 6,401,457$

Debt Obligations -$ -$ 500,000$ 500,000$

Other Liabilities 104,248 10,193 45,837 160,278

Total Liabilities 104,248$ 10,193$ 545,837$ 660,278$

Noncontrolling Interests (1,750)$ 766$ 16,537$ 15,553$

Partners' Capital 844,657$ 55,271$ 4,825,698$ 5,725,626$

Book Value per Adjusted Unit(1) 1.24$ 0.08$ 7.06$ 8.38$

210

Segment Investment Detail

Capital Markets and Principal ActivitiesSegment Schedule of Investments (Amounts in thousands)

As of Dember 31, 2010Cost Fair Value % of Total

Dollar General $164,291 $575,862 11.9%HCA 201,444 436,473 9.0%Alliance Boots 301,352 304,192 6.3%Nielsen 156,839 235,258 4.9%NXP 250,000 198,253 4.1%Biomet 151,443 151,443 3.1%US Foodservice 100,000 120,000 2.5%ProSieben 226,913 106,731 2.2%First Data 135,258 81,155 1.7%KION 128,058 55,199 1.1%Energy Future Holdings 200,000 40,000 0.9%PagesJaunes 235,201 – –Capmark 137,321 – –

Co-Investments in Portfolio Companies $2,388,120 $2,304,566 47.7%

2006 Fund $1,080,930 $1,148,646 23.8%Asian Fund 177,996 237,606 4.9%European Fund III 183,368 193,090 4.0%European Fund 144,133 189,240 3.9%Millennium Fund 195,164 181,989 3.8%European Fund II 95,974 83,923 1.7%Annex Fund 9,432 13,334 0.3%China Growth Fund 1,479 1,479 0.0%

Private Equity Funds $1,888,476 $2,049,307 42.4%

Other Investments 505,820 477,925 9.9%

Total Investments $4,782,416 $4,831,798 100.0%

211

Investment Vehicle Summary

(Amounts in millions, except percentages)

Investment Period Amount

Commen- Percentagecement End Uncalled Committed Remaining Fair

Private Markets Date Date Commitment Commitments by GP Invested Realized Cost Value

China Growth Fund 11/2010 11/2016 $943.8 $837.5 1.1% $106.3 – $106.3 $106.3Annex Fund 08/2009 11/2011 539.4 424.6 4.2% 114.8 – 114.8 165.9European Fund III 03/2008 03/2014 5,956.2 3,709.6 4.5% 2,246.6 – 2,246.6 2,342.8Asian Fund 07/2007 07/2013 3,983.2 1,567.6 2.5% 2,415.6 – 2,415.6 3,442.22006 Fund 09/2006 09/2012 17,642.2 4,726.5 2.1% 12,915.7 2,405.1 11,836.5 13,410.2European Fund II 11/2005 10/2008 5,750.8 – 2.1% 5,750.8 761.6 5,335.9 4,594.0Millennium Fund 12/2002 12/2008 6,000.0 – 2.5% 6,000.0 6,056.3 3,965.3 5,742.5European Fund 12/1999 12/2005 3,085.4 – 3.2% 3,085.4 6,525.0 492.3 2,249.4

Private Equity Funds 43,901.0 11,265.8 32,635.2 15,748.0 26,513.3 32,053.3

Co-Investment Vehicles Various Various 3,194.4 659.3 Various 2,535.1 316.4 2,447.8 3,057.5Natural Resources I 03/2010 10/2013 257.5 185.8 2.9% 71.7 – 71.7 71.7Infrastructure Fund 09/2010 09/2016 515.0 515.0 9.7% – – – –

Private Markets Total $47,867.9 $12,625.9 $35,242.0 $16,064.4 $29,032.8 $35,182.5

Public Markets

Capital Solutions Various Various $1,757.0 $1,018.2 Various $738.8 – $738.8 $787.7Mezzanine Fund 03/2010 03/2015 558.6 430.6 8.1% 128.0 – 128.0 125.2

Public Markets Total $2,315.6 $1,448.8 $866.8 – $866.8 $912.9

Total $50,183.5 $14,074.7 $36,108.8 $16,064.4 $29,899.6 $36,095.4

Note: As of 12/31/2010.

212

Reconciliation of Fee Related Earnings and Economic Net Income to Net Income Attributable to KKR & Co. L.P.

Year Ended(Amounts in thousands) 12/31/2010

Total reportable segments fee related earnings $318,322Investment income 1,825,880Less: Income attributable to noncontrolling interests (4,409)

Economic net income (loss) $2,139,793Income taxes (75,360)Amortization of intangibles and other, net (7,785)Non-cash equity based charges (824,193)Allocation to noncontrolling interests held by KKR Holdings L.P. (899,277)

Net (income) loss attributable to KKR & Co. L.P. $333,178

213

Reconciliation of Total Reportable Segments Partners’ Capital to KKR & Co. L.P. Partners’ Capital

As of(Amounts in thousands) 12/31/2010

Total Reportable Segments Partners' Capital $5,725,626

Equity Impact of Management Holdings Corp. and Other (52,745)

Noncontrolling Interests Held by KKR Holdings L.P. (4,346,388)

Total KKR & Co. L.P. Partners' Capital $1,326,493

214

Reconciliation of GAAP Common Units Outstanding to Adjusted Units

As of As of As of As of As of12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010

GAAP Common Units Outstanding - Basic 204,902,226 204,902,226 204,902,226 204,902,226 212,770,091

Unvested Common Units(1) – – – – 30,000

GAAP Common Units Outstanding - Diluted 204,902,226 204,902,226 204,902,226 204,902,226 212,800,091

KKR Holdings Units(2) 478,105,194 478,105,194 478,105,194 478,105,194 470,237,329

Adjusted Units 683,007,420 683,007,420 683,007,420 683,007,420 683,037,420

(1) Represents equity awards granted under the KKR & Co. L.P. 2010 Equity Incentive Plan. The issuance of common units of KKR & Co. L.P. pursuant to awards under its equity incentive plan dilutes KKR common unitholders and KKR Holdings pro rata in accordance with their respective percentage interests in the KKR business.

(2) Common units that may be issued by KKR & Co. L.P. upon exchange of units in KKR Holdings L.P. for KKR common units.

215

Appendix II Speaker Biographies

216

George R. Roberts (Menlo Park), a pioneer of the private equity industry, co-founded Kohlberg Kravis Roberts & Co. in 1976. For over thirty years, George Roberts, along with KKR co-founder Henry Kravis, has led the firm in its growth into a leading global investment firm. He participates in all of KKR’s investment activities, and serves on the Investment, Portfolio Management, and Management Committees.

Prior to co-founding KKR, George Roberts was in the Corporate Finance Department of Bear Stearns & Company from 1969 to 1976. During this time, he became a partner at age 29 and, along with Mr. Kravis and Jerome Kohlberg, pioneered the use of leverage in acquisitions.

After graduating from Culver Military Academy in 1962, George Roberts earned a B.A. from Claremont McKenna College in 1966, and a J.D. from the University of California (Hastings) Law School in 1969. He has been a member of the board of directors of numerous public and private companies, and he currently serves as a director or trustee of several cultural and educational institutions, including the San Francisco Symphony and Claremont McKenna College.

George Roberts is founder and Chairman of the board of directors of REDF, a San Francisco non-profit organization. REDF uses the practices of venture philanthropy to create job opportunities through the support of social enterprises that help people gain the skills to help themselves.

Speaker Biographies

217

Speaker Biographies

Henry R. Kravis (New York), a pioneer of the private equity industry, co-founded Kohlberg Kravis Roberts & Co. in 1976. For over thirty years, Mr. Kravis, along with KKR co-founder George Roberts, has led the firm in its growth into a leading global investment firm. He is actively involved in managing the firm and serves on the Investment, Portfolio Management, and Management Committees.

Prior to co-founding KKR, Henry Kravis was in the Corporate Finance Department of Bear Stearns & Company from 1969 to 1976. During this time, he, along with George Roberts and Jerome Kohlberg, pioneered the private equity industry.

Henry Kravis earned a B.A. in Economics from Claremont McKenna College and an M.B.A. from the Columbia University Graduate School of Business. Over the years, he has been a member of the board of directors of numerous public and private companies. He currently serves on the board of First Data Corporation and China International Capital Corporation. He also currently serves as a director or trustee of several cultural and educational institutions, including the Partnership for New York City, Mount Sinai Hospital, Columbia Graduate School of Business (where he is co-chairman of the board), Rockefeller University (vice-chair), Claremont McKenna College, and the Council on Foreign Relations.

Mr. Kravis is co-chairman of the New York City Investment Fund (NYCIF), a non-profit organization he founded in 1996 to create jobs and help small businesses in New York City. In response to other targeted needs that have arisen in the city, the Fund has created special purpose programs. For example, the NYCIF was responsible for raising $11 million to provide 88 recoverable grants to small businesses in Lower Manhattan that suffered damage following the events of September 11, 2001.

At Claremont McKenna College, he founded the Kravis Leadership Institute and established the Kravis Prize in Leadership, which is awarded annually to an international non-profit organization that demonstrates leadership, creativity, and sustainability.

218

Speaker Biographies

Alexander Navab (New York) joined KKR in 1993. He co-heads KKR’s North American Private Equity business and heads the Media/Communications industry team in the US. Mr. Navab played a significant role in the development of Borden, Intermedia Communications, KSL Recreation, Neway Anchorlok, Newsquest Media, The Nielsen Company (formerly VNU Group) NuVox (NewSouth Communications), PanAmSat, RELTEC, Tenovis, Visant, Yellow Pages Group, World Color Press, Zhone Technologies, and Weld North. He is currently on the board of directors of The Nielsen Company, Weld North, and Visant. Mr. Navab also serves on KKR’s Investment Committee and Management Committee. Prior to joining KKR, Mr. Navab was with James D. Wolfensohn Incorporated where he was involved in mergers and acquisitions as well as corporate finance advisory work. From 1987 to 1989, he was with Goldman, Sachs & Co. where he worked in the Investment Banking Department. He received a B.A. with honors, Phi Beta Kappa, from Columbia College, and an M.B.A. with high distinction, Baker Scholar, Wolfe Award, from the Harvard Business School. Mr. Navab is a member of the Leadership Council of the Robin Hood Foundation, and serves on the Board of Visitors of Columbia College.

Michael W. Michelson (Menlo Park) joined KKR in 1981. Since then, he has been directly involved with numerous portfolio companies. He played a significant role in the development of Accellent, Alliance Imaging, Amphenol, AutoZone, Beatrice Companies, Biomet, Dillingham, Golden West, HCA, Jazz Pharmaceuticals, KinderCare Learning Centers, Lily Tulip, M & T, Malone & Hyde, Fred Meyer, Owens-Illinois, and Union Texas Petroleum. He currently serves on the board of directors of Biomet, HCA, and Jazz Pharmaceuticals. He co-heads KKR’s North American Private Equity business and heads the Health Care industry team. Mr. Michelson is also a member of KKR’s Investment Committee and Management Committee. Mr. Michelson began his professional career with the law firm of Latham & Watkins in Los Angeles, where he was involved in a broad corporate practice while specializing in management buyouts. He has an A.B., cum laude, Phi Beta Kappa, from Harvard College and a J.D., cum laude, from Harvard Law School.

219

Speaker Biographies

Johannes P. Huth (London) joined KKR in 1999 and during that time has played a significant role in the development of ATU, Demag, Duales System Deutschland (DSD), KION, MTU Aero Engines, FL Selenia, NXP (formerly Philips Semiconductor), Wincor Nixdorf, Zumtobel, Pro7 Sat1, BMG, and Wild. Currently he is on the board of directors of ATU, KION, NXP, and ProSiebenSat.1. Mr. Huth manages KKR’s operations in Europe and is a member of the Investment and Management Committees. He started his professional career with Salomon Brothers in the Mergers and Acquisitions department in New York and London where he was a Vice President. Following that, he worked with Investcorp in London, where he was a member of their Management Committee and was jointly responsible for operations in Europe. While at Investcorp, Mr. Huth led a number of transactions in Europe. He holds a B.Sc. with highest honors from the London School of Economics and an M.B.A. from the University of Chicago.

Joseph Y. Bae (Hong Kong) has been at KKR for 14 years and is the Managing Partner of KKR Asia. Mr. Bae is a member of KKR’s Management Committee and Risk Management Committee as well as its Asia Portfolio Management and Asia Investment Committees. During his tenure with KKR he has played a significant role in the investments in Oriental Brewery, BIS Cleanaway, Borden, Elmers, Inc., MMI, Unisteel, PanAmSat, PRIMEDIA, Regal Cinemas, Seven, Shoppers Drug Mart, Visant, World Color Press, and Yellow Pages Group. Currently, he is on the board of directors of Seven and Oriental Brewery. Mr. Bae, who had been located in the New York office, moved to Hong Kong in late 2005 to establish KKR’s Asian operations. Prior to KKR, Mr. Bae worked for Goldman, Sachs & Co. in its Principal Investment Area, where he was involved in a broad range of merchant banking transactions. He has a B.A., magna cum laude, from Harvard College.

220

Dean B. Nelson (New York) founded Capstone in 2000. He was formerly a senior partner with The Boston Consulting Group, ran the firm’s Chicago office, and was on the management committee. At The Boston Consulting Group, he focused primarily on the consumer goods and retail, industrial goods, and high technology industries. Mr. Nelson previously worked at Shell Oil Company. At Capstone, he has worked with Alliance Imaging, Dollar General, First Data, Laureate, Owens-Illinois, PRIMEDIA, Rockwood/Dynamit Nobel, Sealy, Toys ‘R’ Us, The Nielsen Company (formerly VNU Group), and Yellow Pages Group. He has previously served on the boards of Dollar General, Toys ’R’ Us, and the Yellow Pages Group. Mr. Nelson is Chairman of Primedia and is a Sealy board member. He holds a B.S., summa cum laude, from Purdue University and an M.B.A. with High Honors from The University of Chicago.

Speaker Biographies

Marc S. Lipschultz (New York) joined KKR in 1995 and is the global head of KKR’s Energy and Infrastructure business. Mr. Lipschultz currently serves as a member of KKR’s Management Committee and Infrastructure Investment Committee. He has played a leading role in many investments including DPL, International Transmission Company, Texas Genco, Energy Future Holdings (formerly TXU Corp.), East Resources, Hilcorp Resources, RPM Energy, El Paso Midstream, and Colonial Pipeline. Currently, Mr. Lipschultz is on the board of directors of Energy Future Holdings. Prior to joining KKR, Mr. Lipschultz was with Goldman, Sachs & Co., where he was involved in a broad array of mergers and acquisitions as well as the firm’s principal investment activities. He received an A.B., Honors and Distinction, Phi Beta Kappa, from Stanford University and an M.B.A. with High Distinction, Baker Scholar, from Harvard Business School. Mr. Lipschultz is actively involved in a variety of non-profit organizations, serving as chair of the Center for Curatorial Studies and as a member of the boards of the American Enterprise Institute for Public Policy Research, Bard College, Common Good, Michael J. Fox Foundation, and Mount Sinai Medical Center.

221

Kenneth B. Mehlman (New York) joined KKR in 2008 and is Global Head of Public Affairs. Prior to joining KKR, Mr. Mehlman was a partner at Akin Gump Strauss Hauer & Feld with a bi-partisan practice in legislative and regulatory counseling. He previously served in high- level positions on Capitol Hill and in the White House, including as Chairman of the Republican National Committee and Campaign Manager of President Bush’s successful re- election campaign. Mr. Mehlman is a trustee of the United States Holocaust Memorial Museum and of Franklin & Marshall College; a member of the Council on Foreign Relations and The American Enterprise Institute’s National Council; and serves on the board of directors at the American Foundation for Equal Rights, The IDEAL School of Manhattan, and on the Senior Advisory Committee of the Harvard University Institute of Politics. Mr. Mehlman graduated with a B.A. from Franklin & Marshall College and holds a J.D. from Harvard Law School.

Speaker Biographies

Scott C. Nuttall (New York) joined KKR in 1996 and heads KKR's Global Capital and Asset Management Group which includes the Client and Partner Group, KKR Capital Markets and KKR Asset Management. He has played a significant role in KKR's private equity investments in Alea Group Holdings, Amphenol, Bristol West Holdings, Capmark Financial, First Data Corporation, KinderCare Learning Centers, Legg Mason, Masonite International, Walter Industries and Willis Group. He is currently a member of the board of directors of First Data Corporation, KKR Financial Holdings and Legg Mason. He is also actively involved in funds affiliated with the Firm, including KKR Private Equity Investors and KKR Financial Holdings, and is a member of the Firm's Management Committee. Prior to joining KKR, he was with the Blackstone Group where he was involved in numerous merchant banking and merger and acquisition transactions. He received a B.S., summa cum laude, from the University of Pennsylvania.

222

William C. Sonneborn (San Francisco) joined KKR in 2008 and heads KKR Asset Management, which advises KKR Financial Holdings LLC, of which he is the CEO. He is a member of the Credit, Mezzanine, and Capital Solutions Investment Committees and the KKR Asset Management Portfolio Management Committee. Prior to joining KKR, he spent over ten years at The TCW Group, Inc., most recently as President and Chief Operating Officer and CEO of The TCW Funds, Inc. and a member of the executive committee of Société Générale Asset Management, S.A. His responsibilities at TCW included overseeing and developing portfolio management, operations and sales and marketing in both traditional and alternative investments. He has also served as member of the board of directors of The TCW Group, Inc. and Sompo Japan Asset Management in Tokyo, Japan. Prior to TCW, he spent six years in investment banking at Goldman, Sachs & Co. in both New York and Hong Kong, predominantly focused on executing mergers and acquisitions for financial institutions. Mr. Sonneborn graduated with honors from Georgetown University.

Craig J. Farr (New York) joined KKR in 2006 and is head of KKR’s Capital Markets team. Mr. Farr is driving the build-out of the structuring, capital markets advisory, and distribution resources in KKR’s global capital markets business. Mr. Farr also is a member of the firm’s Risk Management Committee. Prior to joining KKR, Mr. Farr spent 12 years at Citigroup Global Markets Inc., where he was promoted to Managing Director in 2001 and served as Co-Head of North American Equity Capital Markets. Mr. Farr’s previous responsibilities included Head of US Convertible and Corporate Equity Derivative Origination. He began his career at Salomon Brothers in the investment banking division. Mr. Farr graduated with a Bachelor of Commerce from Queen’s University in Kingston, Canada.

Speaker Biographies

223

William J. Janetschek (New York) joined KKR in 1997. He currently serves as the firm’s Chief Financial Officer. Prior to joining KKR, he was a Tax Partner with the New York office of Deloitte & Touche LLP. Mr. Janetschek was with Deloitte & Touche for 13 years. He holds a B.S. from St. John’s University and an M.S., Taxation, from Pace University, and is a Certified Public Accountant.

Speaker Biographies

Suzanne O. Donohoe (New York) joined KKR in 2009. Prior to joining KKR, she spent nearly 17 years with The Goldman Sachs Group, where she was a Partner for her last eight years. Most recently, she was based in London and served as the head of Goldman Sachs Asset Management International (GSAMI), leading GSAMI activities outside the United States with a specific focus on managing client-facing professionals and activities across all product lines internationally. Prior to heading GSAMI, Ms. Donohoe headed Goldman Sachs Asset Management’s client businesses in North America. Ms. Donohoe received her M.B.A. from the Wharton School at the University of Pennsylvania and her undergraduate degree from Georgetown University.

224

Speaker Biographies

Todd A. Fisher (New York) joined KKR in 1993. Since July 2008, he has been the global Chief Administrative Officer for KKR, responsible for overseeing the finance, legal, IT, HR, communications, and public affairs functions, as well as coordinating with the various businesses and geographies of the firm on strategy, risk management, and control infrastructure. He currently sits on KKR’s Investment Committee and chairs its Management Committee. Since joining KKR in 1993, he has been involved in a range of companies and industries. He led the firm’s acquisitions of Vendex KBB, Dynamit Nobel, Rockwood Specialties Inc., and Northgate Information Solutions and was a leading member of the KKR teams responsible for the Alea Group Holdings Ltd., Bristol West Group, Merit Behavioral Care, and Willis Group Ltd. transactions. Prior to joining KKR, Mr. Fisher worked for Goldman, Sachs & Co. in New York and for Drexel Burnham Lambert in Los Angeles. Mr. Fisher graduated from Brown University with a B.A. in Biology and received an M.A. in International Affairs from Johns Hopkins University and an M.B.A. in Finance from the Wharton School at the University of Pennsylvania.

225

Appendix III Important Information

226

Please also refer to the important information contained in the section entitled “Legal Disclosures” located at the beginning of this presentation, which section is incorporated herein by reference in its entirety.

Fee related earnings (“FRE”): FRE is comprised of segment operating revenues, less segment operating expenses. The components of FRE on a segment basis differ from the equivalent U.S. GAAP amounts on a combined basis as a result of: (i) the inclusion of management fees earned from consolidated funds that were eliminated in consolidation; (ii) the exclusion of expenses of consolidated funds; (iii) the exclusion of charges relating to the amortization of intangible assets; (iv) the exclusion of charges relating to carry pool allocations; (v) the exclusion of non-cash equity charges and other non-cash compensation charges borne by KKR Holdings L.P.; (vi) the exclusion of certain reimbursable expenses and (vii) the exclusion of certain non-recurring items.

Economic net income (“ENI”): ENI is a measure of profitability for KKR’s reportable segments and is comprised of: (i) FRE; plus (ii) segment investment income, which is reduced for carry pool allocations and management fee refunds; less (iii) certain economic interests in KKR’s segments held by third parties. ENI differs from net income on a GAAP basis as a result of: (i) the exclusion of the items referred to in FRE above; (ii) the exclusion of investment income relating to noncontrolling interests; and (iii) the exclusion of income taxes.

Assets under Management (“AUM”): AUM represents the assets from which KKR is entitled to receive fees or a carried interest and general partner capital. AUM is calculated as of any date as the sum of (i) the fair value of the investments of our investment funds plus uncalled capital commitments from these funds, (ii) the fair value of investments in our co-investment vehicles, and (iii) the net asset value of certain of fixed income products, and (iv) the value of outstanding structured finance vehicles. KKR’s calculation of AUM may differ from the calculations of other investment firms and, as a result, KKR’s measurements of AUM may not be comparable to similar measures presented by other investment firms. KKR’s definition of AUM is not based on any definition of AUM that is set forth in the agreements governing the investment funds, vehicles or accounts (collectively, “Funds”) that KKR manages.

Fee paying AUM ("FPAUM"): FPAUM represents only those AUM from which KKR receives fees. FPAUM is the sum of all of the individual fee bases that are used to calculate KKR’s fees and differs from AUM in the following respects: (i) assets from which KKR does not receive a fee are excluded (i.e., assets with respect to which KKR received only carried interest); and (ii) certain assets, primarily in KKR’s private equity funds, are reflected based on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair value of underlying investments.

Combination Transaction: The Combination Transaction refers to the transaction to combine the businesses of KKR & Co. L.P. and KKR Private Equity Investors, L.P. (“KPE”), which was consummated on October 1, 2009.

Capstone: 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.

Important Information

227

Calculation of Gross Returns: Unless otherwise indicated, any references to “Gross IRR” or “gross returns” and any references to “multiples of invested capital”, “MOIC”, or “gross multiples” or multiples of “cost” are to the aggregate, annual, compound, gross internal rate of return on investments or multiples of invested capital, respectively. Such amounts are calculated at investment level and, accordingly, do not reflect management fees, carried interest and transaction costs and other expenses to be borne by investors in a Fund, which will reduce returns and in the aggregate are expected to be substantial. In the case of unrealized investments, the gross returns are based on internal valuations by KKR of unrealized investments as of the applicable date. The actual realized returns on a Fund’s unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, 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 these unrealized investments may differ materially from the returns indicated herein.

Calculation of Net Returns: Unless otherwise indicated, any references to “Net IRR” or “net return” or “net multiples” are to the internal rate of return or multiple of invested capital calculated at the Fund level, after payment of applicable management fees and carried interest and other applicable expenses; however, where net returns and net multiples are shown at the investment level, net returns and net multiples are before management fees, as management fees are applied only at the Fund level. 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.

Past Performance is No Guarantee: Information about any Fund and investments made by such Funds, including past performance of such Funds and investments, is provided solely to illustrate KKR’s investment experience, and processes and strategies used by KKR in the past with respect to such Funds. The performance information relating to KKR’s previous investments is not intended to be indicative of any Fund’s future results or the future results of KKR. Past performance is not a guarantee of future results. There can be no assurance that KKR or any Fund will achieve comparable results as those presented or that investors in a Fund will not lose any of their invested capital.

S&P Index and Other Indices: Any indices referred to in this presentation are used for purposes of comparison to the performance of certain capital markets. Unless otherwise noted, the return figures for these indices take into account changes in price and gross cash dividends paid in respect of securities comprising each index. The market index returns assume that on the day a portfolio investment is made, a hypothetical investment in a matching amount is made in the given index. For each date on which either a portion or all of the portfolio investment is sold, a hypothetical index multiple (factor) is calculated by comparing the change in index value between the two dates. The cost of the investment sold (or portion of cost sold) is multiplied by this factor, resulting in a hypothetical index value. The return is calculated using these dates of investment and hypothetical value(s) generated. The return figures for each index do not reflect the deduction of any taxes, expenses, transaction costs or advisory fees. Broad-based securities indices are unmanaged and are not subject to fees and expenses typically associated with Funds. It is not possible to invest directly in an unmanaged index.

Certain performance shown is compared to the S&P 500, a broad-based securities index. The S&P 500 is shown for informational purposes only. The performance of the S&P 500 represents unmanaged, passive buy-and-hold strategies, and investment characteristics that differ materially from any Funds, and an investment in a Fund is not comparable to an investment in such index or in the stocks that comprise the index. The risk/return profile of the S&P 500 is also typically materially different from that of any Fund. Further, unless otherwise specified, the S&P 500 is not used or selected by KKR as an appropriate benchmark to compare relative to the performance of any Fund, but rather it is included herein solely because it is a well-known and widely recognized index.

Important Information

228

Important Information

KAM’s Benchmarks:

(1 ) The Benchmarks referred to by KAM include the S&P/LSTA Leveraged Loan Index (the "S&P/LSTA Loan Index") and the Bank of America Merrill Lynch High Yield Master II Index (the "BoAML HY Master II Index" and, together with the S&P/LSTA Loan Index, the "Indices"). The S&P/LSTA Loan Index is an index that comprises all loans that meet the inclusion criteria and that have marks from the LSTA/LPC mark-to-market service. The inclusion criteria consist of the following: (i) syndicated term loan instruments consisting of term loans (both amortizing and institutional), acquisition loans (after they are drawn down) and bridge loans; (ii) secured; (iii) U.S. dollar denominated; (iv) minimum term of one year at inception; and (v) minimum initial spread of LIBOR plus 1.25%. The BoAML HY Master II Index is a market value weighted index of below investment grade U.S. dollar denominated corporate bonds publicly issued in the U.S. domestic market. "Yankee" bonds (debt of foreign issuers issued in the U.S. domestic market) are included in the BoAML HY Master II Index provided that the issuer is domiciled in a country having investment grade foreign currency long-term debt rating. Qualifying bonds must have maturities of one year or more, a fixed coupon schedule and minimum outstanding of US$100 million. In addition, issues having a credit rating lower than BBB3, but not in default, are also included. The indices do not reflect the reinvestment of income or dividends and the indices are not subject to management fees, incentive allocations or expenses. It is not possible to invest directly in unmanaged indices.

The foregoing disclosure applies equally to any comparison with the Merrill Lynch High Yield Master II Index, the MSCI World Index and the Russell 3000 Index. The Merrill Lynch US High Yield Master II Index is a commonly used benchmark index for high yield corporate bonds. The MSCI World Index is a stock market index of 1,500 'world' stocks, and is often used as a common benchmark for 'world' or 'global' stock funds. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies.

KKR Asset Management LLC ("KAM"): KAM is a Delaware limited liability company founded in August 2004. KAM consists of two divisions: the Marketable Securities Division and the Alternative Products Division. The Marketable Securities Division provides investment management and administrative services that follow a fixed-income and/or equity strategy generally investing in instruments with a readily determinable market value. The Marketable Securities Division holds itself out to the public as a separate division that claims compliance with the CFA Institute's Global Investment Performance Standards ("GIPS"). The Alternative Products Division provides investment vehicles that generally invest in instruments with a not readily determinable market value. The Alternative Products Division holds itself out to the public as a separate division that does not claim compliance with GIPS.

Additional Disclosure for KAM’s Gross and Net Returns: Returns are time-weighted and geometrically linked and unless otherwise stated, gross performance results are net of commissions and other direct expenses, but before management fees, custody charges, withholding taxes, and other indirect expenses. Net performance results are net of management fees, commissions, and other direct expenses, but before custody charges, withholding taxes, and other indirect expenses. All returns include the reinvestment of dividends. Differences in account size, timing of transactions and market conditions prevailing at the time of investment may lead to different results. Differences in the methodology used to calculate performance may also lead to different performance results than those shown.

229

Important Information

KAM’s Benchmarks (Continued):

(2 ) KAM’s Secured Credit model performance track record is presented as supplemental information. The Secured Credit model represents performance of KAM’s Secured Credit Levered composite calculated on an unlevered basis. KAM’s Secured Credit Levered composite has an investment objective that allows it to invest in assets other than senior secured term loans and high yield securities, which includes asset backed securities, commercial mortgage backed securities, preferred stock, public equity, private equity and certain freestanding derivatives. In addition, KAM’s Secured Credit Levered composite has employed leverage in its respective portfolios as part of its investment strategy. Gains realized with borrowed funds may cause returns to increase at a faster rate than would be the case without borrowings. The Secured Credit model 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: the returns of the Secured Credit Levered Composite calculated on an unlevered basis. 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. Changes in the assumptions may have a material impact on the model returns presented. The model performance is adjusted to reflect the reinvestment of dividends and other income and, except where indicated, the anticipated fees and expenses of the portfolio, including brokerage, custody, advisory and other fees. The Benchmark used for purposes of comparison for the Secured Credit strategy presented herein is the S&P/LSTA Loan Index. There are differences, in some cases, significant differences, between KAM’s investments and the investments included in the Indices. For instance, KAM’s composite may invest in securities that have a greater degree of risk and volatility, as well as liquidity risk, than those securities contained in the Indices.

(3 ) Performance is based on a blended composite of Bank Loans Plus High Yield strategy accounts. The Benchmark used for purposes of comparison for the Bank Loans Plus High Yield strategy is based on 65% S&P/LSTA Loan Index and 35% ML HY Master II Index.

(4 ) The Benchmark used for purposes of comparison for the High Yield Carve Out strategy presented herein is based on the Bank of America Merrill Lynch High Yield Master II Index. The High Yield carve-out is comprised of all investments included in KAM-sponsored portfolios that have been identified as "below investment grade" or were rated "BB" or lower at time of issuance by Standard & Poor's. The collection of investments included in the High Yield carve-out come from various investment funds, vehicles and accounts sponsored by KAM.

(5 ) Performance is a blended composite of accounts in the Opportunistic Credit strategy. The Benchmark used for purposes of comparison is the BoAML HY Master II Index.