2009 Fourth Quarter Economic Net Income of $515.3 million

2009 Full Year Pro Forma Economic Net Income of $1,953.9 million

Fourth Quarter Distribution of $0.08 per KKR Guernsey Common Unit

Election to Seek Listing on New York Stock Exchange

GUERNSEY, Channel Islands -- (BUSINESS WIRE) --

KKR & Co. (Guernsey) L.P. (Euronext Amsterdam: KKR), formerly known as KKR Private Equity Investors, L.P. ("KPE") and referred to as KKR Guernsey, today reported financial information of KKR¹ for the quarter ended December 31, 2009 and pro forma financial information² for the year ended December 31, 2009.

As previously announced on October 1, 2009, KKR and KKR Guernsey completed a transaction to combine their businesses (the "Business Combination"). In connection with the Business Combination, KKR acquired all of the assets and all of the liabilities of KKR Guernsey, and, in exchange, KKR Guernsey received interests in KKR Group Holdings L.P. ("Group Holdings") representing 30% of the outstanding equity in the combined business. KKR Guernsey's sole investment is in Group Holdings. The remaining 70% of the equity is held by KKR's predecessor owners and employees through KKR Holdings L.P.

KKR'S FINANCIAL HIGHLIGHTS³

Assets under management ("AUM") were $52.2 billion as of December 31, 2009.

Fee related earnings ("FRE") were $87.5 million for the quarter ended December 31, 2009 and pro forma FRE for the year ended December 31, 2009 were $247.4 million.

Economic net income ("ENI") was $515.3 million for the quarter ended December 31, 2009 and pro forma ENI for the year ended December 31, 2009 was $1,953.9 million.

Committed dollars invested amounted to $456.7 million for the quarter ended December 31, 2009 and $2.1 billion for the year ended December 31, 2009.

KKR had uncalled commitments to its investment funds of $14.5 billion as of December 31, 2009, of which $445.0 million had been committed by KKR as a general partner and $827.3 million consisted of commitments by KPE acquired through the Business Combination.

Book value was $4.2 billion or $6.08 per unit as of December 31, 2009.

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¹ KKR refers to the global asset management business of KKR & Co. L.P. and its controlled affiliates resulting from the Business Combination. The financial information for KKR prior to October 1, 2009 is based on a group, for accounting purposes, of certain consolidated and combined entities under the common control of KKR's senior principals, and under the common ownership of KKR's principals and certain other individuals who have been involved in KKR's business.

² The financial information reported for periods prior to October 1, 2009 did not reflect certain adjustments that are applicable for periods after October 1, 2009 as a result of the Business Combination. As a result, the comparisons to all periods prior to October 1, 2009 in this press release are on a pro forma basis giving effect to the Business Combination. For a discussion of these pro forma adjustments, see "KKR's Segment Review" in this release.

³ KKR's financial highlights do not include all adjustments necessary for a presentation of the consolidated and combined financial results of KKR in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

KKR'S SEGMENT REVIEW

Private Markets

AUM in KKR's private markets segment were $38.8 billion as of December 31, 2009, an increase of $1.3 billion or 3.6% compared to pro forma AUM of $37.5 billion as of September 30, 2009. The increase was due primarily to an increase in the fair value of KKR's private equity portfolio offset by distributions during the quarter.

Fee paying assets under management ("FPAUM") in KKR's private markets segment were $36.5 billion as of December 31, 2009, a decrease of $0.7 billion or 1.8% compared to pro forma FPAUM of $37.1 billion as of September 30, 2009. The decrease was due primarily to the reallocation of fee paying uncalled commitments in KKR European Fund III to KKR E2 Investors, which is not fee-paying, as well as distributions during the quarter.

FRE in KKR's private markets segment were $69.2 million for the quarter ended December 31, 2009, an increase of $14.9 million or 27.4% compared to pro forma FRE of $54.3 million for the quarter ended September 30, 2009. The increase was due primarily to a higher level of gross monitoring fees associated with a $46.1 million termination payment on a monitoring agreement with a portfolio company during the fourth quarter, which impacted FRE by $28.6 million net of associated fee credits. A similar termination payment in the third quarter amounted to $26.1 million of gross monitoring fees, which impacted FRE by $9.2 million net of associated fee credits. These types of termination payments may occur in the future; however, they are infrequent in nature. Pro forma FRE were $217.0 million for the year ended December 31, 2009.

ENI in KKR's private markets segment was $145.6 million for the quarter ended December 31, 2009, a decrease of $158.0 million or 52.1% compared to pro forma ENI of $303.6 million for the quarter ended September 30, 2009. ENI for both quarters was due primarily to unrealized gains in KKR's private equity portfolio. While the fair value of KKR's private equity portfolio increased during the fourth quarter, the level of unrealized gains was lower than that experienced during the third quarter of 2009. Pro forma ENI was $661.5 million for the year ended December 31, 2009.

Public Markets

AUM in KKR's public markets segment were $13.4 billion as of December 31, 2009, an increase of $0.4 billion or 3.3% compared to pro forma AUM of $12.9 billion as of September 30, 2009. The increase was due primarily to new capital raised offset by distributions during the quarter.

FPAUM in KKR's public markets segment were $6.3 billion as of December 31, 2009, an increase of $0.5 billion or 7.8% compared to pro forma FPAUM of $5.8 billion as of September 30, 2009. The increase was due primarily to new capital raised offset by distributions during the quarter.

FRE in KKR's public markets segment were $2.4 million for the quarter ended December 31, 2009, a decrease of $4.3 million, or 64.1%, compared to pro forma FRE of $6.7 million for the quarter ended September 30, 2009. This decrease was due primarily to an incentive fee earned during the third quarter of 2009 that was not earned in the fourth quarter. Pro forma FRE were $11.8 million for the year ended December 31, 2009.

ENI in KKR's public markets segment was $1.5 million for the quarter ended December 31, 2009, a decrease of $3.0 million or 67.3% compared to pro forma ENI of $4.4 million for the quarter ended September 30, 2009. This decrease was due primarily to the decrease in FRE explained above. Pro forma ENI was $6.4 million for the year ended December 31, 2009.

Capital Markets and Principal Activities

The capital markets and principal activities segment was formed upon completion of the Business Combination on October 1, 2009 by combining KKR's capital markets business, which was formerly part of the private markets segment, with the assets and liabilities of KPE.

KKR's AUM and FPAUM reported prior to the Business Combination on October 1, 2009 reflected the NAV of KPE and its commitments to KKR's investment funds. Subsequent to the Business Combination, the NAV of KPE and its commitments to KKR's private equity funds are excluded from KKR's calculation of AUM and FPAUM.

FRE in KKR's capital markets and principal activities segment were $15.8 million for the quarter ended December 31, 2009, an increase of $9.9 million, or 165.9%, compared to pro forma FRE of $6.0 million for the quarter ended September 30, 2009. This increase was due primarily to increased activity in KKR's capital markets business in the fourth quarter. Pro forma FRE in KKR's capital markets and principal activities segment were $18.7 million for the year ended December 31, 2009.

ENI in KKR's capital markets and principal activities segment was $368.2 million for the quarter ending December 31, 2009, a decrease of $146.4 million, or 28.5%, compared to pro forma ENI of $514.7 million for the quarter ended September 30, 2009. The decrease was primarily attributable to a lower level of appreciation of KKR's principal investments during the fourth quarter offset by the increase in FRE described above. While the fair value of KKR's principal investments increased during the fourth quarter, the level of unrealized gains was lower than that experienced during the third quarter of 2009. Pro forma ENI was $1,286.0 million for the year ending December 31, 2009.

Business Combination/Pro Forma Adjustments

The FRE and ENI previously reported for periods prior to October 1, 2009 did not reflect certain adjustments that are applicable for periods after October 1, 2009 as a result of the Business Combination, which include items such as:

• the exclusion of approximately 40% of the carry allocated to KKR principals pursuant to its carry pool;
• the exclusion of carry allocated to former KKR principals;
• the exclusion of the capital invested by or on behalf of the general partners of KKR's private equity funds before the completion of the Business Combination and any returns thereon;
• the exclusion of the economic interests associated with the KKR 1996 Fund;
• the elimination of management fees paid by KPE to KKR's management companies;
• the inclusion of the financial results of KPE; and
• certain compensation adjustments including: (a) the exclusion of bonuses earned by certain of KKR's principals which will not be borne by public investors and (b) the inclusion of salaries for KKR's senior principals.

Given the significance of these adjustments, the comparisons to all periods prior to October 1, 2009 in this press release are on a pro forma basis giving effect to the adjustments above. For a further discussion of adjustments related to the Business Combination please refer to KKR Guernsey's consent solicitation statement dated July 24, 2009, which is available at the Investor Relations page at www.kkr.com.

CAPITAL AND LIQUIDITY

As of December 31, 2009, KKR had an available cash balance of $556.7 million and $733.7 million of outstanding debt obligations. As of December 31, 2009, KKR's availability for further borrowings was approximately $1.2 billion. In addition, KKR has a $500 million revolving credit facility for use in KKR's capital markets business that was undrawn as of December 31, 2009.

As of December 31, 2009, KKR had the following uncalled commitments to its private equity and other investment funds (amounts in thousands):

Subsequent to December 31, 2009, KKR received net proceeds of $392.1 million related to both the settlement of its investment in Sun Microsystems and a dividend received on its investment in HCA. Those proceeds, plus other available cash on hand, were used to make repayments on debt obligations of $429.1 million.

DISTRIBUTION POLICY

KKR intends to make quarterly cash distributions in amounts that in the aggregate are expected to constitute substantially all of the cash earnings of its asset management business each year in excess of amounts determined by KKR to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and its investment funds and to comply with applicable law and any of its debt instruments or other agreements. KKR does not intend to distribute gains on principal investments, other than certain tax distributions, if any, to the extent that distributions for the relevant tax year were otherwise insufficient to cover certain tax liabilities of its partners, as calculated by KKR. For the purposes of KKR's distribution policy, KKR's distributions are expected to consist of (i) its fee related earnings after deducting non-cash items and certain other adjustments, (ii) its carry distributions received from its investment funds which have not been allocated as part of its carry pool, and (iii) certain tax distributions, if any.

Because KKR Guernsey makes its investment in KKR through a holding company structure, the distributions received by KKR Guernsey from KKR will be net of amounts required by such holding companies to be paid or withheld under applicable tax laws. KKR Guernsey intends to distribute the net amount received from such holding companies to the holders of KKR Guernsey common units as and when received from KKR. The actual amount and timing of distributions are subject to the discretion of the applicable board of directors of KKR and KKR Guernsey, and there can be no assurance that distributions will be made as intended or at all or that such distributions will be sufficient to pay any particular KKR Guernsey unitholder's actual U.S. or non-U.S. tax liability.

DISTRIBUTION

A distribution of $0.08 per KKR Guernsey unit, subject to applicable withholding taxes, will be payable on or about March 25, 2010 to KKR Guernsey unitholders of record as of the close of business on March 11, 2010. KKR Guernsey, representing a 30% economic interest in KKR, currently has 204,902,226 common units issued and outstanding.

U.S. LISTING

KKR has elected to seek a listing on the New York Stock Exchange. The election, which was made pursuant to the terms of the investment agreement in effect between KKR and KKR Guernsey, obligates each party to use reasonable efforts to implement the listing, including the preparation and filing by KKR of a registration statement with the U.S. Securities and Exchange Commission as promptly as practicable.

In light of the election to seek a listing on the New York Stock Exchange, KKR Guernsey does not presently plan to hold an annual unitholder meeting to present a report on the investment activities of KKR Guernsey. Unitholders are instead urged to participate in the conference call scheduled to discuss KKR's results noted below.

FINANCIAL REPORT

The availability of KKR Guernsey's financial report, which will include a discussion of KKR, the audited financial statements of KKR Guernsey and the audited consolidated and combined financial statements of Group Holdings, will be announced by press release and be made available at the Investor Relations page on KKR's website (www.kkr.com) as soon as practicable. KKR Guernsey encourages investors to carefully read the financial report once available.

CONFERENCE CALL

A conference call to discuss the firm's results, outlook and related matters will be held tomorrow, February 25, 2010 at 10:00 AM EST (New York City) / 3:00 PM GMT (Guernsey) / 4:00 PM CET (Amsterdam). The call will be open to the public. Members of the public who would like to listen to the conference call may do so by dialing (888) 213-3754 (U.S.) or +1 (913) 312-1386 (non-U.S.); a pass code is not required. The conference call will also be accessible as an audio webcast through the Investor Relations section of KKR's website at http://www.kkr.com/investor_relations/events.cfm. For those unable to listen to the live broadcast, a replay will be available on KKR's website or by dialing (888) 203-1112 (U.S.) and +1 (719) 457-0820 (non-U.S.) / pass code 3543030, beginning approximately two hours after the broadcast.

ABOUT KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global alternative asset manager with $52.2 billion in assets under management, over 600 people, and 13 offices around the world as of December 31, 2009. KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platforms. KKR is publicly traded through KKR & Co. (Guernsey) L.P. (Euronext Amsterdam: KKR). For additional information, please visit KKR's website at www.kkr.com.

NO OFFERING STATEMENT

This release does not constitute an offer of securities for sale in the United States or elsewhere. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from KKR or KKR Guernsey and that will contain detailed information about them and management, as well as financial statements.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements. 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. The forward-looking statements are based on KKR's and KKR Guernsey's beliefs, assumptions and expectations of their future performance, taking into account all information currently available to them. 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 KKR Guernsey or are within their control. If a change occurs, KKR's and KKR Guernsey's business, financial condition, liquidity and results of operations, including net asset value, assets under management, fee paying assets under management, fee-related earnings, economic net income, committed dollars invested and uncalled commitments, 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 possibility that the listing of the interests in the combined business on the New York Stock Exchange may or may not occur; the risk that the anticipated benefits of the combined business may not be achieved; the general volatility of the capital markets; changes in KKR's or KKR Guernsey's business strategy; availability, terms and deployment of capital; availability of qualified personnel and expense 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. Neither KKR nor KKR Guernsey undertakes 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 and KKR Guernsey's business strategy is focused on the long-term and financial results are subject to significant volatility. Additional information about factors affecting KKR and KKR Guernsey are available in KKR Guernsey's consent solicitation statement dated July 24, 2009, which is available at the Investor Relations section at www.kkr.com.