Media Center

November 7, 2011

KKR Selected as Strategic Partner by Teacher Retirement System of Texas

NEW YORK--(BUSINESS WIRE)-- Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR"), today announced that the Teacher Retirement System of Texas ("TRS") has selected KKR to be a strategic partner with the responsibility of managing $3 billion of TRS' capital across a variety of private markets' asset classes. The implementation of the strategic partnership between TRS and KKR is subject to the negotiation of definitive documentation and receipt of any requisite approvals.

The KKR strategic partnership with Texas Teachers includes a flexible, discretionary arrangement encompassing $3 billion of long term capital committed in 2011 ($1 billion to date) and beyond. Importantly, it has meaningful recycling provisions for those commitments and provides wide latitude for the opportunistic allocation of capital in different market environments. It takes advantage of the long-term nature of the TRS portfolio to capitalize on market opportunities globally and is designed to deliver an attractive risk reward profile to TRS in a widely diversified, global portfolio. It is a customized incentive-based arrangement which seeks to allow the portfolio to capitalize on the best ideas of KKR. The partnership also emphasizes significant idea sharing between the staff at Texas Teachers and the KKR team around the world.

Commenting on the partnership, Henry Kravis and George Roberts, Co-founders and Co-CEOs of KKR, said: "We appreciate the innovative and market-leading approach of TRS, and we are very excited about this strategic partnership. It reflects the deepening of a longstanding relationship between TRS and KKR, and we look forward to working with the TRS team in the years ahead."

"Today's decision is the culmination of a multiple year effort to create a private markets partnership platform that will support the needs of TRS and its beneficiaries. Over the last three years, we have implemented similar partnerships in public markets, and they have been very successful," said Steve LeBlanc, Senior Managing Director, External Private Markets at TRS. "These strategic partnerships enable us to work closely with a small group of top tier managers and they allow us to take advantage of the best global investment opportunities. We selected KKR because the firm has a long history of successful investing and it has demonstrated the type of innovative thinking that will ensure we have access to the right opportunities at the right time," LeBlanc continued.

About TRS

TRS delivers retirement and related benefits authorized by the Texas Legislature, and manages a more than $107 billion trust fund established to finance member benefits. More than 1.3 million public education and higher education employees and retirees participate in the system


Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $58.7 billion in assets under management as of September 30, 2011. With offices around the world, 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 platform. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR's website at

Media Contact:
Kohlberg Kravis Roberts & Co. L.P.
Kristi Huller, 212-230-9722

Source: Kohlberg Kravis Roberts & Co. L.P.

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