June 17, 2008 – Consistent with its ongoing efforts to enhance coordination and improve overall firm management, KKR has decided to make the following changes to its corporate and internal management structure.

First, due to our significant growth over the last few years, KKR is creating a new management role of Chief Administrative Officer.  Todd Fisher, a Member of the firm, will fill this role, which is designed to integrate and coordinate the firm’s infrastructure, processes, communication and global interaction.  Todd’s primary focus will be on the firm’s control, support and risk management infrastructure, overall operating discipline and coordination of the various businesses, offices and functions. Todd will continue to be based in London and will retain his position on the Firm’s Investment Committee.

Second, the KFL credit business is now fully integrated into KKR, shifting from a 65% owned entity to a wholly owned entity.  This business will also be re-branded as “KKR Fixed Income”.  As part of this integration, Nino Fanlo and Dave Netjes, founding partners of KFL, will become Members of KKR and Mark Lerdal and Ryan Marshall will become Managing Directors, with the rest of the team similarly integrated by July 31.  The goal of these changes is to simplify KKR’s corporate structure and enhance the firm’s ability to expand KKR Fixed Income.  For more information, you can read the investor communication at www.kkrkfn.com

Finally, Perry Golkin, a Member of our firm who has dedicated 22 years to KKR leading, among other things, our capital raising efforts, has decided to shift his focus to maintaining and building certain key investor relationships.  Scott Nuttall will be overseeing the combined capital raising, distribution and broker-dealer efforts going forward, including hiring a new Head of Distribution who will work alongside Craig Farr who will become the Head of Capital Markets.

All of these changes are both positive and important steps in the continuing evolution of KKR as they will help to strengthen our overall corporate and management structure.