KKR Forms New Asset Management Division

Business Wire, Dec 16, 2008

William C. Sonneborn appointed Head

NEW YORK -- Kohlberg Kravis Roberts & Co. ("KKR") today announced the creation of a new Asset Management division, KKR Asset Management, and named William C. Sonneborn as its head. KKR Fixed Income ("KFI") will become part of this new Asset Management division. Sonneborn will succeed Saturnino S. Fanlo, CEO of KFI, KKR Financial Holdings LLC ("KFN") and KKR Strategic Capital Management, L.L.C. ("SCF") and David A. Netjes, COO KFI, KFN and SCF, who are both leaving the firm.

"Bill's success running a formidable, multi-product asset management business is well documented and we welcome the leadership he'll be able to provide during this period of significant change and in the years to come," Henry Kravis and George Roberts, Co-founders of KKR, said.

Prior to joining KKR, Mr. Sonneborn was President and Chief Operating Officer of The TCW Group, Inc., a leading investment management firm with over $130 billion in assets.

"The dislocation in the capital markets is challenging for all asset managers. At the same time, we believe it may result in good investment opportunities. We will be taking the right steps to weather today's turbulence and capture future opportunities," Bill Sonneborn, Member of KKR, said.

Sonneborn will also become CEO of KKR Financial Holdings LLC, a NYSE-listed company and one of the entities managed by KKR Asset Management.

KKR Asset Management is the platform for KKR's fixed income business as well as its non private-equity-related businesses such as mezzanine financing.

About KKR

Established in 1976, KKR is a leading global alternative asset manager. The core of the Firm's franchise is sponsoring and managing funds that make private equity investments in North America, Europe, and Asia. Throughout its history, KKR has brought a long-term investment approach to portfolio companies, focusing on working in partnership with management teams and investing for future competitiveness and growth. Additional funds that KKR sponsors include KKR Private Equity Investors, L.P. (NYSE Euronext Amsterdam: KPE), a permanent capital fund that invests in KKR-identified investments; and two credit strategy funds, KKR Financial Holdings LLC (NYSE: KFN) and the KKR Strategic Capital Funds, which make investments in debt transactions. KKR has offices in New York, Menlo Park, San Francisco, Houston, Washington, DC, London, Paris, Hong Kong, Beijing, Tokyo and Sydney. More information about KKR is available at: www.kkr.com.