CPPIB Credit Investments Inc. Joins KKR and Stone Point

CPPIB Credit Investments Inc. Joins KKR and Stone Point Capital as a
Partner in Capital Markets Platform 
Seeks To Invest Up To $2 Billion Initially in Middle Market and
Non-Traditional Corporate Credit Opportunities Sourced Through
Platform 
NEW YORK, NEW YORK and TORONTO, ONTARIO -- (Marketwire) -- 01/17/13
-- Stone Point Capital ("Stone Point") and KKR & Co. L.P. (NYSE:KKR)
today announced the addition of CPPIB Credit Investments Inc. ("CPPIB
Credit"), a wholly-owned subsidiary of Canada Pension Plan Investment
Board ("CPPIB"), as a joint venture partner and investor in MerchCap
Solutions LLC ("MCS" or the "Company"), formerly known as KKR-SPC
Merchant Advisors LLC. Formed in August of 2012, the Company provides
principal and agency-based capital markets services to sponsor-backed
and corporate mid-market companies as well as principal investments
to support its client needs.  
In addition to the $300 million of capital previously committed by
Stone Point and KKR, CPPIB Credit will commit an additional $50
million of equity to MCS to support its business. CPPIB has initially
earmarked up to $2 billion of capital for direct investment at its
discretion in middle market debt transactions and other
non-traditional corporate lending opportunities arranged for clients
of MCS. Mark Jenkins, Head of Private Debt for CPPIB, will join the
board of directors of the Company as well as its Strategic
Development and Capital Allocation Committees. The day-to-day
origination, execution and underwriting activities of the Company
will continue to be carried out by KKR's capital markets employees. 
"This investment is an excellent opportunity to expand CPPIB's
Private Debt portfolio into the middle market, an attractive and
underserved market segment," said Mark Jenkins. "We also believe
there are additional underserved areas that we can target by
combining our focus with MCS's structuring and distribution
expertise. This platform is well suited to our comparative advantages
and internal underwriting capabilities, and we have initially
earmarked up to $2 billion of additional capital for direct
investments in mid-market companies through MCS. We look forward to
partnering alongside KKR and Stone Point who are longstanding,
well-aligned partners of ours."  
"We are excited to expand our MCS partnership with the addition of
CPPIB, an exceptional pension fund with a long investment horizon and
deep investment and market expertise that will have clear benefits
for MCS's targeted client base. With CPPIB, our company will be even
better suited to helping clients find attractive capital markets
solutions," said Chuck Davis, Co-Founder of Stone Point.  
"CPPIB has built a unique and highly differentiated private debt
capability. We look forward to combining forces with CPPIB to provide
tailored solutions to our clients, who will benefit from CPPIB's
ability to scale and hold private corporate credit assets and its
long-term orientation as a lender and investor," added Craig Farr,
Global Head of Capital Markets at KKR.  
About CPPIB Credit Investments Inc. 
CPPIB Credit Investments Inc. is a multi-faceted global credit
investment program wholly owned by the CPP Investment Board. Since
its inception, the group has invested approximately $10 billion of
capital and currently holds approximately $5 billion of credit
investments. With investments in the Americas, Europe and Asia, the
team is focused on providing debt financing across the entire capital
structure including term loans, high-yield bonds, mezzanine lending
and other solutions for corporations. 
Canada Pension Plan Investment Board (CPPIB) is a professional
investment management organization that invests the funds not needed
by the Canada Pension Plan (CPP) to pay current benefits on behalf of
18 million Canadian contributors and beneficiaries. In order to build
a diversified portfolio of CPP assets, CPPIB invests in public
equities, private equities, real estate, infrastructure and fixed
income instruments. Headquartered in Toronto, with offices in London
and Hong Kong, CPPIB is governed and managed independently of the
Canada Pension Plan and at arm's length from governments. At
September 30, 2012, the CPP Fund totaled C$170.1 billion. For more
information, please visit www.cppib.ca. 
About KKR 
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $66.3 billion in assets under
management as of September 30, 2012. 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, capital markets and global
stakeholder relations platform. KKR & Co. L.P. is publicly traded on
the New York Stock Exchange (NYSE:KKR), and references to KKR in this
release include its subsidiaries, their managed investment funds and
accounts, and/or their affiliated investment vehicles, as
appropriate. For additional information, please visit KKR's website
at www.kkr.com.  
About Stone Point 
Stone Point Capital LLC is a global private equity firm based in
Greenwich, Connecticut, that has a 25-year record of making
successful investments in the financial services industry. Stone
Point Capital serves as the manager of the Trident Funds, which have
raised more than $9 billion in committed capital to make investments
in lending, banking, insurance, asset management and other financial
services companies. For further information about Stone Point
Capital, see www.stonepoint.com.  
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. Without limiting the foregoing, statements
regarding the Company or the intentions or commitments of Stone
Point, CPPIB Credit and KKR may constitute forward-looking
statements. Such statements are subject to the risk that the terms of
their obligations may be modified, commitments may not be funded at
all or the benefits and synergies from the Company are not realized.
The forward-looking statements are based on the parties' beliefs,
assumptions and expectations, 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 the parties or are within
their control. No party 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. Additional information about factors affecting KKR
is available in KKR & Co. L.P.'s Annual Report on Form 10-K for the
fiscal year ended December 31, 2011, filed with the SEC on February
27, 2012, and other filings with the SEC, which are available at
www.sec.gov. 
Contacts:
CPPIB
Linda Sims
(416) 868-8695
lsims@cppib.ca
www.cppib.ca 
KKR
Kristi Huller
(212) 230-9722
kristi.huller@kkr.com
www.kkr.com
Contacts:
Stone Point Capital
Emanuel Citron
(203) 862-2974
ecitron@stonepoint.com
www.stonepoint.com
 
 
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