KKR to Acquire Avoca Capital

  KKR to Acquire Avoca Capital

                       Expands European Credit Business

Business Wire

NEW YORK, LONDON & DUBLIN -- October 18, 2013

KKR & Co. L.P. (NYSE:KKR), a leading global investment firm, today announced a
transaction to acquire Avoca Capital, a leading European credit investment
manager with approximately $8 billion in assets under management. Financial
terms of the transaction were not disclosed.

Founded in 2002, Avoca has a long track record as one of the leading
investment firms in the European leveraged credit markets. Avoca invests
across five strategies – European loans and bonds, credit opportunities,
long/short credit, convertible bonds and structured and illiquid credit. The
Avoca platform has experienced strong inflows in recent years as institutional
investors seek access to credit asset classes with a focus on attractive
returns and downside protection.

Henry Kravis and George Roberts, co-founders and co-CEOs of KKR, stated: “We
believe the European credit space offers significant opportunity. To date we
have built our European credit business focused on originated credit
opportunities such as private credit and special situations, providing $2
billion of capital in just the last two years to European companies. Avoca has
a very strong track record, an entrepreneurial management team and excellent
capabilities that are complementary to ours in European senior and liquid
credit. This acquisition will enable us to expand our credit platform to offer
a full spectrum of credit opportunities globally for our clients.”

Alan Burke and Dónal Daly, co-founders of Avoca, stated: “European credit
markets are likely to grow significantly over the decade ahead as banks
deleverage and take time to rebuild their capital bases. This transaction
creates a broad based credit business that will be at the forefront of the
developments in European credit markets in the years to come. We are very
excited by the enhanced opportunities the transaction will bring for the Avoca
team and its clients.”

As European banks have shifted assets to comply with Basel III regulations on
capital and leverage, alternative capital providers that are able to make
longer term investments are providing financing to European companies while
providing institutional investors with the returns they need to pay their
pension and insurance obligations.

Upon closing the transaction, KKR will have approximately $28 billion in
credit assets in its multi-strategy credit platform operating globally in San
Francisco, New York, Dublin, London and Sydney. The combined European credit
business will have approximately 80 people on the ground and €8bn ($11bn) of
European credit assets ranging across the entire capital structure in credit
from senior loans to long short credit, structured credit, mezzanine, special
situations and convertible bonds.

Alan Burke, Avoca co-founder and CEO, will lead KKR’s European credit platform
and together with Nat Zilkha will help drive the future growth of KKR’s global
credit business. Both Alan and Nat will report to Craig Farr, who has
responsibility for KKR’s global credit and capital markets businesses. Dónal
Daly, co-founder and Chairman of Avoca, will become a Senior Advisor to KKR at
transaction close.

All Avoca employees in Dublin and London will join KKR on transaction close.
Investment teams and processes for both KKR and Avoca, including the portfolio
management of the respective firms’ strategies, will remain unchanged by the
transaction. Avoca’s Dublin office will remain a core part of the combined
franchise. The transaction, which is subject to customary regulatory
approvals, is expected to close in the first quarter of 2014.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with $83.5 billion in assets under management as of
June 30, 2013. 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 fund
investors through its client relationships and capital markets platform. KKR &
Co L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment vehicles, as
appropriate.

About Avoca Capital

Avoca Capital is a leading European credit investment manager with €6bn/$8bn
of assets under management. The partner owned firm was founded in 2002, is
based in Dublin and London and employs 67 professionals. Avoca has a long
track record of being one of the top performing investment firms in the
European sub-investment grade credit markets. Avoca’s clients include global
pension funds, sovereign wealth funds, insurance companies, asset managers and
private banks. Avoca Capital Holdings is regulated by the Central Bank of
Ireland and subject to limited regulation by the Financial Conduct Authority.

Contact:

KKR
KKR Investors
Craig Larson,+1-877-610-4910 (US),+1-212-230-9410 (international)
Investor-Relations@kkr.com
or
Media Inquiries
KKR New York
Kristi Huller, +1-212-230-9722
Kristi.Huller@kkr.com
or
London - RLM Finsbury
Edward Simpkins, +44 20-7251-3801
edward.simpkins@rlmfinsbury.com
or
Michael Turner, +44 20-7251-3801
michael.turner@rlmfinsbury.com
Avoca
Avoca Investors
Kevin McMahon, +353 1-479-3116
kevinmcmahon@avocacapital.com
or
Media Inquiries
Temple Bar Advisory
Alex Child-Villiers, +44 20-7002-1080,
alexcv@templebaradvisory.com
or
William Barker, +44 20-7002-1080,
williamb@templebaradvisory.com