We invest in infrastructure. KKR believes that the global infrastructure market provides an opportunity for value creation through our unique combination of operational improvement, capital investment, and public affairs expertise.

The scale of global infrastructure investment demand is enormous. There is a growing need to replace or expand infrastructure, including for roads, railways, ports, airports, power and energy assets, communications networks, and more. According to the Organization for Economic Co-operation and Development, an international organization helping governments engage the challenges of a globalized economy, the investment need is as high as $3 trillion annually. Traditional public funding sources have been unable to keep pace with this global investment need. Moreover, current economic conditions are likely to cause funding challenges to increase for the foreseeable future. We believe that the foregoing factors, taken together, create tremendous opportunity for private capital investment in infrastructure.

KKR has made a number of notable infrastructure investments historically, typically in first mover and highly complex situations. In May 2008, we announced plans to invest in infrastructure assets on a global basis. This investing effort, led by Marc Lipschultz, is a logical extension of our investing experience, and reflects our desire to pursue infrastructure opportunities more systematically. Joining Mr. Lipschultz in senior leadership roles are Reinhard Gorenflos, Jesús Olmos Clavijo, John Bookout, Simon Hipperson, and Raj Agrawal.

Approach and Strategy

Infrastructure plays a key role in the growth of both developed and developing economies, and we believe that the global infrastructure market provides an opportunity for our unique combination of private investment, operational improvement, and public affairs skills. We are committed to investing in infrastructure assets on a global basis. Further, this growth initiative is an extension of our private equity business, building on the significant expertise we have established by managing investments in large, complex, and regulated businesses and our record of driving operational improvements in a wide range of industries.

KKR's infrastructure investment strategy is founded upon five pillars that we believe provide us with a competitive advantage:

This strategy will enable KKR to couple our proven business model, global resources and capabilities with a dedicated infrastructure investing effort. In so doing, we will seek to further extend KKR's exceptional long-term investment performance to the infrastructure asset class and continue to set new standards of innovation and excellence for our investors.