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Datum nieuwsfeit: 27-07-2008
( BW)(KKR-PRIVATE-EQUITY)(KPE.AS) KKR Private Equity Investors Reports
Results for Quarter Ended June 30, 2008
Business Editors
GUERNSEY, Channel Islands--(BUSINESS WIRE)--July 27, 2008--
NAV per Unit of $22.25 as of June 30, 2008
KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE), a
Guernsey limited partnership that invests its assets in private equity
and opportunistic investments identified by Kohlberg Kravis Roberts &
Co. ("KKR"), today reported its financial results for the quarter and
six months ended June 30, 2008. As of June 30, 2008, KPE's net asset
value ("NAV") was $4,558.2 million, or $22.25 per unit.
Results of Operations
Operating results of KPE for the quarter ended June 30, 2008 are
highlighted as follows:
-- Net realized loss on investments and foreign currency was
$42.5 million. The net realized loss was primarily comprised
of $23.4 million from the secondary sales of investments in
limited partner interests of the KKR 2006 Fund L.P. ("KKR 2006
Fund") and the KKR Millennium Fund L.P. ("KKR Millennium
Fund") and $19.9 million from the sale of opportunistic
investments in public equities and derivative instruments,
offset by a realized gain of $5.7 million from the partial
sale of security holdings in Rockwood Holdings, Inc. and the
final disposition of KSL Holdings - La Costa by KKR's private
equity funds;
-- Net unrealized depreciation on investments and foreign
currency transactions was $98.7 million. The changes in the
unrealized fair value of investments from March 31, 2008 to
June 30, 2008 were:
-- A net decrease of $138.2 million in the value of the
investment in ProSiebenSat.1 Media AG ("ProSieben"), which
was marked on a Euro basis from 0.7 times original cost as
of March 31, 2008 to 0.2 times as of June 30, 2008, and
the related foreign currency exchange contract. Including
foreign currency translation, the ProSieben investment was
marked on a U.S. dollar basis from 0.9 times to 0.2 times
as of June 30, 2008;
-- A net decrease of $48.7 million in the value of the
investment in PagesJaunes Groupe S.A. ("PagesJaunes"),
based on a market quotation on a U.S. dollar basis, and
the related foreign currency exchange contract;
-- A decrease of $48.9 million in the value of the
convertible senior note investment in Sun Microsystems,
Inc. ("Sun");
-- A decrease of $34.2 million in the value of Aero Technical
Support & Services S.a r.l. ("ACTS"), which was marked on
both a Canadian dollar and U.S. dollar basis from 1.0
times original cost to 0.7 times as of June 30, 2008;
-- A decrease of $25.3 million in the value of Legrand
Holdings S.A. ("Legrand"), based on a market quotation on
a U.S. dollar basis;
-- A decrease of $14.8 million in the value of Capmark
Financial Group Inc. ("Capmark"), which was marked from
1.2 times KPE's cost as of March 31, 2008 to 1.1 times as
of June 30, 2008;
-- An increase of $132.8 million in the value of Energy
Future Holdings Corp. ("EFH"), which was marked from 1.0
times original cost to 1.4 times as of June 30, 2008;
-- An increase of $31.0 million in the value of the
convertible preferred stock investment in Orient
Corporation ("Orico") and the related foreign currency
exchange contract; and
-- An increase of $21.2 million in the value of The Nielsen
Company, B.V. ("Nielsen"), which was marked from 1.1 times
original cost as of March 31, 2008 to 1.2 times as of June
30, 2008.
-- Net investment loss was $18.5 million, which principally
represented interest expense and management fees, offset by
interest and dividend income; and
-- The net decrease in net assets resulting from operations was
$159.7 million and KPE's total return was (3.4) percent during
the quarter. KPE's total return of (3.4) percent compared to a
(3.2) percent return in the S&P 500 Index for the quarter
ended June 30, 2008.
Operating results of KPE for the six months ended June 30, 2008
are highlighted as follows:
-- Net realized loss on investments and foreign currency was
$38.5 million. The net realized loss was primarily comprised
of $26.3 million from the sale of opportunistic investments in
public equities and derivative instruments and $23.5 million
from the secondary sales of investments in limited partner
interests of the KKR 2006 Fund and the KKR Millennium Fund,
offset by realized gains of $16.0 million from the sale of
Demag Holdings, S.a r.l., the partial sale of security
holdings in Rockwood Holdings, Inc. and the final disposition
of KSL Holdings - La Costa by KKR's private equity funds;
-- Net unrealized depreciation on investments and foreign
currency transactions was $350.5 million. The changes in the
unrealized fair value of investments from December 31, 2007 to
June 30, 2008 were:
-- A decrease of $175.6 million in the value of the
investment in PagesJaunes, based on a market quotation on
a U.S. dollar basis, and the related foreign currency
exchange contract;
-- A decrease of $133.6 million in the value of the
investment in ProSieben, which was marked on a Euro basis
from 0.7 times original cost as of December 31, 2007 to
0.2 times as of June 30, 2008, and the related foreign
currency exchange contract. Including foreign currency
translation, the ProSieben investment was marked on a U.S.
dollar basis from 0.8 times to 0.2 times as of June 30,
2008;
-- A decrease of $94.0 million in the value of the
convertible senior note investment in Sun;
-- A decrease of $60.6 million in the value of Legrand, based
on a market quotation on a U.S. dollar basis;
-- A decrease of $37.3 million in the value of ACTS, which
was marked on both a Canadian dollar and U.S. dollar basis
from 1.0 times original cost to 0.7 times as of June 30,
2008;
-- A decrease of $29.9 million in the value of Capmark, which
was marked from 1.3 times KPE's cost as of December 31,
2007 to 1.1 times as of June 30, 2008;
-- An increase of $132.8 million in the value of EFH, which
was marked from 1.0 times original cost to 1.4 times as of
June 30, 2008; and
-- An increase of $42.7 million in the value of Nielsen,
which was marked from 1.0 times original cost to 1.2 times
as of June 30, 2008.
-- Net investment loss was $39.5 million, which principally
represented interest expense and management fees, offset by
interest and dividend income; and
-- The net decrease in net assets resulting from operations was
$428.6 million and KPE's total return was (8.6) percent during
the six months ended June 30, 2008. KPE's total return of
(8.6) percent compared to a (12.8) percent return in the S&P
500 Index for the six months ended June 30, 2008.
Investments
KPE invests its capital as the sole limited partner of KKR PEI
Investments, L.P. (the "Investment Partnership"). As of June 30, 2008,
the Investment Partnership's portfolio of private equity investments,
net of related financing, and opportunistic investments with a fair
value of $5,019.4 million, was comprised of the following:
-- Investments of $1,666.9 million through KKR's private equity
funds:
-- $1,159.0 million in KKR 2006 Fund L.P.,
-- $186.2 million in KKR European Fund, Limited Partnership,
-- $182.9 million in KKR Millennium Fund L.P.,
-- $86.4 million in KKR European Fund II, Limited
Partnership,
-- $43.8 million in KKR Asian Fund, L.P., and
-- $8.6 million in KKR European Fund III, Limited
Partnership.
-- Co-investments of $2,506.4 million in the following portfolio
companies of KKR's private equity funds:
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-- Alliance Boots plc. -- KION Group GmbH
-- Biomet, Inc. -- The Nielsen Company B.V.
-- Capmark Financial Group Inc. -- NXP B.V.
-- Dollar General Corporation -- PagesJaunes Groupe S.A.
-- Energy Future Holdings Corp. -- ProSiebenSat. 1 Media AG
-- First Data Corporation -- U.S. Foodservice, Inc.
-- HCA Inc.
*T
-- Negotiated equity investments of $502.1 million, net of
related financing:
-- $224.0 million (net of long-term financing of $350.0
million) of convertible senior notes of Sun, a leading
technology company;
-- $196.8 million of convertible preferred stock of Orico,
one of the largest consumer credit companies in Japan; and
-- $81.3 million invested in ACTS, a Canadian aircraft
maintenance, repair and overhaul company.
-- Opportunistic investments of $344.0 million:
-- Non-private equity fund investment of $173.9 million in
SCF;
-- $116.5 million of a fixed income investment; and
-- $53.6 million of publicly traded securities and related
derivative instruments.
Subsequent Investment Activity
Subsequent to June 30, 2008 and through July 25, 2008, the
Investment Partnership had investment activity as described below.
-- Dispositions of opportunistic investments valued at $9.7
million as of June 30, 2008 for cash proceeds of $9.6 million,
which included sales of publicly traded securities and related
derivative instruments and proceeds from securities sold
short.
-- Net return of capital of $4.3 million related to an investment
in the KKR 2006 Fund.
-- Purchases of opportunistic investments of $9.5 million, which
included acquisitions of public equities and related
derivative instruments and settlements of securities sold
short.
As of July 25, 2008, the Investment Partnership's remaining
capital commitments related to limited partner interests in KKR's
private equity funds were as follows, with amounts in thousands, after
taking into account the subsequent investment activity described
above:
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KKR 2006 Fund L.P. $ 454,393
KKR European Fund III, Limited Partnership 291,192
KKR Asian Fund L.P. 244,812
KKR Millennium Fund L.P. 4,440
KKR European Fund II, Limited Partnership 1,010
-----------
$ 995,847
===========
*T
Liquidity and Capital Resources
As of July 25, 2008, the Investment Partnership had a pro forma
cash balance of $122.2 million, which represented the cash balance as
of June 30, 2008 and the net proceeds of cash from investment
activity, described above, and the repayment of borrowings outstanding
under the revolving credit facility, described below, that occurred
from July 1, 2008 to July 25, 2008.
As of July 25, 2008, the Investment Partnership had drawn, on a
pro forma basis, $508.0 million of its $1.0 billion five-year senior
secured credit facility established on June 11, 2007, which
represented borrowings outstanding as of June 30, 2008 less the
repayment of borrowings with a fair value of $90.1 million that
occurred from July 1, 2008 to July 25, 2008. The amount of cash used
to pay such borrowings, which were denominated in British pounds
sterling, was $89.8 million. As of July 25, 2008, the Investment
Partnership's pro forma availability for further borrowings under the
credit facility was $492.0 million.
Business Combination Transaction
As announced today in a separate press release, KPE and KKR & Co.
L.P. have entered into an agreement providing for the acquisition of
all of the assets and assumption of all of the liabilities of KPE by
KKR & Co. L.P. Please refer to such press release for further
information.
Financial Report
KPE has posted its interim financial report, which includes its
unaudited financial statements and the unaudited consolidated
financial statements of the Investment Partnership, to its website
(www.kkrprivateequityinvestors.com). KPE encourages investors to
carefully read these documents accompanying this news release.
Information for Investors - Teleconference and Webcast
KPE will discuss its financial results and the previously
announced business combination, described above, on a teleconference
to be broadcast live on the Internet on Monday, July 28, 2008 at 2:00
p.m. CET (Amsterdam) / 1:00 p.m. GMT (Guernsey/London) / 8:00 a.m. EDT
(New York City). A webcast (listen only) of the teleconference can be
accessed via the Investor Relations section of KPE's website at
www.kkrprivateequityinvestors.com, as well as on KKR's website at
www.kkr.com.
About KPE
KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE) is a
Guernsey limited partnership that seeks to create long-term value by
participating in private equity and opportunistic investments
selected, evaluated, structured, monitored and exited by investment
professionals of Kohlberg Kravis Roberts & Co. ("KKR"). As of June 30,
2008, over 90% of KPE's $5.4 billion portfolio was comprised of
limited partner interests in six KKR private equity funds,
co-investments in 13 companies alongside the private equity funds and
negotiated equity investments. The remainder of KPE's portfolio as of
June 30, 2008 was invested in opportunistic and temporary investments.
KPE is governed by its general partner's board of directors, which has
a majority of independent directors, and makes its investments as the
sole limited partner of another Guernsey limited partnership, KKR PEI
Investments, L.P.
The common units and related restricted depositary units of KPE
are subject to a number of ownership and transfer restrictions.
Information concerning these ownership and transfer restrictions is
included in the Investor Relations section of KPE's website at
www.kkrprivateequityinvestors.com.
No Offering Statement
This release does not constitute an offer of securities for sale
in the United States. Securities may not be offered or sold in the
United States absent registration or an exemption from registration.
Any public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from KPE and
that will contain detailed information about KPE and management, as
well as financial statements.
Forward-Looking Statements
This release may contain certain forward-looking statements with
respect to the financial condition, results of operations, liquidity,
investments, business, net asset value and prospects of KPE. By their
nature, forward-looking statements involve risk and uncertainty,
because they relate to events and depend on circumstances that will
occur in the future, and there are many factors that could cause
actual results and developments to differ materially from those
expressed or implied by these forward-looking statements. KPE does not
undertake to update any of these forward-looking statements.
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KKR PRIVATE EQUITY INVESTORS, L.P.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
(Amounts in thousands, except unit and per unit amounts)
----------------------------------------------------------------------
June 30, December 31,
2008 2007
------------ ------------
ASSETS:
Investments in limited partner interests of
KKR PEI Investments, L.P., at fair value
(cost of $4,826,568) $ 4,553,622 $ 4,984,533
Cash and cash equivalents 5,795 452
Prepaid expenses 376 141
------------ ------------
Total assets 4,559,793 4,985,126
------------ ------------
LIABILITIES:
Accrued liabilities 1,353 1,823
Due to affiliate 264 930
------------ ------------
Total liabilities 1,617 2,753
------------ ------------
NET ASSETS $ 4,558,176 $ 4,982,373
============ ============
NET ASSETS CONSIST OF:
Partners' capital contributions, net
(common units outstanding of 204,902,226
and 204,550,001, respectively) $ 4,834,517 $ 4,830,110
Distributable earnings (loss) (276,341) 152,263
------------ ------------
$ 4,558,176 $ 4,982,373
============ ============
Net asset value per common unit $ 22.25 $ 24.36
============ ============
Market price per common unit $ 12.75 $ 18.16
============ ============
*T
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KKR PRIVATE EQUITY INVESTORS, L.P.
STATEMENTS OF OPERATIONS (UNAUDITED)
(AMOUNTS IN THOUSANDS)
----------------------------------------------------------------------
Quarter Ended Six Months Ended
------------------- ------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
---------- -------- --------- --------
NET INVESTMENT INCOME (LOSS)
ALLOCATED FROM
KKR PEI INVESTMENTS, L.P.:
Investment income $ 15,480 $ 44,130 30,721 $ 83,182
Expenses 32,669 20,109 67,584 32,738
---------- -------- --------- --------
(17,189) 24,021 (36,863) 50,444
INVESTMENT INCOME--Interest
income 34 19 60 28
EXPENSES--General and
administrative expenses 1,297 1,496 2,743 2,862
---------- -------- --------- --------
NET INVESTMENT INCOME (LOSS) (18,452) 22,544 (39,546) 47,610
---------- -------- --------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY ALLOCATED
FROM KKR PEI INVESTMENTS, L.P:
Net realized gain (loss) (42,511) 5,094 (38,521) 16,604
Net change in unrealized
appreciation (depreciation) (98,718) 122,327 (350,537) 242,684
---------- -------- --------- --------
Net gain (loss) on
investments and foreign
currency transactions (141,229) 127,421 (389,058) 259,288
---------- -------- --------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(159,681) $149,965 (428,604) $306,898
========== ======== ========= ========
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KKR PRIVATE EQUITY INVESTORS, L.P.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
NET ASSETS--DECEMBER 31, 2006 $5,035,599
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS FOR THE YEAR
ENDED DECEMBER 31, 2007:
Net investment income 19,029
Net loss on investments and foreign currency
transactions. (23,163)
-----------
Net decrease in net assets resulting from operations (4,134)
-----------
Distribution to unitholders (49,092)
-----------
NET ASSETS--DECEMBER 31, 2007 $4,982,373
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 2008:
Net investment loss (39,546)
Net loss on investments and foreign currency
transactions. (389,058)
-----------
Net decrease in net assets resulting from operations (428,604)
-----------
Partners' capital contributions (issued 352,225 common
units) 4,407
-----------
NET ASSETS--JUNE 30, 2008 $4,558,176
===========
*T
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KKR PRIVATE EQUITY INVESTORS, L.P.
STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2008 June 30, 2007
---------------- ----------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net increase (decrease) in net
assets resulting from operations $ (428,604) $ 306,898
Adjustments to reconcile net
increase (decrease) in net assets
resulting from operations to cash
and cash equivalents provided by
(used in) operating activities:
Net investment loss (income)
allocated from KKR PEI
Investments, L.P. 36,863 (50,444)
Net loss (gain) on investments
and foreign currency
transactions allocated from KKR
PEI Investments, L.P. 389,058 (259,288)
Share-based compensation
expense. 24 8
Changes in operating assets and
liabilities:
Distribution received from KKR
PEI Investments, L.P. 4,990 1,996
Increase in prepaid expenses (235) (198)
Increase (decrease) in accrued
liabilities (494) 239
Increase (decrease) in due to
affiliate (666) 32
---------------- ----------------
Net cash flows provided by (used
in) operating activities 936 (757)
---------------- ----------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Partners' capital contributions 4,407 --
---------------- ----------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 5,343 (757)
CASH AND CASH EQUIVALENTS--Beginning
of period 452 1,116
---------------- ----------------
CASH AND CASH EQUIVALENTS--End of
period $ 5,795 $ 359
================ ================
*T
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
June 30, December 31,
2008 2007
----------- ------------
ASSETS:
Investments, at fair value:
Opportunistic investments--Class A (cost of
$210,637 and $512,607, respectively) $ 170,071 $ 458,792
Co-investments in portfolio companies of
private equity funds--Class B (cost of
$2,635,583 and $2,635,583, respectively) 2,506,347 2,653,039
Negotiated equity investments--Class B
(cost of $992,582 and $992,582,
respectively) 852,121 985,557
Private equity funds--Class C (cost of
$1,651,452 and $1,813,751, respectively) 1,666,940 1,847,887
Non-private equity funds--Class D (cost of
$196,093 and $195,869, respectively) 173,953 189,345
----------- ------------
5,369,432 6,134,620
Cash and cash equivalents 207,613 255,415
Cash and cash equivalents held by a non-
private equity fund 139 1,091
Restricted cash 73,766 42,237
Due from affiliate of a non-private equity
fund 814 --
Other assets 6,743 8,044
----------- ------------
Total assets 5,658,507 6,441,407
----------- ------------
LIABILITIES:
Accrued liabilities 35,443 30,730
Due to affiliates 11,399 11,961
Securities sold, not yet purchased (proceeds
of $4,682) 3,945 --
Options written (proceeds of $1,135 and
$7,290, respectively ) 1,008 5,265
Unrealized loss on foreign currency exchange
contracts and interest rate swap, net 95,307 46,051
Other liabilities 116 182
Revolving credit agreement 598,064 1,002,240
Long-term debt 350,000 350,000
----------- ------------
Total liabilities 1,095,282 1,446,429
----------- ------------
NET ASSETS $4,563,225 $ 4,994,978
=========== ============
NET ASSETS CONSIST OF:
Partners' capital contributions $4,836,568 $ 4,836,568
Distributable earnings (loss) (273,343) 158,410
----------- ------------
$4,563,225 $ 4,994,978
=========== ============
*T
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED)
(Amounts in thousands, except percentage amounts)
----------------------------------------------------------------------
June 30, 2008
---------------------------------
Fair Value
as a
Percentage
Fair of Net
Investment Class Cost Value Assets
------------------------------ ----- ---------- ---------- -----------
INVESTMENTS BY TYPE:
Opportunistic investments: A
Fixed income investment $ 140,940 $ 116,487 2.5%
Public equities - common
stocks 69,283 53,072 1.2
Derivative instruments 414 512 0.0
---------- ---------- -----------
210,637 170,071 3.7
---------- ---------- -----------
Co-investments in portfolio
companies of private equity
funds: B
HCA Inc. 250,000 300,000 6.6
Alliance Boots plc. 301,352 298,797 6.5
Energy Future Holdings
Corp. 200,000 280,000 6.1
Dollar General Corporation 250,000 250,000 5.5
The Nielsen Company B.V. 200,000 240,000 5.3
NXP B.V. 250,000 232,475 5.1
Biomet, Inc. 200,000 200,000 4.4
First Data Corporation 200,000 200,000 4.4
Capmark Financial Group
Inc. 137,321 148,500 3.2
KION Group GmbH. 112,824 135,029 3.0
U.S. Foodservice, Inc. 100,000 100,000 2.2
PagesJaunes Groupe S.A. 235,201 74,314 1.6
ProSiebenSat.1 Media AG 198,885 47,232 1.0
---------- ---------- -----------
2,635,583 2,506,347 54.9
---------- ---------- -----------
Negotiated equity investments: B
Sun Microsystems, Inc.
convertible senior notes. 701,164 574,000 12.6
Orient Corporation
convertible preferred
stock. 169,706 196,780 4.3
Aero Technical Support &
Services S.a r.l. 121,712 81,341 1.8
---------- ---------- -----------
992,582 852,121 18.7
---------- ---------- -----------
Private equity funds: C
KKR 2006 Fund L.P. 1,104,954 1,159,029 25.3
KKR European Fund, Limited
Partnership 202,115 186,219 4.1
KKR Millennium Fund L.P. 199,278 182,882 4.0
KKR European Fund II, Limited
Partnership 95,940 86,358 1.9
KKR Asian Fund L.P. 40,188 43,834 1.0
KKR European Fund III,
Limited Partnership 8,977 8,618 0.2
---------- ---------- -----------
1,651,452 1,666,940 36.5
---------- ---------- -----------
Non-private equity funds -
Investments by KKR Strategic
Capital Institutional Fund,
Ltd. D 196,093 173,953 3.9
---------- ---------- -----------
$5,686,347 $5,369,432 117.7%
========== ========== ===========
*T
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED), CONTINUED
(Amounts in thousands, except percentage amounts)
----------------------------------------------------------------------
June 30, 2008
---------------------------------
Fair Value
as a
Percentage
Fair of Net
Investment Cost Value Assets
------------------------------------ ---------- ---------- -----------
INVESTMENTS BY GEOGRAPHY :
North America $3,739,474 $3,754,707 82.3%
Europe 1,643,757 1,266,671 27.8
Asia Pacific 303,116 348,054 7.6
---------- ---------- -----------
$5,686,347 $5,369,432 117.7%
========== ========== ===========
INVESTMENTS BY INDUSTRY :
Health Care $1,083,373 $1,133,065 24.8%
Financial Services 972,630 1,004,830 22.0
Technology 1,109,353 965,849 21.2
Retail 649,362 625,624 13.7
Media/Telecom 932,049 593,054 13.0
Energy 391,725 527,744 11.6
Industrial 448,059 417,582 9.2
Consumer Products 80,625 72,682 1.6
Chemicals 19,171 29,002 0.6
---------- ---------- -----------
$5,686,347 $5,369,432 117.7%
========== ========== ===========
*T
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF SECURITIES SOLD, NOT YET PURCHASED
(UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
June 30, 2008 December 31, 2007
------------------- -------------------
Geography/Instrument
Type/Industry Fair Value Proceeds Fair Value Proceeds
------------------------------ ---------- -------- ---------- --------
North America - Public
equities, common stock:
Financial Services $ 3,945 $ 4,682 $ -- $ --
========== ======== ========== ========
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CONSOLIDATED SCHEDULES OF OPTIONS WRITTEN (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
June 30, 2008 December 31, 2007
------------------- -------------------
Geography/Instrument
Type/Industry Fair Value Proceeds Fair Value Proceeds
------------------------------ ---------- -------- ---------- --------
North America - Public
equities, common stock:
Energy $ 459 $ 235 $ 5,265 $ 7,290
Financial Services 263 240 -- --
Industrial 194 455 -- --
Technology 92 205 -- --
---------- -------- ---------- --------
$ 1,008 $ 1,135 $ 5,265 $ 7,290
========== ======== ========== ========
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
Quarter Ended Six Months Ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
---------- -------- ---------- --------
INVESTMENT INCOME:
Interest income $ 10,126 $ 27,894 $ 22,027 $ 63,223
Dividend income, net of
withholding taxes of $178,
$139, $249 and $765,
respectively 5,385 16,327 8,756 20,131
---------- -------- ---------- --------
Total investment income 15,511 44,221 30,783 83,354
---------- -------- ---------- --------
EXPENSES:
Management fees 13,331 12,319 26,738 19,457
Incentive fees -- 884 -- 1,776
Interest expense 17,784 5,711 37,424 9,606
Dividend expense 322 -- 896 --
General and administrative
expenses 1,270 1,210 2,611 1,926
---------- -------- ---------- --------
Total expenses 32,707 20,124 67,669 32,765
---------- -------- ---------- --------
NET INVESTMENT INCOME (LOSS) (17,196) 24,097 (36,886) 50,589
---------- -------- ---------- --------
REALIZED AND UNREALIZED GAIN
(LOSS) FROM INVESTMENTS AND
FOREIGN CURRENCY:
Net realized gain (loss),
net of withholding tax
(benefit) of $(37), $488,
$(37) and $977,
respectively (42,600) 5,104 (38,602) 16,638
Net change in unrealized
appreciation
(depreciation) (98,922) 122,581 (351,265) 243,188
---------- -------- ---------- --------
Net gain (loss) on
investments and foreign
currency transactions (141,522) 127,685 (389,867) 259,826
---------- -------- ---------- --------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS $(158,718) $151,782 $(426,753) $310,415
========== ======== ========== ========
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
General Limited
Partner Partner Total
-------- ----------- -----------
NET ASSETS--DECEMBER 31, 2006 $10,454 $5,035,945 $5,046,399
-------- ----------- -----------
DECREASE IN NET ASSETS FROM
OPERATIONS FOR THE YEAR ENDED
DECEMBER 31, 2007:
Net investment income 150 25,833 25,983
Net realized gain on investments
and foreign currency transactions 236 113,196 113,432
Net change in unrealized
depreciation on investments and
foreign currency transactions (283) (136,359) (136,642)
-------- ----------- -----------
Net increase in net assets
resulting from operations 103 2,670 2,773
Fair value of distributions. (112) (54,082) (54,194)
-------- ----------- -----------
DECREASE IN NET ASSETS (9) (51,412) (51,421)
-------- ----------- -----------
NET ASSETS--DECEMBER 31, 2007 10,445 4,984,533 4,994,978
-------- ----------- -----------
DECREASE IN NET ASSETS FROM
OPERATIONS FOR THE SIX MONTHS ENDED
JUNE 30, 2008:
Net investment loss (23) (36,863) (36,886)
Net realized loss on investments
and foreign currency transactions (81) (38,521) (38,602)
Net change in unrealized
depreciation on investments and
foreign currency transactions (728) (350,537) (351,265)
-------- ----------- -----------
Net decrease in net assets
resulting from operations (832) (425,921) (426,753)
Fair value of distributions. (10) (4,990) (5,000)
-------- ----------- -----------
DECREASE IN NET ASSETS (842) (430,911) (431,753)
-------- ----------- -----------
NET ASSETS--JUNE 30, 2008 $ 9,603 $4,553,622 $4,563,225
======== =========== ===========
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in thousands)
----------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2008 June 30, 2007
---------------- ----------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net increase (decrease) in net
assets resulting from operations $ (426,753) $ 310,415
Adjustments to reconcile net
increase (decrease) in net assets
resulting from operations to cash
and cash equivalents provided by
(used in) operating activities:
Amortization of deferred
financing costs 435 73
Net realized loss (gain) 38,602 (16,638)
Net change in unrealized
depreciation (appreciation) on
investments 302,009 (252,417)
Increase in unrealized loss on
foreign currency exchange
contracts and interest rate
swap 49,256 9,229
Changes in operating assets and
liabilities:
Purchase of opportunistic
investments (61,601) (582,551)
Purchase of securities to
settle short sales (188,291) --
Purchase of options (4,781) --
Purchase of co-investments in
portfolio companies of
private equity funds -- (490,639)
Purchase of negotiated equity
investments -- (520,870)
Purchase of investments by
private equity funds (167,060) (155,444)
Purchase of investments by KKR
Strategic Capital
Institutional Fund, Ltd. (7,549) (116,894)
Proceeds from sale of
opportunistic investments 331,293 70,987
Proceeds from securities sold
short, not yet purchased 195,324 --
Proceeds from options written 2,109 --
Proceeds from sale of
investments by private equity
funds 321,788 31,758
Proceeds from sale of
investments by KKR Strategic
Capital Institutional Fund,
Ltd. 94 14,938
Decrease in cash and cash
equivalents held by a non-
private equity fund 952 --
Decrease in time deposit -- 650,000
Increase in due from affiliate
of a non-private equity fund (814) --
Decrease in other assets 866 18,208
Increase in restricted cash (31,529) (12,708)
Increase in accrued
liabilities 4,713 11,571
Increase (decrease) in due to
affiliates (562) 2,327
Decrease in other liabilities (66) (18,054)
---------------- ----------------
Net cash flows provided by
(used in) operating
activities 358,435 (1,046,709)
---------------- ----------------
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KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
(Amounts in thousands)
----------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2008 June 30, 2007
---------------- ----------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Payments on borrowings under the
revolving credit agreement (401,237) --
Distributions to partners (5,000) (2,000)
---------------- ----------------
Net cash flows used in
financing activities (406,237) (2,000)
---------------- ----------------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (47,802) (1,048,709)
CASH AND CASH EQUIVALENTS--Beginning
of period 255,415 2,139,621
---------------- ----------------
CASH AND CASH EQUIVALENTS--End of
period $ 207,613 $ 1,090,912
================ ================
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid $ 32,043 $ --
NON-CASH FINANCING ACTIVITIES:
Increase in long-term debt related
to Sun financing $ -- $ 350,000
*T
--30--PDA/ny*
CONTACT: Investor:
KKR KPE LLC
Katherine Becher, +1-212-659-2026
Investor Relations Manager
or
Media:
In the U.S.:
Kekst and Company
Mark Semer, +1-212-521-4800
or
In Europe:
Finsbury
Simon Moyse, +44.207.251.3801
Disclaimer: Deze bekendmaking is officieel geldend in de originele
brontaal. Vertalingen zijn slechts als leeshulp bedoeld en moeten
worden vergeleken met de tekst in de brontaal welke als enige,
juridische geldigheid beoogt.