narrative.md

Published September 27, 2026

# KKR & Co. Inc. (NYSE: KKR) — Business, Risks and Management's Discussion

## Business

*From the fiscal 2025 Annual Report on Form 10-K (year ended December 31, 2025), accession 0001404912-26-000007.*

KKR is a global investment firm that sells alternative asset management, capital markets and insurance
solutions. It manages private equity, real assets and credit strategies for institutional and individual
investors; runs a broker-dealer that arranges and underwrites financings; and, through Global Atlantic,
writes and reinsures retirement and life insurance business. Revenue comes from four sources: recurring
management fees and fee-related performance revenues on managed assets; transaction and monitoring fees
from capital markets services and portfolio companies; carried interest, which entitles KKR to a specified
percentage of investment gains generated on third-party capital; and investment income earned on the firm's
own balance sheet capital, alongside the investment spread Global Atlantic earns between asset yields and
the cost of policyholder benefits.

As of December 31, 2025, KKR managed **$744 billion of assets under management**, of which **$219 billion**
sits at Global Atlantic. Fee-paying AUM was $604.1 billion and uncalled commitments were $118.4 billion.
The firm operated from 36 offices worldwide and employed 5,043 people (2,705 in asset management, 1,491 in
insurance, 847 in subsidiary organizations such as KJRM and K-Star), including approximately 980 asset
management professionals in investment, capital markets and KKR Capstone operating roles.

Founded in 1976, KKR pioneered the leveraged buyout and has expanded from traditional private equity into
leveraged credit, alternative credit, infrastructure, real estate, energy, growth equity and core private
equity. The 2021 acquisition of Global Atlantic added the insurance business. As of December 31, 2010,
traditional private equity was over 70% of total AUM; by December 31, 2025 it was less than 25%.

### Three reporting segments

**Asset Management** contains five business lines:

- **Private Equity** — $229 billion of AUM and $151 billion of FPAUM at December 31, 2025, across
  traditional private equity ($167 billion), core private equity ($41 billion) and growth equity
  ($21 billion). Traditional PE targets control or significant-influence positions through management
  buyouts, public-to-private transactions and carve-outs, with dedicated North America, Europe and Asia
  Pacific funds plus a middle-market strategy. Core PE targets longer-hold, lower-risk-profile companies
  (fund lives up to 25 years from first investment).
- **Real Assets** — $192 billion of AUM and $163 billion of FPAUM, across infrastructure, real estate and
  energy. Infrastructure AUM grew from $17 billion at December 31, 2020 to $100 billion at December 31,
  2025, spanning power and utilities, midstream, energy transition, transportation, asset leasing, water
  and wastewater, telecom and social infrastructure, with Core+ and Core sub-strategies. Real estate
  includes $12 billion from two publicly listed Japanese REITs managed through KJRM. Energy AUM is
  $6 billion, primarily through the management of Crescent Energy Company (NYSE: CRGY).
- **Credit and Liquid Strategies** — the largest business line at $322 billion of AUM and $289 billion of
  FPAUM. Leveraged credit (leveraged loans, high yield, CLOs) is $145 billion. Alternative credit is
  $135 billion, split between asset-based finance ($85 billion, sourced through roughly 20 captive
  origination platforms, up from $7 billion at December 31, 2020) and corporate credit ($50 billion).
  The Strategic Investments Group adds $8 billion. Liquid strategies is the hedge fund platform
  ($34 billion), principally a 39.6% interest in Marshall Wace LLP, reported pro rata.
- **Capital Markets** — arranges debt and equity financing, underwrites and places securities, syndicates
  co-investments, and advises on capital structure, for KKR's own funds and portfolio companies, for Global
  Atlantic and for third parties. Capital markets transaction fees were $930 million in 2025.
- **Principal Activities** — manages the asset management balance sheet, deploying KKR's own capital
  alongside client commitments (general partner commitments are typically 2% to 8% of a fund's total
  commitments), bridging fund capital needs, financing strategic transactions and supporting capital
  markets underwriting. Management notes the magnitude of these commitments has declined over five years
  as funds have scaled and capital has been redirected elsewhere.

Fee economics: drawdown private equity management fees generally run 1.0%–2.0% of committed capital during
the investment period and 0.75%–1.50% of invested capital afterwards; drawdown infrastructure and real
estate 0.75%–1.50%; drawdown credit 0.85%–1.50% of invested capital; CLOs typically 0.4%–0.5% of asset
value; evergreen and open-ended vehicles including K-Series generally 0.50%–1.25% of gross or net asset
value. Carried interest is generally 10% to 20% of net profits realized by limited partners, usually subject
to a 6%–8% preferred return with a general partner catch-up. Since 2014 fund agreements typically require
KKR to share 100% of fund-allocable monitoring, transaction and break-up fees with fund investors, so those
fees are effectively driven by co-investment opportunities. Up to 80% of carried interest earned from the
funds is allocable to employees and other persons through the carry pool held at KKR Associates Holdings L.P.

**Insurance** operates as Global Atlantic, a retirement and life insurer with an over-20-year track record
serving more than 3.5 million policyholders. It was founded at Goldman Sachs in 2004, separated in 2013;
KKR acquired approximately 60% on February 1, 2021 and the remaining stake on January 2, 2024, reaching
100% ownership. Global Atlantic FPAUM was $213 billion at December 31, 2025. Reserves were 41% individual
markets and 59% institutional markets. Individual products are fixed-rate, fixed-indexed and registered
index-linked annuities, distributed through over 250 banks and broker-dealers and approximately 200
independent marketing organizations, plus preneed life sold through approximately 2,400 funeral homes.
Institutional solutions are block and flow reinsurance, pension risk transfer and funding agreements
(including FHLB advances and a funding-agreement-backed notes program with $8 billion outstanding at
December 31, 2025); Global Atlantic has closed reinsurance transactions with over 30 clients. Financial
strength ratings of the life operating subsidiaries are "A" (A.M. Best), "A2" (Moody's), "A" (S&P) and "A"
(Fitch), each with a stable outlook. KKR also sponsors third-party insurance co-investment vehicles such as
the Ivy vehicles, which provided $58 billion of Global Atlantic AUM at December 31, 2025.

**Strategic Holdings**, first reported in the first quarter of 2024, acquires and holds interests in
operating companies owned by the firm, today mainly KKR's participation in its core private equity strategy.
It held stakes in 19 companies at December 31, 2025 and is intended to generate dividend income plus
realized gains on sale. On management's information as of December 31, 2025, KKR's pro-rata share of these
companies' last-twelve-month adjusted revenue was $4.4 billion and adjusted EBITDA $1.1 billion (measured
as of September 30, 2025). Fees and carried interest from third-party investors in the core PE funds stay in
Asset Management, which also charges Strategic Holdings a quarterly management fee and a performance fee on
sales.

### Capital, alignment and regulation

Approximately 92% of AUM is capital with a duration of at least eight years at inception or longer,
including perpetual capital — vehicles with no predetermined requirement to return invested capital, such as
registered funds, K-Series vehicles offered to individual investors, listed companies including Crescent
Energy, and Global Atlantic's own assets. KKR, its employees and other personnel had approximately
$30 billion invested in or committed to the firm's funds and portfolio companies at December 31, 2025:
roughly $15 billion funded from the balance sheet, $10 billion of further balance sheet commitments,
$4 billion of personal investments and $1 billion of additional personal commitments. KKR employees owned
approximately 30% of outstanding common stock (assuming exchange of all vested equity). The capital
allocation framework directs excess earnings to four areas: strategic M&A, Insurance, Strategic Holdings and
share repurchases.

The investor base spans 65 countries across public and corporate pension funds, insurance companies,
sovereign wealth funds, endowments, foundations and investment managers, with private wealth a declared
priority addressable market.

KKR is heavily regulated. Advisory subsidiaries registered with the SEC under the Investment Advisers Act
include Kohlberg Kravis Roberts & Co. L.P., KKR Credit Advisors (US) LLC, KKR Registered Advisor LLC, KKR
Credit Advisors (Singapore) Pte. Ltd. and Global Atlantic Investment Advisors, LLC; FS/KKR Advisor, LLC is
jointly owned with a third party. Registered funds and BDCs advised or sub-advised include KKR Income
Opportunities Fund (NYSE: KIO), KKR Asset-Based Finance Fund, KKR Real Estate Select Trust Inc., FS KKR
Capital Corp. (NYSE: FSK), KKR FS Income Trust and KKR FS Income Trust Select. Listed vehicles advised
include KKR Real Estate Finance Trust Inc. (NYSE: KREF) and Crescent Energy. KKR Capital Markets, LLC and
Global Atlantic Distributors, LLC are SEC- and FINRA-registered broker-dealers subject to the uniform net
capital rule. The four U.S. insurance subsidiaries — Commonwealth Annuity and Life Insurance Company and
First Allmerica Financial Life Insurance Company (Massachusetts), Accordia Life and Annuity Company (Iowa)
and Forethought Life Insurance Company (Indiana) — are licensed in all 50 states, the District of Columbia,
Puerto Rico and the U.S. Virgin Islands, with special purpose captives in Vermont and Iowa financing
redundant reserves under Regulation XXX and AG38. Bermuda subsidiaries Global Atlantic Re Limited and Global
Atlantic Assurance Limited are supervised by the Bermuda Monetary Authority. Irish subsidiaries are
authorized by the Central Bank of Ireland, with AIFMD and MiFID passporting into the EEA; UK entities are
authorized by the FCA; Asia-Pacific activities run through licensed entities in Japan, Hong Kong and
Singapore. K-Star Asset Management LLC acts as special servicer for certain CMBS and CLO transactions and
must maintain special servicer ratings from Fitch, S&P Global Ratings and DB Morningstar.

## Risk factors

*From the fiscal 2025 Form 10-K, accession 0001404912-26-000007. The Q2 2026 Form 10-Q states that, other
than as set forth in its Business Environment discussion, there were no material changes to these risk
factors.*

**Business and earnings variability**

- Market and economic conditions — interest rates, credit availability, inflation, growth, trade barriers,
  commodity prices, foreign exchange and market liquidity — directly drive investment values, exit
  opportunities, fundraising, capital markets fee volume, policyholder behavior and the cost of guaranteed
  insurance benefits.
- **Parts of earnings and cash flow are highly variable.** Results swing with investment valuations, the
  accrual and payment of carried interest, and the pace and size of deployments and realizations. Carried
  interest is only distributable after a realization event, positive since-inception returns above any
  hurdle, and recovery of cost on below-cost investments; even then the general partner may defer. Insurance
  new business volumes in block reinsurance, pension risk transfer and funding agreements are episodic, and
  the accounting for certain insurance investments and liabilities adds quarter-to-quarter volatility.
- **Clawback.** Carry-paying funds include clawback provisions requiring return of previously distributed
  carry, typically after tax, if later performance disappoints. If current or former employees who received
  carry through the carry pool do not fund their share, KKR must fund the entire obligation.
- **Fundraising.** Failure to raise third-party capital for funds, the insurance business or specific
  transactions would hurt AUM, revenue and liquidity. Successor funds may not match predecessor size, timing
  or terms; competitive pressure may force reduced fees, fee holidays or other concessions. Institutional
  investors — especially public pension funds — may cut or suspend commitments, prefer separately managed
  accounts or specialized vehicles, consolidate with fewer managers, or hire their own professionals and
  become competitors.
- **Balance sheet.** KKR deliberately runs a larger balance sheet than most asset management peers, using it
  to capitalize the insurance business, underwrite capital markets commitments, commit to funds, warehouse
  investments pending fundraising, and buy Strategic Holdings companies. Insurance obligations must be paid
  regardless of asset performance; failed asset-liability management produces insurance operating losses and
  capital calls. Unsyndicated underwriting exposures may have to be sold at a loss or held. In structured
  transactions where KKR provides the subordinated or equity tranche, it can lose its entire interest ahead
  of third parties.
- **Liquidity.** Refinancing may be unavailable on reasonable terms; covenant breaches could trigger
  prepayment and cross-defaults on the corporate revolving credit facility. Subsidiary-level debt and
  insurance and broker-dealer regulation restrict upstream distributions. K-Series investors can redeem, and
  policyholders can surrender; reinsurance agreements require collateral in trust and can carry recapture
  rights. FHLB borrowing is described as an important liquidity source for the U.S. insurance subsidiaries.
- **People.** Loss of the Co-Founders, Co-Chief Executive Officers or other key personnel, misconduct by
  them, or key-person provisions in fund agreements that let investors cut unfunded commitments. Retention
  depends on carry pool distributions that may not have sufficient cash; noncompete restrictions are
  increasingly limited or banned by law.
- **Growth and integration.** New lines of business, strategies and acquisitions bring capital
  requirements, deal-completion risk, integration and control risk, unknown contingent liabilities,
  regulatory approvals and tax structuring exposure. The 10-K flags two specific initiatives: the Strategic
  Holdings segment, where expected dividends, returns and growth may not materialize; and the 2025 decision
  to reposition the insurance business toward longer-duration liabilities and assets (including private
  equity and real assets, non-U.S. expansion and more third-party co-investment capital), which management
  says could hurt near- and medium-term results during the rotation. It also notes that following the Arctos
  acquisition KKR, its vehicles and portfolio companies must comply with sports league ownership rules that
  prohibit or restrict certain investments and create conflicts of interest.
- **Competition** across alternative and traditional asset managers, banks, commercial finance companies,
  sovereign wealth funds, BDCs and strategic buyers, in both fundraising and deal sourcing; competitors may
  have lower cost of capital, higher risk tolerance, longer records or more favorable fund terms.
- **Operations and technology.** Heavy reliance on third-party service providers, administrators and
  financial intermediaries; counterparty default and intermediary insolvency risk; technology infrastructure
  disruption; residual manual processes subject to execution error. The 10-K notes Global Atlantic was
  previously the subject of policyholder and agent class action litigation and regulatory matters arising
  from service disruptions at a third-party administrator, and remains responsible for servicing under
  insurance regulation and contracts. Cybersecurity failures and data breaches, including at third parties
  that have already experienced incidents, are called out separately, as are the competitive, operational,
  legal and regulatory risks of artificial intelligence.
- **Litigation and reputation**, including legal claims, investigations, negative publicity, and liabilities
  or reputational harm arising from the actions of portfolio companies.
- **Tax.** Changes in tax law or adverse interpretations could raise the effective tax rate and tax
  liability.

**Regulatory**

Complex, extensive and evolving laws; suspension, revocation or limitation of registrations and licenses;
loss of exemptions or the application of enhanced group-level regulation; reliance on Investment Company Act
exclusions for the K-Series holding company conglomerates, whose forced registration would make current
operations impractical. Distribution of financial products to individual investors carries heightened
regulatory, litigation and reputational risk, compounded by third-party distribution channels KKR does not
control, more frequent valuations (monthly or daily NAV for K-Series and certain redeeming funds) and
enhanced liquidity management. Global investment activity brings investment-related and competition law
constraints; ERISA and Section 4975 fiduciary and prohibited-transaction provisions could reach the funds and
insurance subsidiaries; sustainability-related laws and disclosure rules add compliance cost and enforcement
and reputational exposure.

**Investment activities**

Historical returns may not recur. Valuation of illiquid investments is subjective and uncertain, and
realizations may differ from carrying values. Many investments are illiquid for long periods. Complex
opportunities carry unique business, regulatory, legal and tax risk; due diligence may not surface all
relevant facts. Significant leverage is used by KKR, its vehicles and its portfolio companies, and CLO
exposure can amplify it. Non-U.S. investing adds country risk. Real asset investments carry greater
liabilities and operational complexity than operating companies. Failure to manage conflicts of interest
across funds, insurance assets and individual-investor vehicles is called out explicitly. Third-party
investors may fail to fund capital calls.

**Insurance activities**

Highly competitive markets; inability to identify or manage growth; reinsurance sourcing is not guaranteed
and block transaction volumes vary widely quarter to quarter and annually; volatile conditions and sustained
increases or decreases in interest rates; disruption of the third-party distribution network, including
partners ceasing to offer Global Atlantic products; actual experience differing from assumptions and
estimates; ratings downgrades impairing sales, funding and debt issuance; risks on business ceded to and
assumed from other reinsurers, including a reinsurer's insolvency or unwillingness to pay; U.S. "engaged in
trade or business" tax uncertainty for the Bermuda subsidiaries; uncertainty over implementation of the
Bermuda corporate income tax; heavy and changing insurance regulation; and reliance on permitted statutory
accounting practices.

**Organizational structure**

Until the **Sunset Date — no later than December 31, 2026** — the Series I preferred stockholder, jointly
controlled by the Co-Executive Chairmen acting together, holds significant voting power, can appoint and
remove directors, and must approve specified corporate actions; common stockholders cannot remove directors
until after that date. KKR is a "controlled company" and has elected not to comply with certain NYSE
governance requirements. Under the Reorganization Agreement, by the Sunset Date KKR has committed to
eliminate the Series I preferred stock and establish one-vote-per-share common stock voting; implementing
those remaining structural and governance changes could be disruptive, costly or unsuccessful. Anti-takeover
provisions include blank-check preferred, advance notice requirements, disenfranchisement of any non-Series
I holder acquiring 20% or more of a class without board consent, and limits on convening meetings. The
ability to pay periodic common dividends is not guaranteed, and amounts may become due under the tax
receivable agreement.

## Management's discussion — fiscal 2025

*From the fiscal 2025 Form 10-K, accession 0001404912-26-000007.*

### Business environment

The United States grew through 2025 with inflation above the Federal Reserve's 2.0% target. The Fed cut the
target range three times, including twice in the fourth quarter, to 3.50%–3.75%, citing a slowing labor
market while staying cautious on inflation. Eurozone real GDP growth was moderately positive; the ECB cut
the deposit rate four times in the first half to 2.00% and then held. Japan reaccelerated and the Bank of
Japan raised its policy rate from 0.25% to 0.75%. China grew but faced weak domestic demand, a contracting
property sector and U.S. trade tension.

Reported indicators: U.S. real GDP +2.2% (2024: +2.8%); Eurozone +1.4% (+0.9%); Japan +1.1% (−0.2%); China
+5.0% (+5.0%). Target fed funds 3.625% at year-end versus 4.375%; ECB 2.0% versus 3.00%; BoJ 0.75% versus
0.25%; PBoC 3.0% versus 3.10%. U.S. core CPI +2.6% year over year versus +3.2%. U.S. unemployment 4.4%
versus 4.1%. The S&P 500 returned 17.9%, MSCI Europe 36.3%, MSCI Asia Pacific 28.7% and MSCI World 21.6% in
dollar terms; the VIX ended at 15.0 versus 17.4. U.S. investment grade spreads tightened 3 basis points, the
S&P/LSTA Leveraged Loan Index rose 5.9% and the BofAML HY Master II Index 8.5%; the U.S. 10-year yield fell
40 basis points while German, Japanese and Chinese yields rose. The euro rose 13.4% and sterling 7.7%
against the dollar. Management notes that from March 2025 through the filing date, markets have seen
elevated volatility from geopolitical and trade concerns, including U.S. tariffs and tariff threats since
April 2025, which may affect valuations, capital markets volume, deployment, realizations and fundraising.

### GAAP results

Total GAAP revenues were **$19.46 billion**, down from $21.88 billion, driven entirely by the insurance
line: net premiums fell $4.50 billion to $3.40 billion (block reinsurance volume is episodic), partly offset
by net investment income up $1.09 billion to $7.67 billion. Asset Management and Strategic Holdings revenues
rose $623 million to $7.84 billion, on fees and other of $4.06 billion (management fees $2.50 billion,
transaction fees $1.76 billion) and capital allocation-based income of $3.77 billion (carried interest
$3.49 billion). Total expenses fell $1.97 billion to $19.01 billion, again on insurance (net policy benefits
and claims down $2.56 billion). Total investment income rose $1.68 billion to $6.65 billion.

Income before taxes was $7.10 billion, up $1.24 billion; net income was $6.15 billion. But noncontrolling
interests absorbed far more of it — $3.62 billion versus $1.76 billion — so **net income attributable to KKR
& Co. Inc. common stockholders fell to $2.25 billion from $3.08 billion**, after $118.6 million of Series D
Mandatory Convertible Preferred Stock dividends (none in 2024).

### Segment and non-GAAP results

| ($ thousands) | 2025 | 2024 |
|---|---|---|
| Fee Related Earnings | 3,714,313 | 3,267,796 |
| Insurance Operating Earnings | 1,109,395 | 1,014,546 |
| Strategic Holdings Operating Earnings | 162,096 | 76,211 |
| **Total Operating Earnings** | **4,985,804** | **4,358,553** |
| Net Realized Performance Income | 491,736 | 608,788 |
| Net Realized Investment Income | 412,796 | 542,163 |
| **Total Investing Earnings** | **904,532** | **1,150,951** |
| **Total Segment Earnings** | **5,890,336** | **5,509,504** |
| Interest Expense, Net and Other | (404,800) | (318,441) |
| Income Taxes on Adjusted Earnings | (1,108,064) | (988,797) |
| **Adjusted Net Income** | **4,377,472** | **4,202,266** |

The story is recurring earnings up, realizations down. Asset Management Segment Earnings rose $218 million to
$4.55 billion. Management fees rose $639 million to $4.10 billion: Private Equity $1.53 billion (North
America Fund XIV fees commencing in the second quarter of 2025 and new K-Series capital, less the Ascendant
retroactive-fee comparison, North America Fund XIII entering its post-investment period and paying on
invested rather than committed capital, and termination of Asian Fund II fees in the fourth quarter of 2024);
Real Assets $1.30 billion (Global Infrastructure Investors V fees commencing in the third quarter of 2024,
infrastructure K-Series capital, higher Global Atlantic fees); Credit and Liquid Strategies $1.27 billion
(Global Atlantic inflows, higher alternative credit fee base, new U.S. and European CLO issuance).

Transaction and monitoring fees, net fell $73 million to $1.09 billion because Capital Markets transaction
fees fell $72 million to $930 million: KKR completed **404 capital markets transactions** (49 equity, 355
debt) versus 397 (56 equity, 341 debt), so volume rose while average deal size fell, and equity mandates —
which carry higher fee rates — declined. About 15% of Capital Markets transaction fees came from unaffiliated
third parties (2024: 13%) and about 54% were generated outside North America (2024: 47%). Fee related
performance revenues rose $44 million to $182 million, mostly from infrastructure K-Series vehicles.

Insurance Operating Earnings rose $95 million to $1.11 billion: net investment income up $895 million on
higher average AUM from cumulative new business growth and higher portfolio yields, against net cost of
insurance up $780 million on reserve growth and higher crediting rates and the run-off of older business
written at lower rates. The annual assumption review was a $40.1 million favorable item.

Strategic Holdings Segment Earnings rose $68 million to $232 million. 2025 dividends came from 1-800
Contacts, Exact Holding B.V., April S.A., Atlantic Aviation FBO Inc. and ERM Worldwide Group Limited;
realized gains came from the sales of CyrusOne Inc. and Refresco Group B.V. Intersegment management and
performance fees charged by Asset Management were $36.6 million and $12.3 million.

Total Investing Earnings fell $246 million, on lower realized investment income and lower net realized
performance income — the latter reduced by repayment of the **Asian Fund II clawback obligation in the
fourth quarter of 2025**. Interest expense, net and other rose $86 million, mainly Series D preferred
dividends following the first-quarter 2025 issuance.

### Operating metrics and capital

AUM reached **$743.9 billion**, up $106.3 billion; FPAUM $604.1 billion, up $92.2 billion; uncalled
commitments $118.4 billion; capital invested $94.6 billion versus $83.6 billion. By business line, Private
Equity AUM rose $34.0 billion to $229.4 billion (HealthCare Royalty Management funds acquired July 30, 2025;
North America Fund XIV and PE K-Series capital; appreciation at Asian Fund IV, North America Fund XIII, core
PE and PE K-Series; offset by the release of commitments from a strategic investor partnership with an
insurance client and distributions from Asian Fund IV, Americas Fund XII and Asian Fund III). Real Assets
rose $26.5 billion to $192.5 billion. Credit and Liquid Strategies rose $45.8 billion to $322.0 billion.
Portfolio appreciation for the year: traditional private equity +14% (public holdings +16%, private +14%),
growth equity +13%, core private equity +7%, infrastructure +11%, opportunistic real estate equity +5%.

KKR Book Value, a non-GAAP measure, was **$33.05 billion** against GAAP common stockholders' equity of
$28.36 billion; full conversion of the Series D preferred would have added $2.5 billion of book value and
20.8 million shares. Cash and short-term investments on the segment basis were $4.79 billion, and Asset
Management segment investments $8.63 billion. Netting holes in excess of $50 million existed only at North
America Fund XI, at $417 million, where remaining accrued unrealized gains exceeded the hole. Approximately
$150 million of previously distributed carried interest was subject to clawback assuming liquidation at
reported fair values, with no single fund's clawback above $50 million that had not already reduced net
realized performance income. Approximately $439 million remained under the share repurchase program as of
January 30, 2026.

## Current quarter — second quarter 2026

*From the Form 10-Q for the quarter ended June 30, 2026, accession 0001404912-26-000027.*

### Scale and the Arctos addition

AUM reached **$796.5 billion** at June 30, 2026, up $38.6 billion from $757.9 billion at March 31, 2026, of
which $220 billion is Global Atlantic. FPAUM was $638.4 billion (from $614.8 billion), uncalled commitments
$142.7 billion (from $124.9 billion), and capital invested in the quarter $24.2 billion versus $17.7 billion
a year earlier. Private Equity AUM rose $23.7 billion to $254.7 billion, of which **$16.0 billion was
Arctos AUM at closing**, with further growth from Asian Fund V, PE K-Series vehicles and Arctos Keystone
Fund I, and appreciation at North America Fund XIII, Americas Fund XII and European Fund VI. Real Assets AUM
rose $13.0 billion to $210.9 billion (Helix Digital Infrastructure, infrastructure K-Series, Global
Infrastructure V). Credit and Liquid Strategies rose only $1.9 billion to $330.8 billion, as Global Atlantic
inflows, private credit raises and CLO issuance were largely offset by policyholder payments, fund
distributions and redemptions including at Marshall Wace. Quarterly value change was modest: traditional
private equity +4% (private holdings +2%, public +18%), growth equity +2%, core private equity essentially
flat, infrastructure +1%, opportunistic real estate equity −1%.

**Arctos.** On May 4, 2026 KKR completed its acquisition of 100% of Arctos Management Company, LLC (Arctos
Partners, LP in the February 2026 Form 8-K), agreed February 4 and announced February 5, 2026. Arctos
provides strategic growth capital and liquidity solutions to sports franchises and to private investment fund
sponsors. Under the transaction agreement KKR agreed to pay
**$1.4 billion of initial consideration** in cash and KKR equity securities, plus **up to $550 million of
additional equity securities** contingent on KKR's share price and Arctos-specific performance targets; the
initial equity component was sized using a contractual reference price of $130.62 per share. Measured under
business combination accounting, where equity was valued at the May 4, 2026 closing price of $103.33 and
service-contingent equity is instead expensed post-combination, **total consideration transferred was
$560 million** — $253 million cash (including $100 million deferred), $160 million in KKR common stock and
$147 million in exchangeable securities. Provisional intangibles of $331 million were recognized
($310 million investment management contracts, $21 million investor relationships) plus $162 million of
goodwill, all allocated to Asset Management; purchase accounting is provisional and to be finalized within a
year of closing. Revenues and earnings attributable to Arctos after closing were determined to be immaterial
for the three and six months ended June 30, 2026, so no pro forma results were presented.

### Results

GAAP total revenues were **$5.73 billion** versus $5.09 billion. Of the $637 million increase, $368 million
came from Asset Management and Strategic Holdings — where the principal drivers were management fees up
$237 million, carried interest up $137 million and transaction fees up $25 million, partly offset by fee
credits $46 million more negative and general partner capital interest down $26 million — and $269 million
from Insurance, where GAAP Insurance segment net investment income rose $176 million and net
investment-related gains rose $139 million, against net premiums down $33 million on lower direct pension
risk transfer premiums.

Income before taxes fell to $1.37 billion from $1.53 billion despite the higher revenue, as total expenses
rose $660 million and total investment income fell $132 million: insurance net policy benefits and claims rose $517 million (the change
in the value of embedded derivatives in Global Atlantic's fixed indexed annuity products, higher crediting
rates, and reserves on newly written preneed business), asset management compensation and benefits rose
$112 million (equity-based grants, discretionary cash compensation and accrued carried interest
compensation) and general, administrative and other rose $126 million (acquisition-related costs, higher
fund-reimbursable expenses, and information technology and corporate costs), while dividend income fell
$109 million and interest income $77 million. Income attributable to noncontrolling interests nonetheless
fell sharply — $373 million versus $776 million — which the filing attributes to a lower level of net gains
from investment activities at the consolidated investment funds and other investment vehicles. **Net income
attributable to common stockholders rose to $660.1 million from $472.4 million** after $40.4 million of
Series D preferred dividends. There were 897,635,601 shares of common stock outstanding as of
August 5, 2026.

| ($ thousands) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Fee Related Earnings | 1,214,148 | 886,754 | 2,230,523 | 1,709,357 |
| Insurance Operating Earnings | 288,220 | 277,932 | 548,550 | 536,704 |
| Strategic Holdings Operating Earnings | 37,036 | 29,121 | 85,332 | 60,607 |
| **Total Operating Earnings** | **1,539,404** | **1,193,807** | **2,864,405** | **2,306,668** |
| Net Realized Performance Income | 211,884 | 109,314 | 409,075 | 197,303 |
| Net Realized Investment Income | 191,325 | 130,898 | 294,941 | 316,161 |
| **Total Segment Earnings** | **1,942,613** | **1,434,019** | **3,568,421** | **2,820,132** |
| **Adjusted Net Income** | **1,492,694** | **1,063,350** | **2,742,233** | **2,097,338** |

Asset Management Segment Earnings rose $460 million to $1.59 billion. Management fees rose $254 million to
$1.25 billion — Private Equity $491 million (Arctos fees from the acquisition, North America Fund XIV on
capital raised since June 30, 2025, PE K-Series, offset by a fee rate step-down at Americas Fund XII in the
third quarter of 2025), Real Assets $418 million (Global Infrastructure Investors V retroactive and new
capital, infrastructure K-Series, Asia Infrastructure III fees commencing in the fourth quarter of 2025),
Credit and Liquid Strategies $341 million (CLO issuance, alternative credit fee base, Global Atlantic
inflows). Retroactive fees on newly raised capital were approximately $41 million in Private Equity and
$52 million in Real Assets in the quarter.

Realized performance income more than doubled to **$847.5 million** from $418.9 million, essentially all
Private Equity ($830.7 million versus $355.5 million) and concentrated in Americas Fund XII
($497.2 million), Asian Fund III ($130.0 million), Asian Fund IV ($68.5 million) and European Fund V
($44.3 million). The underlying realizations were the sales of OneStream Software, LLC (Americas Fund XII
and Next Generation Technology Growth Fund), Flow Control Group (Americas Fund XII) and Kokusai Electric
Corporation (Asian Fund III). Real Assets realized performance income was nil, against $27.4 million a year
earlier. Realized investment income rose to $189.7 million on the same three exits, partly offset by a
realized loss on a real assets investment and losses on sales of revolving credit facilities from Capital
Markets.

Two presentation changes matter for comparability. **Beginning in the second quarter of 2026, performance
revenues from K-Series Private Equity vehicles — approximately $160 million in the quarter — are reported in
fee related performance revenues within fee related earnings**; the comparable approximately $80 million in
the second quarter of 2025 sat in net realized performance income, and KKR did not recast prior periods on
the grounds that the effect was not material to previously reported results. The change does not affect total
segment revenues, Total Segment Earnings, GAAP net income or Adjusted Net Income, but it does inflate the
year-over-year growth in fee related performance revenues, which rose $201 million to $254.7 million.
Separately, from the first quarter of 2026 the consolidated statements of operations combine the former
"Insurance Expenses" and "General, Administrative and Other" into a single "Policy and Other Operating
Expense" line, with prior periods reclassified and no effect on total expenses, pre-tax income or net income
attributable to KKR; and Insurance segment reporting reclassified certain operating expenses from "General,
Administrative and Other" to "Net Cost of Insurance," with prior periods recast and no effect on Insurance
Operating Earnings.

Capital Markets transaction fees fell $21 million to $178.2 million on smaller average deal size, despite
**112 transactions** (15 equity, 97 debt) versus 93 (10 equity, 83 debt). The geographic and client mix
swung hard: approximately 12% of Capital Markets transaction fees came from unaffiliated third parties
versus 20%, and approximately 31% were generated outside North America versus approximately 69% a year
earlier. Beginning with the second quarter of 2026, KKR has agreed to **waive 100% of its portion of the FSK
incentive fee for the next four consecutive quarters**, and no FSK performance revenues were recognized in
the quarter.

Insurance Operating Earnings rose only $10.3 million to $288.2 million. On the segment basis, net investment
income rose $165 million to $1.95 billion on higher average AUM, investment realizations and higher portfolio
yields from repositioning into higher-yielding fixed maturity securities and alternative asset classes such
as real assets; net cost of insurance rose $142 million to $1.47 billion on reserve growth and higher
crediting rates. New business volumes fell materially year over year: individual retirement products $2,293 million
versus $3,160 million, preneed life $318 million versus $284 million, and the institutional channel
$1,224 million versus $3,819 million — consistent with management's stated repositioning toward
longer-duration liabilities and with the episodic nature of block reinsurance and funding agreements.

Strategic Holdings Segment Earnings rose to $67.1 million from $29.1 million. Second-quarter 2026 dividends
came from USI Insurance Services LLC, against April SA a year earlier, and net realized investment income of
$30.1 million came from the partial sale of Viridor Limited. Intersegment management and performance fees
were $11.0 million and $5.3 million.

Interest expense, net and other rose $41.9 million to $135.5 million on note issuances since June 30, 2025
and lower bank interest income. The tax benefit from equity-based compensation included in income taxes on
adjusted earnings was $55.4 million versus $29.2 million, raising Adjusted Net Income by 4% versus 3%.

### Business environment, dividends and litigation

The U.S. economy continued to grow in the quarter with inflation above the Fed's 2.0% target and the federal
funds rate left unchanged at 3.625%. The ECB **raised** its deposit rate to 2.25% and the Bank of Japan
raised its policy rate to 1.00%; the PBoC held at 3.0%. U.S. annualized real GDP growth slowed to 1.5% from
2.1% in the first quarter, and China's to 3.6% from 5.2%. Equity markets were strong (S&P 500 +15.2%, MSCI
Asia Pacific +21.5% for the three months) and volatility fell sharply, with the VIX ending at 16.5 versus
25.3 at March 31, 2026. U.S. investment grade spreads tightened 14 basis points. Japan spot LNG import
prices rose to about $17.63 per MMBtu from about $11.19. Management again cites tariffs and tariff threats
since April 2025 and Middle East conflicts as sources of volatility affecting valuations, capital markets
volume, deployment, realizations and fundraising.

KKR announced on February 5, 2026 that its dividend policy is an annual aggregate of $0.78 per common share
($0.195 quarterly), beginning with the dividend announced with first-quarter 2026 results. Since 2015 KKR has
repurchased or retired equity grants representing 98.1 million shares for $3.1 billion, an average of $31.79
per share; approximately **$87 million remained under the repurchase program as of July 24, 2026**.

As disclosed in this 10-Q, the U.S. Department of Justice Antitrust Division's civil complaint filed
January 14, 2025 in the Southern District of New York, alleging Hart-Scott-Rodino premerger notification
violations for certain 2021 and 2022 transactions and seeking civil penalties and equitable relief, remained
in litigation as of the filing, with KKR's motion to dismiss filed April 17, 2025 and KKR's own
countersuit partly stayed. The filing also notes the European Commission's investigation relating to the
acquisition of certain infrastructure assets of Telecom Italia S.p.A. and FiberCop S.p.A., and the
long-running Kentucky Retirement Systems litigation involving Prisma Capital Partners LP.

## Subsequent events

*The items below, through share repurchase capacity, are from the Form 10-Q for the quarter ended June 30,
2026, accession 0001404912-26-000027 — the subsequent events note and the debt obligations note. They speak
as of that filing's date, August 6, 2026.*

- **Common dividend.** A dividend of **$0.195 per share of common stock** was declared and announced on
  July 30, 2026, payable August 25, 2026 to holders of record as of the close of business on August 10,
  2026.
- **Preferred dividend.** A dividend of **$0.78125 per share of Series D Mandatory Convertible Preferred
  Stock** was declared and announced on July 30, 2026 and set aside for payment, payable September 1, 2026
  to holders of record as of the close of business on August 15, 2026.
- **Corporate revolving credit facility replaced.** On **July 30, 2026**, KKR Group Partnership L.P. and
  Kohlberg Kravis Roberts & Co. L.P. entered into a Fourth Amended and Restated Credit Agreement with HSBC
  Bank USA, National Association as administrative agent, which amends and restates in its entirety the
  Third Amended and Restated Credit Agreement dated July 3, 2024, providing a **$3.0 billion** senior
  unsecured multicurrency revolving facility maturing July 30, 2031. Borrowings are available for general
  corporate purposes in U.S. dollars and other currencies, with U.S. dollar interest based on term SOFR or an
  alternate rate, and may be prepaid, terminated or reduced without penalty.
- **Share repurchase capacity.** Approximately **$87 million** remained available under the share
  repurchase program as of July 24, 2026.

No acquisitions, divestitures or litigation resolutions are reported in the subsequent events note of that
filing.

### After the filing date

*From Forms 8-K filed August 27 and August 31, 2026 — accessions 0001140361-26-034520 and
0001140361-26-034930.*

- **Antitrust settlement with the Department of Justice.** On **August 26, 2026**, KKR entered into a
  Stipulation and Order with the DOJ Antitrust Division to resolve the civil antitrust complaint described
  above. Contingent on a proposed final judgment becoming effective, a KKR subsidiary would pay
  **$250.0 million** to the Antitrust Division, and the Division would release all defendants from the claims
  made in the complaint; the Division also notified KKR that it has terminated all of its related
  investigations. The stipulation and a proposed final judgment are to be filed with the U.S. District Court
  for the Southern District of New York, where the proposed judgment is subject to judicial approval under
  the Antitrust Procedures and Penalties Act (accession 0001140361-26-034520).
- **USI.** On **August 31, 2026**, KKR posted a presentation titled "Sale of USI Insurance Services to
  Aon plc" under Item 7.01; the Form 8-K itself discloses no transaction terms (accession
  0001140361-26-034930). USI is the company named above as the source of second-quarter 2026 Strategic
  Holdings dividends.