As an investment manager, our role is to use a rigorous and disciplined investment underwriting approach. One that will help our subsidiary companies generate attractive leveraged, risk-adjusted returns for investors. Our strategic objective is to create a counter-cyclical business that leverages KKR insight, relationships, and investment experience while managing our funds. We monitor our investments on a daily basis, and are also proactively identifying new investment ideas.

As long-time, experienced investors, we recognize that sectors in favor today will most likely be out-of-favor tomorrow and vice versa. We also believe that capital flows have a tremendous impact on business performance over the long term. If you have an illiquid portfolio, you cannot take advantage of these opportunities as they arise. That said, we adhere to the following investment philosophy:

Multi-Asset Strategy: We invest in multiple classes of assets that allow us to rotate sectors as market and economic indicators dictate.

Focus on Credit: We have a fundamental credit strategy that uses a private equity approach to underwriting industries and companies

Low-Cost, Liability Overlay: We have a conservative and low-cost liability overlay — meaning we have a superior cost structure and scale compared to other financial institutions.

KKR Leverage: As significant customers of Wall Street, we believe that our association with KKR gives us leverage to favorable financing terms and conditions, favorable transaction allocations, and favorable access to proprietary transactions.