KKR Private Equity Investors Reports Results for Partial Year Ended December 31, 2006



    Investments and Pending Transactions of $4.3 billion as of March 23, 2007

    Annualized Return of 9.2% for the Fourth Quarter of 2006

    GUERNSEY, CHANNEL ISLANDS, March 28 /CNW/ - 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 initial annual period ended December 31, 2006. KPE commenced
operations on May 10, 2006 with $4,830.1 million of investable capital, which
has grown to $5,035.6 million in net asset value ("NAV") as of December 31,
2006.

    KPE invests its capital as the sole limited partner of KKR PEI
Investments, L.P. (the "Investment Partnership"). As of March 23, 2007, the
Investment Partnership's investments and pending fundings into announced
transactions totaled $4.3 billion, excluding temporary investments. The $4.3
billion of actual and pending investments was comprised of $1.9 billion of
investments at December 31, 2006 at fair value, $1.2 billion of subsequent
investment activity on a cost basis and $1.2 billion of identified
transactions as of March 23, 2006. In addition, the remaining undrawn
commitments to investment funds totaled $1.4 billion as of March 23, 2006.

    Henry R. Kravis, Co-Founder of KKR and Co-Chairman of KPE's Managing
General Partner's Board of Directors, commented, "In just over ten months of
operations, we have been able to identify and deploy over 90% of KPE's capital
in a variety of investments. Recently, the pace of these investments has
accelerated as our unique sourcing model has allowed us to identify a variety
of large and attractive situations."

    George R. Roberts, Co-Founder of KKR and Co-Chairman of KPE's Managing
General Partner's Board of Directors, added, "Our deep industry knowledge and
global approach allows us to selectively capitalize on the range of
opportunities available at the high-end of the private equity market. We
remain confident that KKR's disciplined global approach will continue to
result in a sustainable competitive advantage."

    Results of Operations

    As of December 31, 2006, KPE's net asset value per unit was $24.81,
adjusted for the $0.19 distribution paid on December 15, 2006, compared to
$23.61 on May 10, 2006, on a pro-forma basis, as if the over-allotment option
was exercised on such date. The NAV per unit at December 31, 2006 net of the
$0.19 distribution was $24.62. On an annualized basis, KPE's total return for
the quarter ended December 31, 2006 was 9.2 percent and for the period from
the date of commencement of operations, on May 10, 2006, to December 31, 2006
was 7.8 percent.

    Operating results of KPE for the partial year ended December 31, 2006,
were highlighted as follows:

    --  Net investment income was $126.5 million, which primarily represented
interest income from cash management activities;

    --  Net realized gain on investments and foreign currency transactions
was $34.5 million and resulted primarily from the sale of opportunistic
investments;

    --  Net unrealized gain on investments and foreign currency transactions
was $83.3 million primarily due to net appreciation in the value of portfolio
companies of KKR's private equity funds; and

    --  The resulting net increase in net assets resulting from operations
was $244.4 million.

    Investments

    As of December 31, 2006, the Investment Partnership held $3.1 billion of
temporary investments and the portfolio of the Investment Partnership
consisted of investments, valued at fair value, totaling $1,901.8 million as
follows:

    
    -- Investments of $701.8 million through KKR's private equity funds:
        -- $326.9 million in KKR European Fund, Limited Partnership,
        -- $178.2 million in KKR Millennium Fund L.P.,
        -- $139.6 million in KKR 2006 Fund L.P., and
        -- $57.1 million in KKR European Fund II, Limited Partnership.

    -- Co-investments of $958.1 million in portfolio companies of KKR's
       private equity funds:
        -- $259.9 million in NXP B.V., a leading semi-conductors business,
        -- $250.0 million in HCA Inc., a leading provider of healthcare
           services,
        -- $200.0 million in The Nielsen Company B.V. (formerly VNU Group
           B.V.), a global information and media company,
        -- $135.0 million in Capmark Financial Group Inc., a leading
           commercial real estate finance company, and
        -- $113.2 million in KION Group GmbH, a leading forklift truck
           business.

    -- Opportunistic investments of $241.9 million:
        -- $158.5 million of publicly traded securities, and
        -- $83.4 million in KKR Strategic Capital Institutional Fund,
           Ltd., a KKR-sponsored opportunistic credit fund.
    

    Subsequent to December 31, 2006 and through March 23, 2007, the
Investment Partnership made additional investments, which totaled $1,225.2
million, consisting of the following:

    
    -- KKR's private equity funds - $12.3 million of net capital
       contributions with respect to limited partner interests in KKR's
       private equity funds.

    -- Co-investments of $434.1 million:
        -- $235.2 million in PagesJaunes Groupe S.A., the leading
           publisher of printed and on-line directories in France, and
        -- $198.9 million in ProSiebenSat. 1 Media AG, Germany's largest
           television broadcasting group.

    -- Opportunistic investments of $778.8 million:
        -- $350.0 million in convertible senior notes of Sun Microsystems,
           Inc. (net of $350.0 million of financing),
        -- $370.5 million of net purchases of publicly traded securities
           (net of $226.7 million of financing), and
        -- $58.3 million of further capital contributions to KKR Strategic
           Capital Institutional Fund, Ltd.
    

    As of March 23, 2007, the Investment Partnership expects to fund an
aggregate of approximately $1,225.0 million of additional capital with respect
to certain of KKR's private equity fund investments, including related
co-investments in:

    --  TXU Corp., a Dallas-based energy company,

    --  Dollar General Corp., a Fortune 500(R) retailer,

    --  Biomet, Inc., a leading designer and manufacturer of musculoskeletal
medical products, and

    --  Laureate Education, Inc., a leading international provider of higher
education.

    After taking into account the expected fundings, the Investment
Partnership will have remaining undrawn capital commitments to KKR's
investment funds of $1.4 billion as of March 23, 2007.

    Whether these investments will be consummated depends on the satisfaction
or waiver of a number of conditions, some or all of which may not be in the
control of KPE, the Investment Partnership or KKR. No assurances can be made
as to whether or when, or the actual amounts at which, any of these
investments will be consummated.

    KPE has posted its audited financial statements and the audited
consolidated financial statements of the Investment Partnership, as well as an
annual operating and financial review, to its website (www.kkrpei.com). KPE
encourages investors to carefully read these documents in conjunction with
this news release.

    Adoption of Equity Incentive Plan

    In March 2007, the Board of Directors of KPE's General Partner approved
the KKR Private Equity Investors, L.P. 2007 Equity Incentive Plan (the
"Plan"). The Plan provides for the grant of options, share appreciation rights
(SARs), restricted units and other unit-based awards to eligible directors,
officers, employees (if any) and key service providers. The plan allows for
the issuance of awards with respect to an aggregate of 1,000,000 common units.

    Information for Investors - Teleconference and Webcast

    KPE will discuss its financial results on a teleconference to be
broadcast live on the Internet on Wednesday, March 28, 2007 at 6:30 pm CEST
(Amsterdam) / 5:30 pm BST (Guernsey/London) / 12:30 p.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.kkrpei.com.

    About KPE

    KKR Private Equity Investors, L.P. (KPE) is a Guernsey limited
partnership that seeks to create long-term value by participating in private
equity and opportunistic investments identified by Kohlberg Kravis Roberts &
Co. (KKR). Formed in April 2006, KPE enables certain public market investors
to invest in KKR-identified investments. KPE will invest at least 75% of its
assets in KKR's private equity investments, while up to 25% of its assets may
be invested opportunistically in other investments identified by KKR. KPE
makes its investments through another Guernsey limited partnership, KKR PEI
Investments, L.P., as its sole limited partner.

    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.kkrpei.com.

    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.

    
                  KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
                           SCHEDULE OF INVESTMENTS
                            (Amounts in millions)
    ----------------------------------------------------------------------

                                    Subsequent
                                     Investment
                                     Activity,
                                      at cost
                                     (Jan. 1,
                      Fair Value as   2007 to     Pending      Remaining
                       of December   Mar. 23,    Transactions   Undrawn
                         31, 2006    2007) (1)       (2)       Commitments
                      ------------- ----------- ------------- ------------

    KKR's private
     equity funds:

       KKR European
        Fund, Limited
        Partnership         $326.9       $(9.2)           $-           $-
       KKR Millennium
        Fund L.P.            178.2        (7.8)            -          3.1
       KKR 2006 Fund
        L.P.                 139.6        14.5         475.0      1,345.9
       KKR European
        Fund II,
        Limited
        Partnership           57.1        14.8             -         26.0
                      ------------- ----------- ------------- ------------
                             701.8        12.3         475.0      1,375.0
                      ------------- ----------- ------------- ------------

    Co-investments:

       TXU Corp.                 -           -         300.0            -
       Dollar General
        Corp.                    -           -         250.0            -
       NXP B.V.              259.9           -             -            -
       HCA Inc.              250.0           -             -            -
       PagesJaunes
        Groupe S.A.              -       235.2             -            -
       The Nielsen
        Company B.V.         200.0           -             -            -
       Biomet, Inc.              -           -         200.0            -
       ProSiebenSat. 1
        Media AG                 -       198.9             -            -
       Capmark
        Financial
        Group Inc.           135.0           -             -            -
       KION Group GmbH       113.2           -             -            -
                      ------------- ----------- ------------- ------------
                             958.1       434.1         750.0            -
                      ------------- ----------- ------------- ------------

    Opportunistic:

       Sun
        Microsystems,
        Inc. -
        convertible
        senior notes
        (3)                      -       350.0             -            -
       Publicly traded
        securities (4)       158.5       370.5             -            -
       KKR Strategic
        Capital
        Institutional
        Fund, Ltd.            83.4        58.3             -         58.4
                      ------------- ----------- ------------- ------------
                             241.9       778.8             -         58.4
                      ------------- ----------- ------------- ------------


                          $1,901.8    $1,225.2      $1,225.0     $1,433.4
                      ------------- ----------- ------------- ------------



     (1) These investment are reflected at their cost basis, net of any
      dispositions and, therefore, do not include any unrealized gains or
      losses and may differ from previously disclosed figures about such
      investments.

     (2) Whether these transactions will be consummated depends on the
      satisfaction or waiver of a number of conditions, some or all of
      which may not be in the control of KPE, the Investment Partnership
      or KKR. No assurances can be made as to whether or when, or the
      actual amounts at which, any of these investments will be
      consummated.

     (3) Net of $350.0 million of financing as of March 23, 2007.

     (4) Net of $226.7 million of financing as of March 23, 2007.
    

    
                      KKR PRIVATE EQUITY INVESTORS, L.P.
               CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
                            (Amounts in thousands)
    ----------------------------------------------------------------------

                                                             December 31,
                                                                  2006
                                                             -------------
    ASSETS:
     Investments in limited partner interests, at fair
      value:
        KKR PEI Investments, L.P. - Class A (cost of
         $3,192,251)                                           $3,321,084
        KKR PEI Investments, L.P. - Class B (cost of
         $948,180)                                                950,384
        KKR PEI Investments, L.P. - Class C (cost of
         $627,924)                                                700,367
        KKR PEI Investments, L.P. - Class D (cost of
         $58,213)                                                  64,110
                                                             -------------
                                                                5,035,945


    Cash and cash equivalents                                       1,116
    Prepaid expenses                                                  111
                                                             -------------

          Total assets                                          5,037,172
                                                             -------------

    LIABILITIES:
     Accrued liabilities                                            1,209
     Due to affiliate                                                 364
                                                             -------------
         Total liabilities                                          1,573
                                                             -------------



    NET ASSETS                                                 $5,035,599
                                                             -------------

    NET ASSETS CONSIST OF:
     Partners' capital (204,550,001 common units
      outstanding), net                                        $4,830,110
     Distributable earnings                                       205,489
                                                             -------------

                                                               $5,035,599
                                                             -------------

    Net asset value per common unit                                $24.62
                                                             -------------

    Market price at December 31, 2006                              $22.85
                                                             -------------
    

    
                      KKR PRIVATE EQUITY INVESTORS, L.P.
                     CONSOLIDATED STATEMENT OF OPERATIONS
                            (Amounts in thousands)
    ----------------------------------------------------------------------

                                                          From April 18,
                                                           2006 (Date of
                                        Quarter Ended      Formation) to
                                      December 31, 2006  December 31, 2006
                                     ------------------- -----------------

    NET INVESTMENT INCOME ALLOCATED
     FROM KKR PEI INVESTMENTS, L.P.:
      Investment income                         $50,422          $143,220
      Expenses                                    7,494            12,853
                                     ------------------- -----------------
                                                 42,928           130,367

    INVESTMENT INCOME--Interest
     income                                          32               212

    EXPENSES--General and
     administrative expenses                      1,464             4,100
                                     ------------------- -----------------

    NET INVESTMENT INCOME                        41,496           126,479
                                     ------------------- -----------------

    REALIZED AND UNREALIZED GAINS
     FROM INVESTMENTS AND FOREIGN
     CURRENCY ALLOCATED FROM KKR PEI
     INVESTMENTS, L.P:
      Net realized gain                          35,541            34,547
      Net change in unrealized
       appreciation                              37,971            83,327
                                     ------------------- -----------------

      Net gain on investments and
       foreign currency transactions             73,512           117,874
                                     ------------------- -----------------



    NET INCREASE IN NET ASSETS
     RESULTING FROM OPERATIONS                 $115,008          $244,353
                                     ------------------- -----------------
    

    
                  KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
               CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
                            (Amounts in thousands)
    ----------------------------------------------------------------------

                                                            December 31,
                                                                 2006
                                                            --------------
    ASSETS:
    Investments, at fair value:
      Opportunistic investments--Class A (cost of $154,474)      $158,462
      Co-investments in portfolio companies of private
       equity funds--Class B (cost of $950,145)                   958,065
      Private equity funds--Class C (cost of $630,508)            701,818
      Non-private equity funds--Investment by KKR Strategic
       Capital Institutional Fund, Ltd.--Class D (cost of
       $77,472)                                                    83,466
                                                            --------------
                                                                1,901,811


    Cash and cash equivalents                                   2,139,621
    Time deposit                                                1,000,000
    Other assets                                                   36,002
                                                            --------------
        Total assets                                            5,077,434
                                                            --------------

    LIABILITIES:
      Accrued liabilities                                           1,503
      Due to affiliates                                             5,722
      Unrealized loss on foreign currency exchange
       contracts                                                    5,712
      Other liabilities                                            18,098
                                                            --------------
        Total liabilities                                          31,035
                                                            --------------

    NET ASSETS                                                 $5,046,399
                                                            --------------

    NET ASSETS CONSIST OF:
      Partners' capital contributions                          $4,836,568
      Distributable earnings                                      209,831
                                                            --------------

                                                               $5,046,399
                                                            --------------
    

    
                  KKR PEI INVESTMENTS, L.P. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF OPERATIONS
                            (Amounts in thousands)
    ----------------------------------------------------------------------

                                                            From April 18,
                                                             2006 (Date of
                                            Quarter Ended   Formation) to
                                             December 31,   December 31,
                                                 2006            2006
                                          ----------------- --------------

    INVESTMENT INCOME:
    Interest income                                $50,379       $143,370
    Dividend income, net of withholding
     taxes of $63                                      146            146
                                          ----------------- --------------
        Total investment income                     50,525        143,516
                                          ----------------- --------------

    EXPENSES:
      Management fees                                5,479          9,874
      Incentive fees                                 1,044          1,044
      General and administrative expenses              976          1,941
                                          ----------------- --------------
        Total expenses                               7,499         12,859
                                          ----------------- --------------

    NET INVESTMENT INCOME                           43,026        130,657
                                          ----------------- --------------

    REALIZED AND UNREALIZED GAINS FROM
     INVESTMENTS AND FOREIGN CURRENCY:
    Net realized gain                               35,614         34,619
    Net change in unrealized appreciation           38,051         83,500
                                          ----------------- --------------

      Net gain on investments and foreign
       currency transactions                        73,665        118,119
                                          ----------------- --------------

    NET INCREASE IN NET ASSETS RESULTING
     FROM OPERATIONS                              $116,691       $248,776
                                          ----------------- --------------
    




For further information:

For further information: Investor Contact: Integrated Corporate
Relations Andrew Greenebaum / Anne Rakunas +1-310-954-1100 or Media Contacts:
In the U.S.: Kekst and Company Mark Semer, +1-212-521-4800 or In Europe:
Finsbury Simon Moyse, +44-207-251-3801

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KKR PRIVATE EQUITY INVESTORS, L.P.

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