KKR Private Equity Investors Reports Results for Quarter Ended September 30, 2007



    NAV per Unit of $25.77 as of September 30, 2007

    Last Twelve Months' Return of 8.0% through the Third Quarter of 2007

    GUERNSEY, CHANNEL ISLANDS, November 7 /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 quarterly period ended September 30, 2007. As of September 30, 2007,
KPE's net asset value ("NAV") was $5,272.2 million, or $25.77 per unit. KPE's
last twelve months' rate of return through the third quarter of 2007 was 8.0%.

    Henry R. Kravis, Co-Founder of KKR and Co-Chairman of KPE's Managing
Partner's Board of Directors, commented, "KPE is now fully invested and
positioned to benefit from its strong portfolio of investments. We remain
focused on growing the businesses that comprise KPE's private equity fund
portfolio investments, and have every reason to believe that the flexible
capital structures of our businesses and the operational improvements
initiated by KKR will be profitable to KPE over the long term."

    George R. Roberts, Co-Founder of KKR and Co-Chairman of KPE's Managing
Partner's Board of Directors, added, "We are beginning to see signals of
vibrancy in the credit markets despite the volatility that was characteristic
of the summer and early fall. We closed several large transactions during the
third quarter and we remain focused on growing our investments as well as
identifying additional buyout opportunities that will create long term value
for our unitholders."

    Results of Operations

    Operating results of KPE for the quarter ended September 30, 2007 are
highlighted as follows:

    
    -- Net realized gain on investments was $104.8 million, which
     primarily resulted from gains from portfolio companies of $68.7
     million as a result of the sale of SBS Broadcasting S.A. and the
     recapitalization of Maxeda, and gains of $34.8 million from the sale
     of opportunistic investments in public equities and related
     derivative transactions;

    -- Net unrealized depreciation on investments and foreign currency
     transactions was $119.7 million, chiefly consisting of $116.9 million
     relating to reversals of net unrealized appreciation on the sale and
     recapitalization of investments as described above, and due to
     changes in the unrealized fair value of investments from the second
     to third quarter of 2007, principally:

        -- An increase of $61.7 million in the value of HCA Inc., which
         was valued at 1.2 times original cost as of September 30, 2007
         compared to 1.0 times as of June 30, 2007, principally due to the
         company's improved operating performance;

        -- A decrease of $34.2 million in the value of PagesJaunes Groupe
         S.A., principally due to fluctuations in the market trading price
         of the securities, offset by an unrealized gain on foreign
         currency;

        -- Net appreciation of $4.1 million in the value of negotiated
         equity investments in Sun Microsystems, Inc. and Orient
         Corporation, principally due to the variation in the market
         prices of the underlying reference assets.

    -- Net investment loss was $6.4 million, which principally represented
     management fees, interest and operating expenses, offset by interest
     and dividend income; and

    -- The resulting net decrease in net assets resulting from operations
     was $21.2 million and KPE's total return was (1.7) percent on an
     annualized basis.
    

    Operating results of KPE for the nine months ended September 30, 2007 are
highlighted as follows:


    
    -- Net realized gain on investments was $121.4 million and resulted
     primarily from the sale of four portfolio companies, which included
     SBS Broadcasting S.A., Demag Holding S.a r.l., KSL Recreation
     Holdings I LLC - La Costa Resort and Spa and ITC Holdings Corp. and
     the recapitalization of Maxeda which totaled $81.2 million, and the
     sale of $37.0 million of opportunistic investments in public equities
     and derivatives;

    -- Net unrealized appreciation on investments and foreign currency
     transactions was $123.0 million, primarily due to changes in the fair
     value of investments during the nine months ended September 30, 2007
     and the reversal of previously recorded net unrealized appreciation
     of $34.6 million primarily related to the sale of investments in
     private equity funds. The changes in fair value from December 31,
     2006 to September 30, 2007 were principally:

        -- An increase of $67.4 million in the value of the Capmark
         investment, which was marked from 1.0 times original cost to 1.5
         times at the close of the second quarter ended June 30, 2007,
         primarily as a result of improved operating performance, due in
         part to a decrease in non-interest expense;

        -- An increase of $61.7 million in the value of HCA, Inc.; and

        -- An increase of $12.9 million in the value of PagesJaunes Group
         S.A., principally as a result of an unrealized gain on foreign
         currency and, to a lesser degree, fluctuations in the market
         trading price of the securities.

        -- Net depreciation of $23.6 million in the value of negotiated
         equity investments in Sun Mircosystems and Orient Corporation.

    -- Net investment income was $41.2 million, which primarily
     represented interest and dividend income, reduced by management fees,
     interest expense and other operating expenses; and

    -- The resulting net increase in net assets resulting from operations
     was $285.7 million, and KPE's total return was 7.6 percent on an
     annualized basis.
    

    Investments

    KPE invests its capital as the sole limited partner of KKR PEI
Investments, L.P. (the "Investment Partnership"). As of November 2, 2007, the
Investment Partnership's investments totaled $6,052.8 million. The $6,052.8
million of investments was comprised of: $5,395.7 million of investments at
September 30, 2007 at fair value, net of related financing; and $657.1 million
of subsequent investment activity, net and at cost.

    As of September 30, 2007, the Investment Partnership's portfolio of
private equity and opportunistic investments, net of related financing, with a
fair value of $5,395.7 million, was comprised of the following:

    
    -- Investments of $1,688.5 million through KKR's private equity funds:

        -- $1,061.4 million in KKR 2006 Fund L.P.,

        -- $263.9 million in KKR European Fund, Limited Partnership,

        -- $254.7 million in KKR Millennium Fund L.P.,

        -- $85.1 million in KKR European Fund II, Limited Partnership, and

        -- $23.4 million in KKR Asian Fund, Limited Partnership.

    -- Co-investments of $2,634.8 million in the following portfolio
     companies of KKR's private equity funds:

        -- Alliance Boots plc.

        -- Biomet, Inc.

        -- Capmark Financial Group, Inc.

        -- Dollar General Corp.

        -- First Data Corp.

        -- HCA Inc.

        -- KION Group GmbH

        -- The Nielsen Company, B.V.

        -- NXP B.V.

        -- PagesJaunes Groupe S.A.

        -- ProSiebenSat. 1 Media AG

        -- U.S. Foodservice, Inc.

    -- Negotiated equity investments of $500.8 million, net of related
     financing:

        -- $370.1 million (net of long-term financing of $350.0 million)
         of convertible senior notes of Sun Microsystems, Inc., a leading
         technology company, and

        -- $130.7 million of convertible preferred stock of Orient
         Corporation, one of the largest consumer credit companies in
         Japan.

    -- Opportunistic investments of $384.5 million:

        -- $250.5 million of publicly traded securities and related
         derivative transactions, and

        -- $134.0 million of a fixed income investment.

    -- Non-private equity fund investment of $187.1 million in KKR
     Strategic Capital Institutional Fund, Ltd., a KKR-sponsored
     opportunistic credit fund.
    

    Subsequent to September 30, 2007 and through November 2, 2007, the
Investment Partnership's investing activity, which totaled $657.1 million, was
as follows:

    
    -- Capital contributions of $211.6 million with respect to limited
     partner interests in KKR's private equity funds, net of returns of
     capital in the amount of $21.9 million.

    -- Co-investments and negotiated equity investments totaling $322.3
     million in the following companies:

        -- $200.0 million in Energy Future Holdings Corp. (formerly TXU
         Corp.), a Dallas-based energy company, and

        -- $122.3 million in Aero Technical Support & Services S.a r.l.
         (formerly referred to as ACTS LP), a Canadian aircraft
         maintenance, repair and overhaul company.

    -- Net purchases of opportunistic investments valued at $123.2 million
     as of September 30, 2007, which were comprised of publicly traded
     securities and related derivative transactions.
    

    After taking into account the subsequent investment activity described
above, the Investment Partnership as of November 2, 2007 will have remaining
undrawn capital commitments to KKR's private equity funds of approximately
$997.7 million.

    Whether these commitments 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
commitments will be consummated.

    Liquidity and Capital Resources

    As of November 2, 2007, the Investment Partnership had a pro forma cash
balance of $303.8 million representing the cash balance as of September 30,
2007 minus the subsequent net investment activity of $657.1 million that
occurred from October 1, 2007 to November 2, 2007 at cost. The Investment
Partnership has drawn on the full current availability of its senior secured
credit facility established on June 11, 2007 in the amount of $1.0 billion.

    The Investment Partnership believes its sources of liquidity are
currently sufficient to honor the Investment Partnership's commitments as and
when they become due. In addition to the current cash balance, the Investment
Partnership has the ability to generate liquidity with a $1.0 billion
accordion to its senior secured credit facility, subject to customary
approvals, the leverage of certain public equity securities and the disposal
of certain liquid investments, among others.

    Interim Financial Report

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

    Information for Investors - Teleconference and Webcast

    KPE will discuss its financial results on a teleconference to be
broadcast live on the Internet on Wednesday, November 7, 2007, at 7:30 pm
(Amsterdam) / 6:30 pm (Guernsey/London) / 1:30 p.m. (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 invests at least 75 percent of
its assets in KKR's private equity investments, while up to 25 percent 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.

    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.

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

                                                               Total Fair
                                                 Subsequent     Value and
                                                     Net        Subsequent
                                                  Investment       Net
                                                  Activity      Investment
                                    Fair Value    (1) (Oct      Activity
                                      as of       1, 2007 to      as of
                                     September     Nov 2,       November
                                     30, 2007       2007)        2, 2007
                                    ----------  ------------  ------------

    KKR's private equity funds (2):

         KKR 2006 Fund L.P.        $   1,061.4  $     211.8   $    1,273.2
         KKR European Fund, Limited
          Partnership                    263.9            -          263.9
         KKR Millennium Fund L.P.        254.7            -          254.7
         KKR European Fund II,
          Limited Partnership             85.1         (0.2)          84.9
         KKR Asian Fund L.P.              23.4            -           23.4
                                    ----------   -----------   -----------
                                       1,688.5        211.6        1,900.1
                                    ----------   -----------   -----------

    Co-investments:

         Alliance Boots plc              307.1            -          307.1
         HCA Inc.                        300.0            -          300.0
         NXP B.V.                        280.9            -          280.9
         PagesJaunes Groupe S.A.         257.9            -          257.9
         Dollar General Corp.            250.0            -          250.0
         ProSiebenSat.1 Media AG         214.0            -          214.0
         Capmark Financial Group
          Inc.                           202.5            -          202.5
         Biomet, Inc.                    200.0            -          200.0
         First Data Corp.                200.0            -          200.0
         The Nielsen Company B.V.        200.0            -          200.0
         KION Group GmbH                 122.4            -          122.4
         U.S. Foodservice, Inc.          100.0            -          100.0
         Energy Future Holdings
          Corp. (TXU Corp.)                  -        200.0          200.0
                                    ----------   -----------   -----------
                                       2,634.8        200.0        2,834.8
                                    ----------   -----------   -----------

    Negotiated equity investments:

         Sun Microsystems, Inc. (3)      370.1            -          370.1
         Orient Corporation              130.7            -          130.7
         Aero Technical Support &
          Services S.a.r.l.                  -        122.3          122.3
                                    ----------   -----------   -----------
                                         500.8        122.3          623.1
                                    ----------   -----------   -----------

    Opportunistic:


         Publicly traded securities
          (4)                            250.5        123.2          373.7
         KKR Strategic Capital
          Institutional Fund, Ltd.       187.1            -          187.1
         Fixed income investment         134.0            -          134.0
                                    ----------   -----------   -----------
                                         571.6        123.2          694.8
                                    ----------   -----------   -----------


                                   $   5,395.7  $     657.1   $    6,052.8
                                    ----------   -----------   -----------


     (1) Subsequent purchases are reflected at cost, while sales are
          reflected at the fair value amount of the related investment as
          of September 30, 2007.

     (2) Remaining undrawn commitments to KKR private equity funds include
          the following:

         KKR 2006 Fund L.P.        $     710.7
         KKR Asian Fund L.P.             261.6
         KKR European Fund II,
          Limited Partnership             20.3
         KKR Millennium Fund L.P.          5.1
                                    ----------
                                   $     997.7
                                    ----------

     (3) Reflected net of $350 million of long-term financing.

     (4) Includes the fair value of derivative transactions with an
          aggregate notional amount of $181 million as of September 30,
          2007. Subsequent to September 30, 2007, additional net
          derivative transactions were unwound with an aggregate notional
          amount of $67.3 million.
    

    
                      KKR PRIVATE EQUITY INVESTORS, L.P.
         CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
           (Amounts in thousands, except unit and per unit amounts)
    ----------------------------------------------------------------------

                                                        September 30, 2007
                                                        ------------------
    ASSETS:
      Investments in limited partner interests, at fair
       value:
        KKR PEI Investments, L.P. - Class A, at fair
         value (cost of $203,658)                      $           331,877
        KKR PEI Investments, L.P. - Class B, at fair
         value (cost of $2,939,089)                              3,069,551
        KKR PEI Investments, L.P. - Class C, at fair
         value (cost of $1,509,186)                              1,684,988
        KKR PEI Investments, L.P. - Class D, at fair
         value (cost of $174,635)                                  185,438
                                                        ------------------
                                                                 5,271,854

      Cash and cash equivalents                                      1,829
      Prepaid expenses                                                 225
                                                        ------------------
         Total assets                                            5,273,908
                                                        ------------------

    LIABILITIES:
      Accrued liabilities                                            1,482
      Due to affiliate                                                 241
                                                        ------------------
         Total liabilities                                           1,723
                                                        ------------------

    NET ASSETS                                         $         5,272,185
                                                        ------------------

    NET ASSETS CONSIST OF:
      Partners' capital (204,550,001 common units
       outstanding), net                               $         4,830,110
      Distributable earnings                                       442,075
                                                        ------------------

                                                       $         5,272,185
                                                        ------------------

    Net asset value per common unit                    $             25.77
                                                        ------------------

    Market price per common unit at September 30, 2007 $             19.50
                                                        ------------------
    

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

                                     Quarter Ended      Nine Months Ended
                                   September 30, 2007   September 30, 2007
                                   ------------------  -------------------

    NET INVESTMENT INCOME (LOSS)
     ALLOCATED FROM KKR PEI
     INVESTMENTS, L.P.:
            Investment income     $           26,582   $           109,764
            Expenses                          31,472                64,210
                                   ------------------   ------------------
                                              (4,890)               45,554

    INVESTMENT INCOME--Interest
     income                                       28                    56

    EXPENSES--General and
     administrative expenses                   1,507                 4,369
                                   ------------------   ------------------

    NET INVESTMENT INCOME (LOSS)              (6,369)               41,241
                                   ------------------   ------------------

    REALIZED AND UNREALIZED GAIN
     (LOSS) FROM INVESTMENTS AND
     FOREIGN CURRENCY ALLOCATED
     FROM KKR PEI INVESTMENTS,
     L.P:
            Net realized gain                104,814               121,418
            Net change in
             unrealized
             appreciation
             (depreciation)                 (119,665)              123,019
                                   ------------------   ------------------

            Net gain (loss) on
             investments and
             foreign currency
             transactions                    (14,851)              244,437
                                   ------------------   ------------------

    NET INCREASE (DECREASE) IN NET
     ASSETS RESULTING FROM
     OPERATIONS                   $          (21,220)  $           285,678
                                   ------------------   ------------------
    

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

                                                        September 30, 2007
                                                        ------------------
    ASSETS:
      Investments, at fair value:
         Opportunistic investments--Class A (cost of
          $398,899)                                    $           384,550
         Co-investments in portfolio companies of
          private equity funds--Class B (cost of
          $2,435,583)                                            2,634,799
         Negotiated equity investments--Class B (cost
          of $870,870)                                             850,787
         Private equity funds--Class C (cost of
          $1,600,563)                                            1,688,486
         Investment by KKR Strategic Capital
          Institutional Fund, Ltd.--Class D (cost of
          $188,114)                                                187,102
                                                        ------------------
                                                                 5,745,724

      Cash and cash equivalents                                    960,924
      Restricted cash                                               18,558
      Other assets                                                   8,010
                                                        ------------------
            Total assets                                         6,733,216
                                                        ------------------

    LIABILITIES:
      Accrued liabilities                                           27,475
      Due to affiliates                                             11,334
      Options written (proceeds of $10,101)                          5,444
      Unrealized loss on foreign currency exchange
       contracts, net                                               45,434
      Other liabilities                                                115
      Revolving credit agreement                                 1,010,545
      Long-term debt                                               350,000
                                                        ------------------
            Total liabilities                                    1,450,347
                                                        ------------------

    NET ASSETS                                         $         5,282,869
                                                        ------------------

    NET ASSETS CONSIST OF:
      Partners' capital contributions                  $         4,836,568
      Distributable earnings                                       446,301
                                                        ------------------

                                                       $         5,282,869
                                                        ------------------
    

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

                                     Quarter Ended      Nine Months Ended
                                   September 30, 2007   September 30, 2007
                                   ------------------  -------------------

    INVESTMENT INCOME:
         Interest income          $           23,560                86,783
         Dividend income, net of
          withholding taxes of
          $320 and $1,085
          respectively                         3,078                23,209
                                   ------------------   ------------------
            Total investment
             income                           26,638               109,992
                                   ------------------   ------------------

    EXPENSES:
      Interest expense                        16,057                25,663
       Management fees                        15,093                34,550
       Incentive fees                           (850)                  926
       General and administrative
        expenses                               1,208                 3,134
                                   ------------------   ------------------
            Total expenses                    31,508                64,273
                                   ------------------   ------------------

    NET INVESTMENT INCOME (LOSS)              (4,870)               45,719
                                   ------------------   ------------------

    REALIZED AND UNREALIZED GAIN
     (LOSS) FROM INVESTMENTS AND
     FOREIGN CURRENCY:
            Net realized gain                105,033               121,671
            Net change in
             unrealized
             appreciation
             (depreciation)                 (119,914)              123,274
                                   ------------------   ------------------

       Net gain (loss) on
        investments and foreign
        currency transactions                (14,881)              244,945
                                   ------------------   ------------------

    NET INCREASE (DECREASE) IN NET
     ASSETS RESULTING FROM
     OPERATIONS                   $          (19,751)  $           290,664
                                   ------------------   ------------------
    




For further information:

For further information: Investor Contact: KKR KPE LLC Katherine Becher,
Investor Relations Manager +1.212.659.2026 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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