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



    NAV of $26.12 as of June 30, 2007 Annualized Return of 11.6% for the
Second Quarter of 2007

    GUERNSEY, CHANNEL ISLANDS, August 15 /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 June 30, 2007. As of June 30, 2007, KPE's net
asset value ("NAV") was $5,342.5 million, or $26.12 per unit. On an annualized
basis, KPE's return for the quarter and six months ended June 30, 2007 was
11.6 percent and 12.3 percent, respectively.

    Henry R. Kravis, Co-Founder of KKR and Co-Chairman of KPE's Managing
Partner's Board of Directors, commented, "We are pleased to report that we
continue to meet the goals we stated to investors at the time of KPE's initial
offering in May 2006. KPE has now fully deployed its capital and made further
commitments to new investments as well. Additionally, the strong growth in net
asset value reflects positive increases in valuation due to strong performance
of the underlying portfolio companies."

    George R. Roberts, Co-Founder of KKR and Co-Chairman of KPE's Managing
Partner's Board of Directors, added, "Despite the current volatility in the
credit and equity markets, corporate credit fundamentals are good and the
overall economy is healthy. We will continue to use our financial, operational
and strategic resources and experience, combined with our global industry
expertise, to identify investment opportunities that have the potential to
create long-term value for our unitholders."

    Results of Operations

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

    --  Net unrealized gain on investments and foreign currency transactions
was $122.3 million due to net appreciation in the value of certain KKR
portfolio companies and opportunistic investments offset by net depreciation
in the value of negotiated equity investments;

    --  Net realized gain on investments was $5.1 million and primarily
resulted from the sale of certain KKR portfolio companies;

    --  Net investment income was $22.5 million, which represented interest
income from cash management activities and dividend income, reduced by
operating expenses; and

    --  The resulting net increase in net assets resulting from operations
was $150.0 million and KPE's total return was 11.6 percent on an annualized
basis.

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

    --  Net unrealized gain on investments and foreign currency transactions
was $242.7 million due to net appreciation in the value of certain KKR
portfolio companies and opportunistic investments offset by net depreciation
in the value of negotiated equity investments;

    --  Net realized gain on investments was $16.6 million and resulted
primarily from the sale of certain KKR portfolio companies and opportunistic
investments;

    --  Net investment income was $47.6 million, which represented interest
income from cash management activities and dividend income, reduced by
operating expenses;

    --  The resulting net increase in net assets resulting from operations
was $306.9 million and KPE's total return was 12.3 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 August 10, 2007, the
Investment Partnership's investments and anticipated fundings for announced
transactions totaled $6,190.4 million. The $6,190.4 million of investments was
comprised of: $3,919.6 million of investments at June 30, 2007 at fair value
and net of related financing; $908.2 million of subsequent investment
activity, net; and $1,362.6 million of anticipated fundings.

    As of June 30, 2007, the Investment Partnership held $1,435.2 million of
temporary and other investments and a portfolio of private equity and
opportunistic investments, net of related financing, with a fair value of
$3,919.6 million as follows:

    
    -- Investments of $933.5 million through KKR's private equity funds:
        -- $386.6 million in KKR European Fund, Limited Partnership,
        -- $274.9 million in KKR Millennium Fund L.P.,
        -- $195.1 million in KKR 2006 Fund L.P., and
        -- $76.9 million in KKR European Fund II, Limited Partnership.

    -- Co-investments of $1,578.3 million in the following portfolio
        companies of KKR's private equity funds:
        -- Alliance Boots plc.
        -- Capmark Financial Group, Inc.
        -- HCA Inc.
        -- KION Group GmbH
        -- The Nielsen Company, B.V.
        -- NXP B.V.
        -- PagesJaunes Groupe S.A.
        -- ProSiebenSat. 1 Media AG

    -- Negotiated equity investments of $493.0 million:
        -- $317.2 million (net of long-term financing of $350.0 million)
            in convertible senior notes of Sun Microsystems, Inc., a
            leading technology company, and
        -- $175.8 million of convertible preferred stock of Orient
            Corporation, one of the largest consumer credit companies in
            Japan.

    -- Opportunistic investments of $914.8 million:
        -- $583.6 million of publicly traded securities and related
            derivative transactions,
        -- $193.1 million in KKR Strategic Capital Institutional Fund,
            Ltd., a KKR-sponsored opportunistic credit fund, and
        -- $138.1 million of a fixed income investment.

    Subsequent to June 30, 2007 and through August 10, 2007, the
    Investment Partnership's investing activity, which totaled $908.2
    million, was as follows:

    -- Capital contributions - $1,430.1 million of capital contributions
        with respect to limited partner interests in certain KKR private
        equity funds, as well as co-investments in the following portfolio
        companies:
        -- Alliance Boots plc, a leading European pharmacy-led health and
            beauty group,
        -- Biomet, Inc., a leading designer and manufacturer of
            musculoskeletal medical products,
        -- Dollar General Corp., a Fortune 500 (R) discount retailer, and
        -- U.S. Foodservice, Inc., the second largest broadline
            foodservice distributor in the United States.

    -- Dispositions - Certain portfolio company and opportunistic
        investments valued at $521.9 million as of June 30, 2007 were
        sold. In addition, net derivative transactions were unwound with
        an aggregate notional amount of $158.5 million.

    As of August 10, 2007, the Investment Partnership expects to fund an
    aggregate of $1,362.6 million of additional private equity capital,
    consisting of the following:

    -- KKR's private equity funds and co-investments - $1,250.0 million of
        capital contributions with respect to limited partner interests in
        KKR's private equity funds, including related co-investments in:
        -- First Data Corp., the leading provider of electronic commerce
            and payment solutions for businesses worldwide,
        -- Harman International Industries, Incorporated, a leading
            manufacturer of high-quality, high fidelity audio products and
            electronic systems for the automotive, consumer and
            professional markets, and
        -- TXU Corp., a Dallas-based energy company.

    -- Negotiated equity investment - $112.6 million in ACTS LP, a
        full-service aircraft maintenance, repair and overhaul
        organization.
    

    After taking into account the subsequent investment activity and pending
transactions described above, the Investment Partnership will have remaining
undrawn capital commitments to KKR's investment funds of approximately $962.9
million as of August 10, 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.

    Senior Secured Credit Facility

    On June 11, 2007, the Investment Partnership established a senior secured
credit facility with certain lenders for the purpose of providing an
additional source of liquidity. The credit facility has a 5-year term and an
initial availability of up to $1.0 billion. KPE has an option to seek up to an
additional $1 billion under the terms of the agreement.

    Distribution

    KPE has declared a distribution of $0.24 per unit payable on or about
September 17, 2007 to unitholders of record as of the close of business on
August 31, 2007. Because the distribution was declared subsequent to June 30,
2007, the aggregate distribution payable of $49.1 million is not reflected in
KPE's net asset value as of June 30, 2007.

    In anticipation of this and future KPE distributions, KPE's depositary
bank, Bank of New York, is expected to offer a direct deposit service to
qualifying RDU holders. Information regarding how to enroll in the program and
the required documentation can be found in the Investor Relations section of
KPE's website at www.kkrpei.com.

    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, August 15, 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 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)
    ----------------------------------------------------------------------

                                      Subsequent
                                          Net
                              Fair     Investment
                              Value    Activity(1)
                              as of     (July 1,
                              June      2007 to     Pending    Remaining
                               30,     August 10,    Trans-     Undrawn
                               2007       2007)    actions(2)  Commitments
                             ------- -------------------------------------

    KKR's private equity
     funds:

        KKR European Fund,
         Limited
         Partnership        $  386.6 $     (108.6)$         -$           -
        KKR Millennium Fund
         L.P.                  274.9        (14.7)          -          4.3
        KKR 2006 Fund L.P.     195.1        582.4       500.0        697.6
        KKR European Fund II,
         Limited Partnership    76.9         10.7           -         17.9
        KKR Asian Fund L.P.        -         41.9           -        243.1
                             -------  ------------ ---------- ------------
                               933.5        511.7       500.0        962.9
                             -------  ------------ ---------- ------------

    Co-investments:

        PagesJaunes Groupe
         S.A.                  283.1            -           -            -
        NXP B.V.               266.6            -           -            -
        HCA Inc.               250.0            -           -            -
        ProSiebenSat.1
         Media AG              203.1            -           -            -
        Capmark Financial
         Group Inc.            202.5            -           -            -
        The Nielsen Company
         B.V.                  200.0            -           -            -
        KION Group GmbH        116.1            -           -            -
        Alliance Boots plc      56.9        244.8           -            -
        Dollar General
         Corp.                     -        250.0           -            -
        Biomet, Inc.               -        200.0           -            -
        U.S. Foodservice,
         Inc.                      -        100.0           -
        TXU Corp.                  -            -       300.0            -
        First Data Corp.           -            -       300.0            -
        Harman International
         Industries,
         Incorporated              -            -       150.0            -
                             -------  ------------ ---------- ------------
                             1,578.3        794.8       750.0            -
                             -------  ------------ ---------- ------------

    Negotiated equity
     investments:

        Sun Microsystems,
         Inc.(3)               317.2            -           -            -
        Orient Corporation     175.8            -           -            -
        ACTS LP                    -            -       112.6            -
                             -------  ------------ ---------- ------------
                               493.0            -       112.6            -
                             -------  ------------ ---------- ------------

    Opportunistic:


        Publicly traded
         securities(4)         583.6       (398.3)          -            -
        KKR Strategic Capital
         Institutional Fund,
         Ltd.                  193.1            -           -            -
        Fixed income
         investment            138.1            -           -            -
                             -------  ------------ ---------- ------------
                               914.8       (398.3)          -            -
                             -------  ------------ ---------- ------------


                            $3,919.6 $      908.2 $   1,362.6$       962.9
                             -------  ------------ ---------- ------------



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

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

     (4)Includes the fair value of derivative transactions with an
         aggregate notional amount of $309.4 million as of June 30, 2007.
         Subsequent to June 30, 2007, additional net derivative
         transactions were unwound with an aggregate notional amount of
         $158.5 million.
    

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

                                                             June 30, 2007
                                                             -------------
    ASSETS:
    Investments in limited partner interests, at fair value:
        KKR PEI Investments, L.P. - Class A, at fair value
         (cost of $1,959,754)                               $    2,176,848
        KKR PEI Investments, L.P. - Class B, at fair value
         (cost of $1,994,470)                                    2,044,692
        KKR PEI Investments, L.P. - Class C, at fair value
         (cost of $747,709)                                        931,569
        KKR PEI Investments, L.P. - Class D, at fair value
         (cost of $174,635)                                        190,572
                                                             -------------
                                                                 5,343,681

    Cash and cash equivalents                                          359
    Prepaid expenses                                                   309
                                                             -------------
    Total assets                                                 5,344,349
                                                             -------------

    LIABILITIES:
    Accrued liabilities                                              1,456
    Due to affiliate                                                   396
                                                             -------------
    Total liabilities                                                1,852
                                                             -------------

    NET ASSETS                                              $    5,342,497
                                                             -------------

    NET ASSETS CONSIST OF:
    Partners' capital (204,550,001 common units
     outstanding), net                                      $    4,830,110
    Distributable earnings                                         512,387
                                                             -------------

                                                            $    5,342,497
                                                             -------------

    Net asset value per common unit                         $        26.12
                                                             -------------

    Market price per common unit at June 30, 2007           $        22.50
                                                             -------------
    

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

                                                              Six Months
                                               Quarter Ended   Ended June
                                                June 30, 2007   30, 2007
                                               -------------- ------------

    NET INVESTMENT INCOME ALLOCATED FROM
    KKR PEI INVESTMENTS, L.P.:
            Investment income                 $      44,130 $       83,182
            Expenses                                 20,109         32,738
                                               ------------   ------------
                                                     24,021         50,444

    INVESTMENT INCOME--Interest income                   19             28

    EXPENSES--General and administrative
     expenses                                         1,496          2,862
                                               ------------   ------------

    NET INVESTMENT INCOME                            22,544         47,610
                                               ------------   ------------

    REALIZED AND UNREALIZED GAINS FROM INVESTMENTS AND FOREIGN
           CURRENCY ALLOCATED FROM KKR PEI INVESTMENTS, L.P:
            Net realized gain                         5,094         16,604
            Net change in unrealized
             appreciation                           122,327        242,684
                                               ------------   ------------

            Net gain on investments and foreign
             currency transactions                  127,421        259,288
                                               ------------   ------------



    NET INCREASE IN NET ASSETS RESULTING FROM
     OPERATIONS                               $     149,965 $      306,898
                                               ------------   ------------
    

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

                                                             June 30, 2007
                                                             -------------
    ASSETS:
    Investments, at fair value:
    Opportunistic investments--Class A (cost of $668,229)   $      721,703
    Co-investments in portfolio companies of private equity
     funds--Class B (cost of $1,440,784)                         1,578,322
    Negotiated equity investments--Class B (cost of $870,870)      842,946
    Private equity funds--Class C (cost of $767,012)               933,503
    Investment by KKR Strategic Capital Institutional Fund,
     Ltd.--Class D (cost of $181,280)                              193,107

                                                             -------------
                                                                 4,269,581

    Cash and cash equivalents                                    1,090,912
    Time deposit                                                   350,000
    Other assets                                                    17,721
    Restricted cash                                                 12,708
                                                             -------------
            Total assets                                         5,740,922
                                                             -------------

    LIABILITIES:
    Accrued liabilities                                             13,074
    Due to affiliates                                                8,049
    Unrealized loss on foreign currency exchange contracts,
     net                                                            14,941
    Other liabilities                                                   44
    Long-term debt                                                 350,000
                                                             -------------
            Total liabilities                                      386,108
                                                             -------------

    NET ASSETS                                              $    5,354,814
                                                             -------------

    NET ASSETS CONSIST OF:
    Partners' capital contributions                         $    4,836,568
    Distributable earnings                                         518,246
                                                             -------------

                                                            $    5,354,814
                                                             -------------
    

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

                                           Quarter Ended Six Months Ended
                                           June 30, 2007   June 30, 2007
                                           -------------------------------

    INVESTMENT INCOME:
            Interest income               $      27,894 $           63,223
            Dividend income, net of
             withholding taxes of $139 and
             $765, respectively                  16,327             20,131
                                           ------------  -----------------
            Total investment income              44,221             83,354
                                           ------------  -----------------

    EXPENSES:
        Interest expense                          5,711              9,606
    Management fees                              12,319             19,457
    Incentive fees                                  884              1,776
    General and administrative expenses           1,210              1,926
                                           ------------  -----------------
            Total expenses                       20,124             32,765
                                           ------------  -----------------

    NET INVESTMENT INCOME                        24,097             50,589
                                           ------------  -----------------

    REALIZED AND UNREALIZED GAINS FROM INVESTMENTS AND
      FOREIGN CURRENCY:
            Net realized gain, net of
             withholding taxes of $488 and
             $977, respectively                   5,104             16,638
            Net change in unrealized
             appreciation                       122,581            243,188
                                           ------------  -----------------

    Net gain on investments and foreign
     currency transactions                      127,685            259,826
                                           ------------  -----------------

    NET INCREASE IN NET ASSETS RESULTING
     FROM OPERATIONS                      $     151,782 $          310,415
                                           ------------  -----------------
    




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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