KKR & Co. (KKR) 10-K risk factor changes: FY2021 vs FY2020

Our business and the businesses of the companies in which we invest are materially affected by financial markets and economic conditions or events throughout the world, such as interest rates, [added: fiscal and monetary stimulus and withdrawal of stimulus,] availability of credit, inflation rates, economic uncertainty, changes in laws (including laws relating to taxation), trade barriers, commodity prices, currency exchange rates and [removed: controls and] [added: controls,] national and international political circumstances (including wars, terrorist acts or security [removed: operations).][added: operations), and the continued global outbreak of the strain of coronavirus identified as SARS-CoV-2 and its different strains ("COVID-19") in 2021 and 2022.]

[removed: See "Management's Discussion and Analysis] of [removed: Financial Condition and Results of] Operations—Business Environment" for a discussion of recent developments in market and business conditions that may affect our business.

In addition, we may not be able to or may choose not to manage our exposure to these conditions [removed: and/or] [added: or] events.

If not otherwise offset, declines in [removed: the equity,] [added: equity markets (including but not limited to multiple contraction),] debt [removed: and] [added: markets or] commodity markets would likely cause us to write down [removed: our investments and] the [removed: investments] [added: valuations] of our [added: investments held by us or in our] funds.

[removed: Similarly,] [added: For example,] during the global financial crisis in 2008 and 2009, valuations of our private equity funds declined across all geographies, with investments in private equity funds marked down to as low as 67% of original cost and multiples of invested capital reaching as low as 0.5x, 0.6x, 0.7x and 0.8x for the European Fund II, European Fund III, 2006 Fund and Asian Fund, respectively, as of March 31, 2009.

Unfavorable market and economic conditions may reduce opportunities for [added: us and] our funds to make, exit and realize value from [removed: their] [added: our] investments.

Challenging market and economic conditions, including those caused by changes in tax laws and other regulatory restrictions, may make it difficult for us to find suitable investments [removed: for our funds] or secure financing for investments on attractive terms.

Such conditions may also result in reduced opportunities for [added: us and] our funds to exit and realize value from their existing investments and lower-than-expected returns on existing investments.

Although the equity markets are not the only means by which we exit investments, in challenging equity markets, [added: we and] our funds may experience greater difficulty in realizing value from investments.

In addition, when financing is not available or becomes too costly, it is difficult for potential buyers to raise sufficient capital to purchase our [added: and our] funds' investments.

During periods of unfavorable fundraising conditions, fund investors may negotiate for lower fees, different fee sharing arrangements for [added: transaction or other fees, and other concessions.]

Our current funds, including all our [removed: recent] [added: current] private equity funds, have performance hurdles, which require us to generate a specified return on investment prior to our right to receive carried interest.

[removed: Fund investors may also seek to redeploy capital away from] certain of our credit or other non-private equity investment vehicles, which permit redemptions on relatively short notice, in order to meet liquidity needs or invest in other asset classes or with other managers.

During periods of difficult market or economic conditions or slowdowns (which may occur across one or more [removed: industries,] [added: industries as well as various] sectors or geographies), [added: the various] companies or assets in which we have [removed: invested] [added: investments] may experience [added: several issues, including] decreased revenues, [removed: financial losses,] [added: increased costs,] credit rating downgrades, difficulty in obtaining [removed: access to] financing and [removed: increased funding costs.][added: even severe financial losses or insolvency.]

[removed: These] [added: In addition, during periods of difficult market or economic conditions or slowdowns, our and our funds' portfolio] companies may [removed: also] have difficulty in expanding their businesses and operations or [removed: be] [added: become] unable to [removed: meet] [added: pay] their [removed: debt service obligations] [added: expenses] or [removed: pay] other [removed: expenses] [added: obligations] as they become due, including amounts payable to us.

Negative financial results in our [added: and our] funds' portfolio companies may result in lower investment [removed: returns for our investment funds,] [added: returns,] which could materially and adversely affect our operating results and cash flow.

To the extent the operating performance of such portfolio companies (as well as valuation multiples) deteriorate or do not improve, [added: we or] our funds may sell those assets at values that are less than we projected or even at a loss, thereby significantly affecting [removed: those funds'] [added: our respective] performance and consequently our operating results and cash flow and resulting in lower or no carried interest being paid to us.

Adverse conditions may also increase the risk of default with respect to private equity, [added: real assets,] credit and other investments that we manage or the [added: bankruptcy,] abandonment or foreclosure of our [removed: real asset] investments.

In addition, our capital markets business generates fees through a variety of activities in connection with the issuance and placement of equity and debt [removed: securities] [added: securities, loans] and credit facilities, with the size of fees generally correlated to overall transaction sizes.

For [removed: discussions] [added: a discussion] of interest rate risks on our insurance business, see "—Risks Related to Global Atlantic–Interest rate fluctuations and sustained periods of low or high interest rates could adversely affect Global Atlantic’s business, financial condition, liquidity, results of operations, cash flows and prospects."

These measures have included, for example, closures of non-essential businesses, limitations of crowd size, stay-at-home orders, quarantines, heightened border [removed: controls and] [added: controls,] limitations on [removed: travel.][added: travel, and vaccination and testing mandates.]

Governments in the United States and around the world have responded with fiscal and monetary stimuli that aim to provide emergency assistance to individuals and businesses negatively impacted by [removed: COVID-19.][added: COVID-19, which may be withdrawn or allowed to expire.]

The outbreak of COVID-19 and the actions taken in response have had far reaching impact on the U.S. and global economies, [removed: contributing] [added: which has contributed] to significant volatility in the financial markets, resulting in increased volatility in equity prices (including our common [removed: stock) and] [added: stock),] lower interest rates, [removed: and causing furloughs] [added: supply chain disruptions,] and [removed: layoffs] [added: an increase] in [removed: the labor market.][added: inflationary pressures.]

[removed: In recent months, the] [added: The] number of COVID-19 cases rebounded in many countries around the [removed: world,] [added: world throughout the year,] including the United States, especially after more infectious strains of the virus [removed: started to] [added: have] spread globally.

Although a number of vaccines for COVID-19 have been [removed: developed or are in the process of development,] [added: developed,] the [removed: timing] [added: effectiveness] of widespread vaccination is [removed: uncertain] [added: uncertain,] and these vaccines [added: have been, and] may [removed: be] [added: in the future be,] less effective against any new mutated strains of the virus.

In addition, we have implemented various initiatives intended to reduce the impact of COVID-19, such as [removed: employees working] [added: mandatory vaccination and/or testing and ability to work] remotely from home, while also seeking to maintain business continuity.

Valuations of our and our funds' investments are generally correlated to the performance of the relevant equity and debt [removed: markets.][added: markets, which have been affected by governmental actions, including fiscal and monetary stimulus and withdrawal of stimulus.]

- COVID-19 significantly increases the challenges associated with business planning, strategy, execution, portfolio management, fundraising, and other aspects of our business operations, the operation of our portfolio companies' businesses, and the operation of entities [removed: to] [added: with] whom we or our funds have loaned money or otherwise do [removed: business] [added: business, including] through supply or customer relationships.

None of us, our portfolio companies or our and their respective counterparties, vendors, or advisors have previously faced a situation that we view as comparable to the current COVID-19 crisis, which, among other factors, involves a major simultaneous supply and demand shock to global, regional and national economies and significant [removed: outsize] [added: outsized] effects on particular business [removed: sectors.][added: sectors, including for example, severe supply chain disruptions.]

- [removed: Limitation] [added: Future limitations] on travel and social distancing requirements implemented in response to COVID-19 [added: may] challenge our ability to market new or successor funds or new insurance policies as anticipated prior to COVID-19, potentially resulting in reduced or delayed revenues.

In addition, fund investors may become restricted by their asset allocation policies to invest in new or successor funds that we provide, because these policies often restrict the amount that they [removed: are permitted to invest in alternative assets like the strategies of our investment funds when there is a decline in public]

- [removed: If] [added: Depending on] the [removed: impact] [added: future impacts] of [removed: COVID-19 continues,] [added: COVID-19,] we and our funds may have more limited opportunities to successfully exit existing investments, due to, among other reasons, lower valuations, decreased revenues and earnings, lack of potential buyers with financial resources to pursue an acquisition, or limited or no ability to conduct initial public offerings in equity capital markets, resulting in a reduced ability to realize value from such investments;

Changes in the debt financing markets are impacting, or, if the volatility in [added: the] financial market continues, may in the future impact, the ability of our portfolio companies to meet their respective financial obligations.

- Borrowers of loans, notes and other credit instruments in our credit funds’ portfolio [removed: are more likely to be] [added: may become] unable to meet their principal or interest payment obligations or satisfy financial covenants, and tenants leasing real estate properties owned by our funds [removed: are] [added: may become] more likely not to be able to pay rents in a timely manner or at all, resulting in a decrease in value of our funds' credit and real estate investments and lower than expected [removed: return.][added: returns.]

In addition, for variable interest instruments, lower reference rates resulting from government stimulus programs in response to COVID-19 [removed: could lead] [added: has and may continue] to [added: result in] lower interest income for our credit funds;

- While the impact of COVID-19 on our portfolio companies has varied depending on the location and industry in which they operate, many of our portfolio companies operate in industries that have been, and continue to be, materially affected by COVID-19, including but not limited to healthcare, travel, entertainment, hospitality, [removed: senior living,] [added: housing,] energy and retail industries.

Many of these companies [removed: are facing] [added: have faced] operational and financial hardships resulting from the spread of COVID-19 and related governmental measures, such as the closure of stores, limitations on business operations, restrictions on travel, quarantines or stay-at-home orders.

If the disruptions caused by COVID-19 [removed: continue and the] [added: worsen or if certain onerous] restrictions [removed: put in place] are [removed: not lifted or] reinstated, the businesses of these portfolio companies could suffer materially or become insolvent, which would decrease the value of our funds’ investments;

- [removed: An extended period] [added: Extended periods] of remote working by our employees could strain our technology resources and introduce operational risks, including heightened cybersecurity risk.

Remote working environments [removed: are] [added: may be] less secure and more susceptible to hacking attacks, including [added: ransomware,] phishing and social engineering attempts that seek to exploit the COVID-19 pandemic; and

See “—COVID-19 continues to impact the United States and other countries throughout the world, and it has caused and may further cause disruptions to our business and adversely affect our financial results.” See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Environment” for a discussion of recent developments in market and business conditions that may affect our business.

Fund investors may also seek to redeploy capital away from

For example, certain investments with floating interest rate loans may become unable to meet their debt service obligations if their benchmark interest rates were to rise materially, or if these investments' lenders or debt holders generally are unwilling to extend or refinance their loans or debt securities on similarly attractive terms.

Our insurance business is materially affected by market and economic conditions as well.

Although valuations across our investments generally improved throughout 2021, driven by a strong rebound in equity and fixed income markets, financial markets experienced significant volatility in early 2022.

The withdrawal of fiscal or monetary stimulus, or the failure to implement announced programs or withdrawals of stimulus as anticipated, could have material impacts to market and economic conditions, which may negatively affect the value of our investment portfolio in the future and adversely impact our financial results;

are permitted to invest in alternative assets like the strategies of our investment funds when there is a decline in public equity markets.

strategic plans.

We also may also experience more attrition by employees who unexpectedly resign, and we may have difficulty replacing them or hiring the new employees needed for our current business or the future growth of our business.

On

December 31, 2021, the following LIBOR currencies across all tenors ceased to be published: Sterling (GBP) LIBOR, Euro LIBOR, Japanese Yen (JPY) LIBOR and Swiss Franc (CHF) LIBOR.

Additionally, one week and two month U.S. Dollar (USD) LIBOR tenors ceased to be published.

It is expected that the remaining tenors of USD LIBOR will cease to be published and or no longer be representative on June 30, 2023 in the United States, and that SOFR will be the predominant replacement for LIBOR.

At this time, it appears that SOFR will attain broad market acceptance as a replacement for LIBOR; however, there may be segments of the market that may opt to utilize other alternative reference rate as various industry organizations are evaluating alternatives to SOFR.

As of January, 1, 2022, global regulators have stated there can be no new LIBOR-linked origination and or issuance in any LIBOR currency and as such, remaining USD LIBOR tenors may only be referenced on a legacy basis for facilities that funded on or before December 31, 2021.

Agreements governing our corporate revolving credit facility and our capital markets revolving credit facilities either mature before June 30, 2023 or contain “fallback” provisions providing for alternative rate calculations switches for all Non-USD LIBOR currencies as well as USD LIBOR.

- pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance or funding agreement activity;

The debt obligations of KFN do not provide for recourse to KKR beyond the assets of KFN.

AUM referred to as perpetual capital is subject to material reduction, including through withdrawal, redemption or dividends, and termination.

We refer to a significant portion of our AUM from time to time as perpetual capital, because it has an indefinite term with no predetermined requirement to return invested capital to investors upon the realization of investments.

This AUM includes the capital of our registered funds, certain unregistered funds, listed companies, and insurance companies, and it excludes our traditional private equity funds, similarly structured investment funds, and hedge fund partnerships.

In addition to fluctuations based on the valuations of the underlying investments of the AUM, this capital is subject, however, to withdrawals, redemptions and periodic payments such as dividends.

Perpetual capital may also be reduced through elections by investors to redeem their fund investment.

In addition, we expect that the capital arising from KKR’s investment management agreements with Global Atlantic would, in general, be reduced if outflows to pay policyholder obligations under Global Atlantic's insurance policies and reinsurance agreements exceed inflow from writing new insurance policies or entering into new reinsurance transactions.

Moreover, perpetual capital may be removed from our AUM under certain circumstances, because the underlying investment management agreement may be terminated by a client for specific reasons like poor investment performance, and perpetual capital may also be terminated by a client’s failure to renew our investment management agreement.

Therefore, investors should not view this component of our AUM as being permanent without exception, because it can be subject to material reductions and even termination.

currently represent a significant proportion of the assets of many of our funds and balance sheet assets, volatility in the equity markets may have a significant impact on our reported results.

investment periods that precede the harvesting period.

fundraises and negatively affect the price of our stock.

In 2021, the SEC established an enforcement task force to look into ESG practices and disclosures by public companies and investment managers and may impose more stringent regulation of ESG funds and ESG-related claims.

Among other things, new laws could seek to increase the corporate tax rate or corporate tax base (for example, by way of a book minimum tax), limit further the deductibility of interest, and subject non-U.S. taxable income to a higher level of U.S. tax.

Any such tax changes could materially increase the amount of taxes we, our portfolio companies and our investors would be required to pay directly or indirectly.

For example, increases in the corporate tax rate may adversely impact the cash flow of our portfolio companies and result in our funds selling those assets at values that are less than we projected, which would in turn have negative impact to the investment fund’s performance and to the pace of realizations.

Other changes that could be enacted in the future, including changes to tax laws enacted by state or local governments in jurisdictions in which we or our portfolio companies operate, could result in further changes to state and local taxation and materially adversely affect our financial position and results of operations.

For countries other than the U.S., the OECD recommended model rules for Pillar Two in late 2021.

For the U.S., the OECD is expected to complete its recommendation in early 2022 with the release of commentary on the interaction between the model rules and current U.S. tax law.

Countries or jurisdictions may implement the recommended model rules as drafted, in a modified form, or not at all.

Our business and our portfolio companies’ businesses could be

significantly impacted if the model rules, or any future variation, are implemented in any of the countries in which our business, our portfolio companies’ businesses, or our investment structures are located.

Efforts to retain or attract employees, including our

For example, the global outbreak of a novel strain of coronavirus ("COVID-19") in 2020 caused severe economic contractions around the world and adversely impacted businesses in many industries.

See "—COVID-19 continues to impact the United States and other countries throughout the world, and it has caused and may further cause disruptions to our business and adversely affect our financial results." In addition, our businesses and the businesses of the companies in which we invest also suffered during the global financial crisis during 2008 and 2009, which provoked significant volatility of securities prices, contraction in the availability of credit and the failure of a number of companies, including leading financial institutions.

For example, following the outbreak of COVID-19 in the United States and Europe in the first quarter of 2020, valuations of many of our investments as of March 31, 2020 were lower compared to December 31, 2019, driven primarily by actual and expected revenue declines and decreases in value of our publicly traded portfolio companies and of comparable companies in the case of our privately held portfolio companies.

transaction or other fees, and other concessions.

Moreover, our insurance business is materially affected by conditions in the capital markets and the U.S. economy generally, as well as by the global economy to the extent it affects the U.S. economy.

Although valuations across our investments generally improved after the first quarter of 2020, driven by a strong rebound in equity and fixed income markets, the continuing existence and resurgence of COVID-19 cases, which among other things could result in further shutdown of or limitation on businesses, may negatively affect the value of our investment portfolio in the future and thereby adversely impact our book value per share, accrued carried interest and assets under management;

equity markets.

In 2020, in response to certain state insurance department requirements, Global Atlantic offered all policyholders a 90-day moratorium on lapsing policies and a waiver of withdrawal fees, subject to a cap.

such plans cannot anticipate all scenarios, and we may experience potential loss of productivity or a delay in the roll out of certain strategic plans.

Such announcement indicates that LIBOR in its current form will cease to exist after 2021, and instead, an alternative reference rate will be established.

However, it is unclear whether SOFR will attain

broad market acceptance as a replacement for LIBOR, and various industry organizations are developing other alternative reference rates.

In November 2020, the administrator of LIBOR announced its intention to extend the publication of U.S. dollar LIBOR (except for the one-week and two-month tenors) until June 30, 2023, subject to a consultation process, and the Federal Reserve Board, the Alternative Reference Rates Committee and the International Swaps and Derivatives Association also issued concurrent statements agreeing with such announcement.

thresholds.

may restrict their ability to make distributions to KKR.

Under the new U.S. presidential administration, there is a higher likelihood of regulatory focus on ESG matters.

In December 2020, the Internal Revenue Service (the "IRS") released final regulations under Section 162(m), which addressed changes made by the Tax Cuts and Jobs Act, which was enacted in December 2017 and amended various aspects of U.S. federal income tax legislation (the "2017 Tax Act"), and,

among other things, extended the coverage of Section 162(m) to include compensation paid by a partnership for services performed for it by a covered employee of a corporation that is a partner in the partnership.

While the likelihood and nature of any such legislation or regulations is uncertain, the new administration may pursue tax policies seeking to increase the corporate tax rate and further limit the deductibility of interest, among other things.

New rules could be recommended in 2021 and if implemented could have a significant impact on KKR, its portfolio companies and its investment structures.

Although we periodically engage in discussions with the limited partners of our funds regarding a waiver of such provisions with respect

Many of our employees hold interests in our business through KKR Holdings.

These individuals historically received financial benefits from our business in the form of distributions and amounts funded by KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings.

While all of our employees receive base compensation from us, prior to 2018, annual cash bonuses for certain employees were borne by KKR Holdings from its cash reserves based upon distributions on a portion of KKR Group Partnership Units held by KKR Holdings.

However, substantially all units in KKR Holdings have been allocated to certain employees, and upon their vesting, distributions on vested units would belong to such unitholders and not be available to fund annual cash bonuses.

In addition, under its dividend policy, KKR intends to make equal quarterly dividends to holders of its common stock in a fixed amount per share per quarter.

In 2020, no annual cash bonuses were borne by KKR Holdings.

Although KKR Holdings may fund a portion of the cash bonus payments from its cash reserves, if any, in future periods, we likely will continue to utilize our own funds for most, if not all, of the cash bonus payments.

In that event, either our profit margins or our employee retention or both may be adversely impacted.

As of December 31, 2020, total balance sheet investments made by KKR in these structured transactions were approximately $1,742 million.

of these sanctions could harm our reputation and cause us to lose existing fund investors or fail to gain new fund investors or to lose or fail to gain new policyholders or ceding parties.

The SEC is continuing its pursuit of these or other focus areas.

Any actions by the SEC or other regulators against us or other investment managers can cause changes in business practices that could materially and adversely affect our business, results of operations and financial condition.

Recent and Potential Regulatory Changes in the United States. In recent years, there have been a number of changes in the regulatory framework applicable to our business, including those required under the Dodd-Frank Act.

These changes have, among other things: increased regulatory scrutiny of our industry; increased our record-keeping, reporting and disclosure requirements; and placed restrictions on the growth or type of activities certain financial institutions may pursue.

We discuss below several recent and potential regulatory changes that have impacted or may further impact our business.

*Financial Stability Oversight Council (the "FSOC").* Established under the Dodd-Frank Act, the FSOC is an inter-agency body charged with, among other things, designating systemically important nonbank financial companies for heightened prudential supervision and making recommendations regarding the imposition of enhanced regulatory standards regarding capital, leverage, conflicts and other requirements for financial firms deemed to pose a systemic threat to U.S. financial stability.

On December 4, 2019, the FSOC finalized interpretive guidance on non-bank financial company designations that prioritizes an "activities-based" approach to identify, assess, and address potential risks to U.S. financial stability and reserves entity-specific designations for instances when a potential risk cannot be adequately addressed through an activities-based approach.

Pursuant to guidance, which became effective on January 29, 2020, the FSOC applies a two-step activities-based approach to identify and address risks to financial stability from certain activities, products or practices.

If the FSOC identifies a product, activity, or practice that could pose a risk to financial stability, it will, during the first step, evaluate the extent to which certain characteristics could "amplify" risks to financial stability.

For a description of the impact that COVID-19 had and may in the future have on our business, see "Risk Factors—Risks Related to Our Business—COVID-19 continues to impact the United States and other countries throughout the world, and it has caused and may further cause disruptions to our business and adversely affect our financial results" and "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial [removed: condition."][added: condition".]

In the United States, real GDP [removed: contracted 3.5%] [added: is estimated to have expanded by 5.6%] for the [removed: full] year ended December 31, [removed: 2020,] [added: 2021,] compared to [removed: expansion] [added: a contraction] of [removed: 2.2%] [added: 3.4%] in the prior year; the U.S. unemployment rate was [removed: 6.7%] [added: 3.9%] as of December 31, [removed: 2020, up] [added: 2021,] from [removed: 3.6%] [added: 6.7%] as of December 31, [removed: 2019;] [added: 2020;] the U.S. core consumer price index [removed: was 1.6%] [added: rose 5.5%] on a year-over-year basis as of December 31, [removed: 2020, down] [added: 2021, up] from [removed: 2.3%] [added: 1.6%] on a year-over-year basis as of December 31, [removed: 2019;] [added: 2020;] and the effective federal funds rate set by the U.S. Federal Reserve was 0.1% as of December 31, [removed: 2020, down] [added: 2021, flat] from [removed: 1.6%] [added: 0.1%] as of December 31, [removed: 2019.][added: 2020.]

In [added: 2021,] the Euro [removed: Area,] [added: Area rebounded into expansion as] real GDP is estimated to have [removed: contracted] [added: risen] by [removed: 7.2%] [added: 5.1%] for the year ended December 31, [removed: 2020,] [added: 2021] compared to [removed: expansion] [added: a contraction] of [removed: 1.3%] [added: 6.4%] in the prior year; the Euro Area unemployment [removed: rate was 8.3%] [added: is estimated to have been 7.2%] as of December 31, [removed: 2020, up] [added: 2021, down] from [removed: 7.4%] [added: 8.1%] as of December 31, [removed: 2019;] [added: 2020;] Euro Area core inflation was [removed: 0.2%] [added: 2.6%] on a year-over-year basis as of December 31, [removed: 2020, down] [added: 2021, up] from [removed: 1.3%] [added: 0.2%] on a year-over-year basis as of December 31, [removed: 2019;] [added: 2020;] and the short-term benchmark interest rate set by the European Central Bank was 0.0% as of December 31, [removed: 2020,] [added: 2021,] unchanged from December 31, [removed: 2019.][added: 2020.]

In Japan, the short-term benchmark interest rate set by the Bank of Japan was -0.1% as of December 31, [removed: 2020,] [added: 2021,] unchanged from December 31, [removed: 2019; and in China, reported real GDP growth is estimated to be 2.3% for the year ended December 31, 2020, below the 6.0% reported for the year ended December 31, 2019.][added: 2020.]

Other key issues include (i) [added: further developments regarding COVID-19, including the spread of variants such as Delta and Omicron, which may prolong the adverse economic impact of the pandemic on the U.S. and global economies, including supply chain disruptions that promote cost inflation for critical goods and labor shortages, (ii) geopolitical uncertainty such as U.S.-China relations, (iii)] political uncertainty caused by, among other things, [removed: populist political parties,] economic nationalist sentiments, tensions surrounding socioeconomic inequality issues, and [removed: the at-times] partisan [removed: nature] [added: sentiments in the United States, all] of [removed: U.S. government administration,] which [removed: has] [added: have] potentially global ramifications with regards to policy, [removed: (ii) geopolitical uncertainty such as U.S.-China relations, (iii)] [added: (iv)] regulatory changes regarding, for example, taxation, international trade, cross-border investments, immigration, [removed: and] stimulus [removed: programs/rising] [added: programs and rising] levels of debt, [removed: (iv)] [added: (v) increased] volatility [removed: or] [added: and/or] downturn in [removed: stock and] [added: equity or] credit markets, [removed: (v) any] [added: (vi)] unexpected [removed: shift] [added: shifts] in [removed: the] central banks' monetary policies, [removed: (vi)] [added: and (vii)] technological advancements and innovations that may disrupt marketplaces and [removed: businesses, and (vii) further developments regarding COVID-19, in particular the rise of variants hindering the success of the vaccines and the length of time needed to vaccinate a significant segment of the global population.][added: businesses.]

For a further discussion of how market conditions may affect our businesses, see [removed: "Risk] [added: “Risk] Factors—Risks Related to Our Business—Difficult market and economic conditions can adversely affect our business in many ways, including by reducing the value or performance of the investments that we manage or by reducing the ability of our funds to raise or deploy capital, each of which could negatively impact our net income and cash flow and adversely affect our financial [removed: condition."][added: condition” and “Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial condition.”]

Periods of volatility and dislocation in the capital [removed: markets, such as the present,] [added: markets] raise substantial risks, but also can present us with opportunities to invest at reduced valuations that position us for future growth and investment returns.

[removed: Many] [added: In our asset management business, many] of our investments are in equities, so a change in global equity prices or in market volatility directly impacts the value of our investments and our profitability as well as our ability to realize investment gains and the receptiveness of fund investors to our investment products.

For the year ended December 31, [removed: 2020,] [added: 2021,] global equity markets were positive, with the S&P 500 [removed: Index] up [removed: 18.4%] [added: 29.5%] and the MSCI World Index up [removed: 16.5%] [added: 22.5%] on a total return basis including dividends.

Equity market volatility as evidenced by the Chicago Board Options Exchange Market Volatility Index (VIX), a measure of volatility, ended at [removed: 22.8] [added: 17.2] as of December 31, [removed: 2020, increasing] [added: 2021, decreasing] from [removed: 13.8] [added: 22.8] as of December 31, [removed: 2019.][added: 2020.]

For a discussion of our valuation methods, see [removed: "Risk] [added: “Risk] Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial [removed: condition"] [added: condition”] and see also [removed: "—Critical] [added: “—Critical] Accounting Policies—Fair Value Measurements—Level III Valuation [removed: Methodologies."][added: Methodologies.” In our insurance business, a change in equity prices also impacts Global Atlantic’s equity-sensitive annuity and life insurance products, including with respect to hedging costs related to and fee-income earned on those products.]

[removed: Many of our investments are also in non-investment grade credit instruments, and our funds and] [added: Our funds,] our portfolio companies [added: and Global Atlantic] also rely on credit financing and the ability to refinance existing debt.

[removed: In particular due] [added: Due] in part to holdings of credit instruments such as CLOs on our balance sheet, the performance of the credit markets has had an amplified impact on our financial results, as we directly bear the full extent of losses from credit instruments on our balance sheet.

During the year ended December 31, [removed: 2020,] [added: 2021,] U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) [removed: expanded] [added: tightened] by [removed: 2] [added: 5] basis points and U.S. high-yield corporate bond spreads (BofAML HY Master II Index) [removed: expanded] [added: tightened] by [removed: 26] [added: 77] basis points.

The non-investment grade credit indices were up during the year ended December 31, [removed: 2020,] [added: 2021,] with the S&P/LSTA Leveraged Loan Index up [removed: 3.1%] [added: 5.2%] and the BAML US High Yield Index up [removed: 6.2%.][added: 5.4%.]

During the year ended December 31, [removed: 2020,] [added: 2021,] 10-year government bond yields [removed: fell 100] [added: rose 60] basis points in the United States, [removed: fell 63] [added: rose 77] basis points in the United Kingdom, [removed: fell 38] [added: rose 39] basis points in Germany, [removed: remained flat] [added: fell 37 basis points] in China, and rose [removed: 3] [added: 5] basis [removed: point] [added: points] in Japan.

For a further discussion of how market conditions may affect our businesses, see "Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can adversely affect our business in many ways, including by reducing the value or performance of the [added: investments that we manage or by reducing the ability of our funds to raise or deploy capital, each of which could negatively impact our net income and cash flow and adversely affect our financial condition." In addition, the U.S. Congress is proposing (and after the date of this report may propose other) various significant changes in tax law, including significant changes in the way U.S. corporations like ourselves and many of our U.S. portfolio companies are taxed.]

For further discussion of the impact of global credit markets on our financial condition and results of operations, see "Risk Factors—Risks Related to the Assets We Manage—Changes in the debt financing markets may negatively impact the ability of our investment funds, their portfolio companies and strategies pursued with our balance sheet assets to obtain attractive financing for their investments or to refinance existing debt and may increase the cost of such financing or refinancing if it is obtained, which could lead to lower-yielding investments and potentially decrease our net income," "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial [removed: condition" and] [added: condition,"] "Risk Factors—Risks Related to the Assets We Manage—Our funds and our firm through our balance sheet may make a limited number of investments, or investments that are concentrated in certain issuers, geographic regions or asset types, which could negatively affect our performance or the performance of our funds to the extent those concentrated assets perform [removed: poorly."] [added: poorly" and "Risk Factors—Risks Related to Global Atlantic—Interest rate fluctuations and sustained periods of low or high interest rates could adversely affect Global Atlantic’s business, financial condition, liquidity, results of operations, cash flows and prospects."] For a further discussion of our valuation methods, see "—Critical Accounting Policies—Fair Value Measurements—Level III Valuation Methodologies."

For our investments denominated in currencies other than the U.S. dollar, the depreciation in such currencies will generally contribute to the decrease in the valuation of such investments, to the extent unhedged, and adversely affect the U.S. dollar equivalent revenues of portfolio companies with substantial revenues [removed: denominated in such currencies, while the appreciation in such currencies would be expected to have the opposite effect.]

For the year ended December 31, [removed: 2020,] [added: 2021,] the euro [removed: rose 8.9%,] [added: fell 6.9%,] the British pound [removed: rose 3.1%,] [added: fell 1.0%,] the Japanese yen [removed: rose 5.2%,] [added: fell 10.3%,] and the Chinese renminbi rose [removed: 6.7%,] [added: 2.7%,] respectively, relative to the U.S. dollar.

Our Private Markets portfolio contains energy real asset investments, and certain of our other Private Markets and Public Markets strategies [removed: and products, including private equity, direct lending, special situations and CLOs, also] have [removed: meaningful] investments in [added: or related to] the energy sector.

During the year ended December 31, [removed: 2020,] [added: 2021,] the 3-year forward price of WTI crude oil [removed: decreased] [added: increased] approximately [removed: 12%,] [added: 37%,] and the 3-year forward price of natural gas increased approximately [removed: 2%.][added: 17%.]

The 3-year forward price of WTI crude oil [removed: decreased] [added: increased] from approximately [removed: $52] [added: $46] per barrel to [removed: $46] [added: $63] per barrel, and the 3-year forward price of natural gas increased from approximately [removed: $2.42] [added: $2.47] per mcf to [removed: $2.47] [added: $3.13] per mcf as of December 31, [removed: 2019] [added: 2020] and December 31, [removed: 2020,] [added: 2021,] respectively.

In addition, [removed: because we hold certain] [added: to the extent] energy real asset [removed: investments, which had a fair value of $0.7 billion as of December 31, 2020 on] [added: investments are directly held by] our balance sheet, [removed: these] price movements [removed: would] [added: can] have an amplified impact on our financial results, [removed: to the extent unhedged,] as we would directly bear the full extent of such gains or [removed: losses.][added: losses, subject to hedging.]

[removed: While the impact to longer-term prices of crude oil and natural gas has been less pronounced,] [added: In general,] we expect downward price movements to have a negative impact on the fair value of our energy portfolio, all other things being equal, given those commodity prices are an input in our valuation models.

[removed: term] [added: However, because we typically use near-term] commodity [removed: price hedges, which make] [added: derivative transactions to hedge our exposures, we expect] long-term oil and natural gas prices [added: to be] a more significant driver of the valuation of our energy investments [added: in asset management] than spot prices.

[removed: As] [added: However, as] of December 31, [removed: 2020,] [added: 2021,] energy [removed: strategies make] [added: investments in oil and gas assets made] up [added: only] approximately 1% of our assets under management, [removed: 3%] [added: 1%] of our total GAAP assets and [removed: 3%] [added: 1%] of our [removed: book] [added: total segment] assets.

Our ability to attract new capital and investors. Our ability to attract new capital and investors in our funds is driven, in part, by the extent to which they continue to see the alternative asset management industry generally, and our investment products specifically, as [removed: an] attractive [removed: vehicle] [added: means] for capital appreciation or income.

Since 2010, we have expanded into strategies such as real assets, credit, core, impact and, through hedge fund partnerships, hedge [removed: funds.][added: funds, and insurance.]

In several of [removed: these] [added: our asset management] strategies, our first time funds have begun raising successor funds, and we expect the cost of raising such successor funds to be lower.

While our Asian Fund IV, [removed: Americas Fund XII,] European Fund V, [added: North America Fund XIII,] Real Estate Partners Americas [added: III, Real Estate Partners Europe] II, Global Infrastructure Investors [removed: III and] [added: IV,] Next Generation Technology Growth Fund II [added: and Health Care Strategic Growth Fund II] exceeded the size of their respective predecessor funds, there is no assurance that fundraises for our other flagship [removed: private equity] [added: investment] funds or [added: vehicles or] for our newer strategies and their successor funds will experience similar success.

Our ability to successfully deploy capital. Our ability to maintain and grow our revenue base is dependent upon our ability to successfully deploy the capital available to us [removed: and participate] [added: as well as our participation] in capital markets transactions.

Greater competition, high valuations, increased overall cost of credit and other general market conditions may impact our ability to [removed: identify and execute attractive investments.]

Although the equity markets are not the only means by which we exit [removed: investments,] [added: investments from our funds,] the strength and liquidity of the U.S. and relevant global equity markets generally, and the initial public offering market specifically, affect the valuation of, and our ability to successfully exit, our equity positions in [removed: our private equity] [added: the] portfolio companies [added: of our funds] in a timely manner.

We consolidate the financial results of KKR Group Partnership and [removed: their] [added: its] consolidated entities, which include the accounts of our investment [removed: management and capital markets] [added: advisers, broker-dealers, Global Atlantic’s insurance] companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds and certain other entities including [removed: certain CLOs and CMBS.][added: collateralized financing entities ("CFEs").]

While the consolidation of [removed: a consolidated] [added: an investment] fund or entity does not have an effect on the amounts of Net Income Attributable to KKR or KKR's stockholders' [removed: capital] [added: equity] that KKR reports, the consolidation does significantly impact the financial statement presentation under GAAP.

For a further discussion of our consolidation policies, see [removed: Financial Statements and Supplementary Data—Note] [added: Note] 2 "Summary of Significant Accounting [removed: Policies."][added: Policies" in our financial statements.]

Key Financial Measures Under [removed: GAAP][added: GAAP - Insurance]

The following discussion of key financial measures under GAAP is based on KKR's [added: insurance] business as [added: conducted by Global Atlantic as] of December 31, [removed: 2020 and does not include the effects of the Global Atlantic acquisition, which was completed on February 1,] 2021.

Capital allocation-based income (loss) is earned from those arrangements whereby KKR serves as general partner and includes income or loss from KKR's capital interest as well as "carried interest" which entitles KKR to a disproportionate allocation of investment income or loss from [added: an] investment [removed: funds'] [added: fund's] limited partners.

In 2021, the United States showed signs of economic improvement driven primarily by government fiscal and monetary support, consumer savings and vaccine rollouts.

Inflation, however, is on the rise, driven by multiple factors, including supply chain disruptions, consumer demand, employment levels, and residential vacancy rates.

In January 2022, the U.S. Federal Reserve signaled its intention to be more aggressive at the start of the tightening cycle to dampen inflation running broadly through the U.S. economy, leading to significant market volatility.

In February 2022, actions taken by Russia in the Ukraine have also led to uncertainty and volatility.

As of February 24, 2022, the VIX ended at 30.3, compared to 17.2 as of December 31, 2021, an increase of 76.1%.

The pan-European Stoxx 600 closed down more than 21% since the start of the year; and Brent crude oil prices topped $100 for the first time since 2014.

In 2021, policymakers in China introduced a campaign for “common prosperity” focused on promoting a balance among growth, inclusion, and national security considerations, which could weigh on the outlook for economic growth over the medium term.

Also, China’s zero COVID tolerance policies may further impact growth over the near term as outbreaks occur.

Estimated real GDP in China grew by 8.0% for the year ended December 31, 2021, compared to growth of 2.2% reported for the year ended December 31, 2020.

Estimated core inflation in China was 1.0% on a year-over-year basis as of December 31, 2021, down from 2.5% on a year-over-year basis as of December 31, 2020.

In Japan, the economy has begun to embark on post-pandemic economic recovery.

In Japan, real GDP growth for the year ended December 31, 2021 is estimated to be 1.8%, up from -4.6% for the year ended December 31, 2020.

Core inflation on a year-over-year basis in Japan is estimated to have been -0.2% as of December 31, 2021, down from 0% on a year-over-year basis as of December 31, 2020.

In particular, in response to persistent inflationary pressure, short- and medium-term interest rates may rise, which may adversely impact equity and credit markets and in turn both increase volatility in equity and debt markets and reduce economic growth.

As noted above, the U.S. Federal Reserve has indicated that it is prepared to take action to manage inflation, including raising interests rates, tapering its asset purchases and shrinking the size of its balance sheet.

In addition, commodity prices are generally expected to rise in inflationary environments, and foreign exchange rates are often affected by countries monetary and fiscal responses to inflationary trends.

The Russian-Ukraine conflict, including the sanctions imposed in response to Russia's actions in February 2022, may exacerbate these issues and trends.

If enacted, these changes could materially increase the amount of taxes we and our portfolio companies are required to pay.

See “Risk Factors—Risks Related to Our Business—Changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items by tax authorities could adversely impact our effective tax rate and tax liability.”

With respect to our insurance business, fluctuations in market interest rates can expose Global Atlantic to the risk of reduced income in respect of its investment portfolio, increases in the cost of acquiring or maintaining its insurance liabilities, increases in the cost of hedging, or other fluctuations in Global Atlantic's financial, capital and operating profile which materially and adversely affect the business.

Higher interest rates, periods of changes in rates and lower rates each may result in differing impacts on Global Atlantic’s business.

See "Risk Factors—Risks Related to Global Atlantic— Interest rate fluctuations and sustained periods of low or high interest rates could adversely affect Global Atlantic’s business, financial condition, liquidity, results of operations, cash flows and prospects."

See above for volatility that occurred after the year-end.

Many of our investments, particularly in asset management, are in non-investment grade credit instruments, and, particularly in insurance, in investment grade credit instruments.

Conversely, widening credit spreads may have a positive impact on our insurance business, as the margin Global Atlantic is able to earn between crediting rates offered on its insurance products and the investment income it earns from its credit investments should increase, and tightening credit spreads may negatively impact the pricing and therefore competitiveness of Global Atlantic’s products, adversely impacting sales and growth, or may negatively impact the margins that Global Atlantic earns on sales and transactions.

In response to the U.S. Federal Reserve's change in tone and heightened geopolitical tensions in relation to Russia and Ukraine, these trends reversed in 2022 to date through February 24, with U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) widening by 34 basis points and the U.S. high-yield corporate bond spreads (BofAML HY Master II Index) widening by 83 basis points.

denominated in such currencies, while the appreciation in such currencies would be expected to have the opposite effect.

As noted above, the actions taken by Russia in the Ukraine in February 2022 have also caused volatility in the commodities markets.

As of February 24, 2022, the 3-year forward price of WTI crude oil increased approximately 16%, to $73 per barrel, and the 3-year forward price of natural gas increased approximately 11% to $3.47 per mcf.

Additionally, the front month contract for WTI crude oil settled at $92 per barrel, also a level not seen since 2014.

The reverse is true for upward price movements.

In addition, our ability to attract new capital and investors in our insurance business is driven, in part, by the extent to which they continue to see the life and annuity insurance industry generally, and in certain cases our re-insurance vehicles, as attractive means for capital appreciation or income.

identify and execute attractive investments.

In our insurance business, we deploy capital by investing in assets that are anticipated to generate net investment income in excess of the net cost of insurance.

If we are unable to originate or source attractive investments, the success and growth in revenues of our insurance business will be adversely impacted.

See “Risk Factors—Risks Related to the Assets We Manage—Changes in the debt financing markets may negatively impact the ability of our investment funds, their portfolio companies and strategies pursued with our balance sheet assets to obtain attractive financing for their investments or to refinance existing debt and may increase the cost of such financing or refinancing if it is obtained, which could lead to lower-yielding investments and potentially decrease our net income.”

In addition, volatile debt and equity markets may also make the exit of our investments more difficult to execute.

In our insurance business, we depend on the ability of our investments to generate their anticipated returns, through the payment of interest and dividends and interest as well as return of principal, in the amounts and at the times that we expect them to be made in order to manage our obligations to make payments to our policyholders.

If policyholder behavior differs from our expectations, we may be forced to sell our investments earlier than we anticipated and during market conditions where we may realize losses on the investment.

In addition, material delays in payments or impairments to our anticipated investment returns could have material adverse effects to our results of operations.

Overview of Business

For a discussion about our business lines and our firm, see "Business."

In 2020, the U.S. economy experienced a sharp contraction in the first half of the year, as a result of COVID-19, expanded significantly in the third quarter, as states began to reopen, and experienced moderate growth in the fourth quarter as new COVID-19 restrictions and closures took effect in parts of the country that faced a resurgence of the virus.

In 2020, the European Union's economy faced similar challenges due to COVID-19.

Following the sharp downturn in the first half of the year, the signs of rebound in the third quarter were cut short in the fourth quarter as certain countries in Europe, including France, Germany, Belgium, Ireland and England, reimposed restrictions and lock-downs as the number of COVID-19 cases surged across Europe.

In 2020, Japan's economy experienced a record COVID-19-related decline in the second quarter, but exhibited signs of slow recovery in the second half of the year.

In China, after the emergence of COVID-19 in the first quarter and the government's efforts to control the spread, its economy experienced a moderate but steady growth for the remainder of the year.

In addition, Global Atlantic makes significant investments in investment grade debt.

investments that we manage or by reducing the ability of our funds to raise or deploy capital, each of which could negatively impact our net income and cash flow and adversely affect our financial condition" and "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial condition."

Following significant volatility in the first half of 2020, due in large part to the COVID-19 pandemic, oil prices remained relatively stable during the third quarter and saw a meaningful uptick in the fourth quarter, although prices ended the year lower than pre-COVID-19 levels.

If demand stays depressed, we expect significant volatility in oil prices to continue.

However, we expect the impact of the decline will be mitigated by the existence of our near-

We refer to CLOs and CMBS as collateralized financing entities ("CFEs").

above), KKR & Co. Inc. Stockholders’ Equity – Series I and II Preferred, Common Stock as of December 31, 2020 would be reduced by approximately $1.57 per share, compared to $21.15 per share on such date, and our book value as of December 31, 2020 would be reduced by approximately $1.67 per adjusted share, compared to book value of $ 23.09 per adjusted share on such date.

These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

The following discussion of key Non-GAAP and other operating and performance measures under GAAP is based on KKR's business as of December 31, 2020 and does not include the effects of the Global Atlantic acquisition, which was completed on February 1, 2021.

We caution readers that these non-GAAP measures may differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures presented by other investment managers.

We believe providing adjusted shares is useful to stockholders as it provides insight into the calculation of amounts available for distribution as dividends on a per adjusted share basis assuming all units of KKR Holdings L.P. and KKR Holdings II L.P. and all shares of Series C Mandatory Convertible Preferred Stock are exchanged and converted, respectively, to shares of common stock.

After -tax distributable earnings excludes mark-to-market gains (losses) and is used by management to assess the net realized earnings of KKR for a given reporting period, after deducting equity-based compensation under the Equity Incentive Plans and adjusting to exclude the impact of strategic corporate transaction-related charges and non-recurring items, if any.

KKR believes that after-tax distributable earnings is useful to stockholders as it aligns KKR’s net realization performance with the manner in which KKR receives its revenues and determines the compensation of its employees.

Equity-based compensation expense is included in after-tax distributable earnings as a component of compensation expense in order to reflect the dilutive nature of these non-cash equity-based awards.

*Book Assets*

Book assets is a non-GAAP performance measure that represents cash and short-term investments, investments, net unrealized carried interest, tax assets, and other assets of KKR presented on a basis that deconsolidates (i) KKR's investment funds and collateralized financing entities that KKR manages and (ii) other consolidated entities that are not subsidiaries of KKR & Co. Inc. We believe this measure is useful to stockholders as it provides additional insight into the assets of KKR that are used to operate its business lines.

As used in this definition, cash and short-term investments represent cash and liquid short-term investments in high-grade, short-duration cash management strategies used by KKR to generate additional yield.

*Book Liabilities*

Book value is a non-GAAP performance measure of the net assets of KKR and is used by management primarily in assessing the unrealized value of KKR’s book assets after deducting for book liabilities, noncontrolling interests and Series A and B Preferred Stock.

We believe this measure is useful to stockholders as it provides additional insight into the net assets of KKR excluding those net assets that are allocated to noncontrolling interest holders and to the holders of the Series A and B Preferred Stock.

KKR's book value includes the net impact of KKR's tax assets and liabilities as prepared under GAAP.

See also syndicated capital.

Distributable revenues is a non-GAAP performance measure that represents the realized revenues (which excludes unrealized carried interest and unrealized net gains (losses)) generated by KKR and is the sum of (i) fees and other, net, (ii) realized performance income (loss) and (iii) realized investment income (loss).

KKR believes that distributable revenues is useful to stockholders as it provides insight into the realized revenue generated by KKR's business lines.

KKR believes that distributable expenses is useful to stockholders as it provides insight into the costs expended in connection with generating KKR's distributable revenues.

Distributable operating earnings is a non-GAAP performance measure that represents after-tax distributable earnings before interest expense, Series A and B preferred dividends, income (loss) attributable to noncontrolling interests and income taxes paid.

Fee related earnings is a non-GAAP supplemental performance measure of earnings of KKR before performance income and investment income.

Fee related earnings is calculated as KKR’s total Fees and Other, Net, multiplied by KKR’s distributable operating margin.

For purposes of the fee related earnings calculation, distributable operating margin is calculated as distributable operating earnings, before equity-based compensation, divided by total distributable revenues.

*Syndicated Capital*

Syndicated capital is the aggregate amount of capital in transactions originated by KKR and its investment funds and carry-yielding co-investment vehicles, which has been distributed to third parties, generally in exchange for a fee.

It does not include (i) capital invested in such transactions by KKR investment funds and carry-yielding co-investment vehicles, which is instead reported in capital invested, (ii) debt capital that is arranged as part of the acquisition financing of transactions originated by KKR investment funds, and (iii) debt capital that is either underwritten or arranged on a best efforts basis.

Syndicated capital is used as a measure of investment activity for KKR during a given period, and we believe that this measure is useful to stockholders as it provides additional insight into levels of syndication activity in KKR's Capital Markets business line and across KKR's investment platform.

When we commit capital [removed: of a certain amount] from our [removed: balance sheet] [added: Principal Activities business line] to investments or transactions, a balance sheet committee of senior employees, including our [removed: two] [added: Co-Executive Chairmen, one of our] Co-Chief Executive Officers, [removed: a Co-President/Co-Chief Operating Officer,] and the Chief Financial Officer, must approve the investment or transaction before it may be made.

The committee [removed: may delegate] [added: has delegated] authority to other [added: senior] employees [added: to approve certain investments or transactions,] subject to maximum commitment sizes or other limitations determined by the committee.

KKR has an investment management and distribution committee comprised of senior employees across our [added: Asset Management] business lines, and [added: it] includes our [removed: Co-Presidents/Co-Chief Operating] [added: Co-Chief Executive] Officers and Chief Financial Officer.

KKR has a risk and operations committee comprised of senior employees from across our [added: Asset Management] business [added: and] operations, and [added: it] includes our [removed: Co-Presidents/Co-] Chief Operating [removed: Officers,] [added: Officer,] Chief Financial Officer, General Counsel, and Chief Compliance Officer.

The majority of our investments as of December 31, [removed: 2020,] [added: 2021,] are reported at fair value.

Based on investments held as of December 31, [removed: 2020,] [added: 2021,] we estimate that an immediate 10% decrease in the fair value of investments generally would result in a commensurate change in the amount of net gains (losses) from investment activities (except that carried interest would likely be more significantly impacted), regardless of whether the investment was valued using observable market prices or management estimates with significant unobservable pricing inputs.

Based on the fair value of investments as of December 31, [removed: 2020,] [added: 2021,] we estimate that an immediate, hypothetical 10% decline in the fair value of investments would result in declines in net income attributable to KKR & Co. Inc. before income taxes in [removed: 2021] [added: 2022] from reductions in the following items, if not offset by other factors:

[removed: *Management Fees*][added: Management Fees]

Management fees in our infrastructure funds are calculated based on [removed: NAV] [added: the net asset value ("NAV")] of the fund and, in some cases, we additionally earn management fees on the fund's remaining commitment.

[added: The] proportion of our management fees that are based on NAV depends on the number and type of funds in existence.

For the year ended December 31, [removed: 2020,] [added: 2021,] the fund management fees that were recognized based on the NAV of the applicable funds was approximately [removed: 22%.][added: 24%.]

[removed: *Publicly] [added: Publicly] Traded [removed: Securities*][added: Securities]

We estimate that an immediate, hypothetical 10% decline in the exchange rates between the U.S. dollar and all of the major foreign currencies in which our investments were denominated as of December 31, [removed: 2020] [added: 2021] (i.e., an increase in the value of the U.S. dollar against these foreign currencies) would result in declines in net income attributable to KKR & Co. Inc. before income taxes in [removed: 2021] [added: 2022] from reductions in the following items, net of the impact of foreign exchange hedging strategies, if not offset by other factors:

| 10% Decline in Foreign Currencies Against the U.S. Dollar (1) | | | | | | $ | [removed: 140,169] [added: 183,349] | | (2) | | | $ | [removed: 117,896] [added: 151,497] | | (2) | | |

[removed: *Valuation] [added: Valuation] of [removed: Investments*][added: Investments]

[removed: *Interest Income*][added: Interest Income]

[removed: *Interest Expense*][added: Interest Expense]

With respect to debt obligations held by KKR and not in the consolidated funds or CLOs, as of December 31, [removed: 2020,] [added: 2021,] KKR had debt obligations outstanding with an aggregate principal amount of approximately $258.5 million that accrues interest at a variable rate.

The quantitative information provided in this section was prepared using estimates and assumptions that management believes are appropriate.

Asset Management

Insurance

The board of directors of TGAFG, which is the holding company for Global Atlantic, has established a risk committee that has primary oversight of market risk at Global Atlantic.

This risk committee has adopted Global Atlantic’s risk appetite principles that form the foundation of Global Atlantic’s enterprise risk management program.

The risk appetite principles include: (1) protect policyholders by seeking to maintain adequate capital and liquidity resources to honor its obligations to policyholders under situations reflecting stress scenarios calibrated to the worst modern economic cycles; (2) deliver value by remaining in a position of strength during periods of adverse market conditions, and (3) protect the franchise by identifying and cost-effectively managing risks that could adversely and materially impact franchise value.

The Global Atlantic enterprise risk management program formalizes the review of financial and non-financial risks and establishes risk management controls.

Global Atlantic monitors risks on an aggregate, legal entity and product basis, monitoring different factors, including financial and insurance, investment, hedge management, operational, and legal, compliance and regulatory risks to confirm that its risks remain within established risk limits and tolerances.

For a discussion of Global Atlantic's hedge program, see "—Insurance Segment Market Risks—Hedge Program".

Asset Management

This committee is aided by various other committees focused on the oversight of risks to our business, including a global conflicts and compliance committee and a technology and information security committee.

KKR's technology and information security committee is responsible for reviewing and monitoring global technology risks including information security, business disruption and fraud related risks.

Insurance

The TGAFG board of directors is responsible for oversight and the overall governance of Global Atlantic's business and operations.

The TGAFG board includes among its members our Co-Chief Executive Officers.

To assist with its oversight of Global Atlantic, the TGAFG board of directors has established an audit, risk, investment, operations & technology, nominating & governance, compensation and special transaction review committee.

Asset Management Segment Market Risks

The following is a discussion of the significant market risk exposures for KKR's Asset Management business.

| 10% Decline in Fair Value of Investments (1) | | | | | | $ | 33,959 | | (2) | | | $ | 685,824 | | (3) | | | $ | 1,236,343 | | (3) | | |

Insurance Segment Market Risks

The following is a discussion of the significant market risk exposures for Global Atlantic.

*Hedge Program*

To manage market risk, Global Atlantic established a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while taking into consideration accounting and capital impacts.

For Global Atlantic's fixed-indexed annuity and indexed universal life policies, Global Atlantic generally seeks to use static hedges to offset the exposure primarily created by changes in embedded derivative balances.

For Global Atlantic's variable policies, including variable annuity policies and variable universal life policies, Global Atlantic generally seeks to dynamically hedge its exposure to changes in the value of the guarantee Global Atlantic provides to policyholders.

In the context of specific reinsurance or other transactions in Global Atlantic's institutional channel or strategic acquisitions, Global Atlantic may also enters into hedges which are designed to limit short-term market risks to the economic value of the target assets.

From time to time, Global Atlantic also enters into hedges designed to limit the volatility associated with changes in the value of its general account assets or changes to net investment income as a result of interest rate or credit spread movements, while also taking into consideration economic impacts.

While not the primary focus of its hedging strategy, Global Atlantic also enters into currency swaps and forwards to manage foreign exchange rate risks with respect to certain investments denominated in foreign currencies.

Global Atlantic also enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.

Where Global Atlantic has derivative instruments that are designated and qualify as accounting hedges, these derivative instruments receive hedge accounting.

Global Atlantic's hedge program is not designed to, and may not be effective in, offsetting all impacts to net income, assets under management, statutory capital or economic values.

Movements in market variables other than interest rates and equity market prices that are not explicitly hedged can also cause net income volatility.

See "Risk Factors—Risks Related to Global Atlantic—Global Atlantic's use of derivative financial instruments within its risk management strategy may not be effective or sufficient." and "Risk Factors—Risks Related to Global Atlantic—Global Atlantic may experience volatility in its net income under GAAP due to its funds withheld coinsurance transactions" in this report.

*Sensitivities*

Global Atlantic evaluates the sensitivity of net income to specific changes in interest rates, credit spreads and equity prices projected using internal models.

All of the estimated sensitivities assume that all other factors remain constant and reflect the impact of related hedges assuming no hedge rebalancing in Global Atlantic's dynamic program, as explained further below.

Global Atlantic's internal models project impacts as of a specific date, and are measured relative to a starting level reflecting its assets and liabilities at that date and the actuarial factors, investment activity, and assumed investment returns associated with insurance liabilities.

The models measure the impact of changing one factor at a time and assume that all other factors remain unchanged.

Actual results can differ significantly from these estimates for a variety of reasons, including the interaction among these factors when more than one changes, discretionary actions by management in response to such changes, differences between the return of the underlying fund and the return on the index being hedged, actual experience differing from the assumptions, changes in business mix, effective tax rates and other market factors, and limitations inherent in the use of models.

For these reasons, the sensitivities should only be viewed as directional estimates of the impacts on Global Atlantic's net income and shareholders’ equity, excluding accumulated other comprehensive income ("AOCI"), and actual changes in response to such scenarios may differ materially from estimates provided.

The quantitative information provided in this section was prepared using estimates and assumptions that management believes are appropriate in order to provide a reader with an indication of the directional impact that a hypothetical adverse movement in certain risks would have on net income attributable to KKR & Co. Inc. as of and for the period ended December 31, 2020.

In all cases, these directional impacts are presented after deducting amounts that are attributable to noncontrolling interests held by KKR Holdings.

As of December 31, 2020, KKR & Co. Inc. and KKR Holdings held interests in our business of 67.5% and 32.5%, respectively.

| 10% Decline in Fair Value of Investments (1) | | | | | | $ | 21,258 | | (2) | | | $ | 503,385 | | (3) | | | $ | 1,011,954 | | (3) | | |

The

We are a leading global investment firm that offers alternative asset management [removed: and] [added: as well as] capital markets and insurance solutions.

Our asset management business offers a broad range of investment management services to [removed: our] fund investors [removed: and provides capital markets services to our firm, our portfolio companies and third parties.][added: around the world.]

Throughout our history, we have consistently been a leader in the private equity industry, having completed more than [removed: 375] [added: 650] private equity investments in portfolio companies with a total transaction value in excess of [removed: $650] [added: $675] billion as of December 31, [removed: 2020.][added: 2021.]

[removed: We have grown] [added: Since the inception of] our firm [removed: by expanding] [added: in 1976, we have expanded] our [removed: geographical presence] [added: investment strategies] and [removed: building businesses in] [added: product offerings from traditional private equity to] areas such as leveraged credit, alternative credit, [removed: capital markets,] infrastructure, energy, real estate, growth equity, core and impact investments.

Our balance sheet [removed: has provided] [added: provides] a significant source of capital in the growth and expansion of our business, and [added: it] has allowed us to further align our interests with those of our fund investors.

We seek to work proactively and collaboratively [removed: as one firm] across business lines, departments, and geographies, as appropriate, to achieve what we believe are the best [added: investment] results for our [removed: funds] [added: clients] and the firm.

As [removed: a global investment] [added: an asset management] firm, we earn [removed: management, monitoring, transaction and] [added: fees, including] incentive [removed: fees] [added: fees,] and carried interest for providing investment [removed: management, monitoring] [added: management] and other services to our funds, vehicles, CLOs, managed accounts and portfolio companies, and we generate transaction-specific income from capital markets transactions.

We earn additional investment income by investing our own capital alongside that of our fund [removed: investors,] [added: investors and] from other assets on our balance [removed: sheet and from the carried interest we receive from our funds and certain of our other investment vehicles.][added: sheet.]

[removed: A carried] [added: Carried] interest [added: we receive from our funds and certain other investment vehicles] entitles [removed: the sponsor of a fund] [added: us] to a specified percentage of investment gains that are generated on third-party capital that is invested.

These teams invest capital, a substantial portion of which is of a long duration [removed: and] [added: or] not subject to [removed: redemption.][added: predetermined redemption requirements, which provides us with significant flexibility to grow investments and select exit opportunities.]

[added: For more information about the limitations of perpetual capital, please see "Risks Related to Our Business—AUM referred to as perpetual capital is subject to material reduction, including through withdrawal, redemption, or dividends, and termination."] We believe that these aspects of our business [removed: will] help us continue to [removed: expand and] grow our [added: asset management] business and deliver strong investment performance in a variety of economic and financial conditions.

Global Atlantic is a leading U.S. [removed: annuity] [added: retirement] and life insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets.

As of December 31, [removed: 2020,] [added: 2021,] Global Atlantic served [removed: over two] [added: approximately three] million policyholders.

[removed: The firm operates] [added: Our investment teams operate] with a single culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices across offices and asset classes.

When appropriate, we staff [added: investment] transactions across multiple offices and businesses in order to take advantage of the industry-specific expertise of our investment professionals, and we hold regular meetings in which investment professionals throughout our offices share their knowledge and experiences.

Since our inception, one of our fundamental [added: investment] philosophies has been to align the interests of the firm and our [removed: principals] [added: employees] with the interests of our fund investors, portfolio companies and other stakeholders.

As of December 31, [removed: 2020,] [added: 2021,] we and our employees and other personnel have approximately [removed: $20.0] [added: $26.9] billion invested in or committed to our own funds and portfolio companies, including [removed: $10.6] [added: $11.1] billion [added: of capital] funded from our balance sheet, [removed: $6.3] [added: $11.9] billion of additional [removed: commitments from] [added: capital committed by] our balance sheet to [added: our] investment funds, [removed: $2.4] [added: $2.8] billion funded from personal [removed: investments] [added: investments,] and [removed: $0.7] [added: $1.1] billion of additional [added: capital] commitments from personal investments.

[removed: We operate] [added: In] our asset management [removed: business in] [added: business, we have] four business lines: (1) Private Markets, (2) Public Markets, (3) Capital Markets, and (4) Principal Activities.

In addition to our traditional private equity [removed: funds,] [added: funds that invest in large and mid-sized companies,] we sponsor investment funds that invest in [added: core equity,] growth equity, [removed: core] and impact investments.

We also manage and sponsor investment funds that invest capital in real assets, such as infrastructure, [removed: energy and] real [removed: estate.][added: estate, and energy.]

As of December 31, [removed: 2020,] [added: 2021,] our Private Markets business line had [removed: $148.7] [added: $257.0] billion of AUM, consisting of [removed: $99.1] [added: $153.3] billion in private equity (including growth equity, core and impact investments), [removed: $35.2] [added: $83.3] billion in real assets (including infrastructure, [removed: energy and] real [removed: estate)] [added: estate,] and [removed: $14.4] [added: energy) and $20.4] billion in other related strategies.

[removed: ][added: ]

(1) For the years 2006 through 2008, AUM are presented pro forma for the acquisition of the assets and liabilities of KKR & Co. (Guernsey) L.P. (formerly known as KKR Private Equity Investors, L.P.) [removed: ("KPE")] on October 1, [removed: 2009 (the "KPE Transaction"),] [added: 2009,] and therefore exclude the net asset value of [removed: KPE] [added: that vehicle] and its former commitments to our investment funds.

In [removed: 2015,] [added: 2015] our definition of AUM was amended to include [added: (i) KKR's pro rata portion of AUM managed by strategic partners in which KKR holds a minority stake and (ii)] capital commitments for which we are eligible to receive fees or carried interest upon deployment of [removed: capital and our pro rata portion of the AUM managed by strategic partners in which we hold an ownership interest.][added: capital.]

AUM for all prior periods [removed: have] [added: has] been adjusted to include such changes.

The table below presents information as of December 31, [removed: 2020,] [added: 2021,] relating to our current private [removed: equity, growth equity, core investment, impact] [added: equity] and real asset funds and other investment vehicles in our Private Markets business line for which we have the ability to earn carried interest.

This data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after December 31, [removed: 2020.][added: 2021.]

| Asian Fund IV | | | 7/2020 | | | 7/2026 | | | [removed: 13,818.5] [added: 14,735] | | | [removed: 13,818.5] [added: 12,056] | | | [removed: 7.2%] [added: 7%] | | | [removed: —] [added: 2,679] | | | — | | | [removed: —] [added: 2,679] | | | [removed: —] [added: 2,937] | | | — | | |

| Asia Pacific Infrastructure Investors | | | 1/2020 | | | 1/2026 | | | [removed: 3,791.6] [added: 3,792] | | | [removed: 3,791.6] [added: 2,738] | | | [removed: 6.6%] [added: 7%] | | | [removed: —] [added: 1,311] | | | [removed: —] [added: 258] | | | [removed: —] [added: 1,161] | | | [removed: —] [added: 1,302] | | | [removed: —] [added: 33] | | |

| Asia Real Estate Partners | | | 6/2019 | | | 6/2023 | | | [removed: 1,682.4] [added: 1,682] | | | [removed: 1,682.4] [added: 1,415] | | | [removed: 14.9%] [added: 15%] | | | [removed: —] [added: 267] | | | — | | | [removed: —] [added: 267] | | | [removed: —] [added: 343] | | | [removed: —] [added: 1] | | |

| Real Estate Credit Opportunity Partners II | | | 4/2019 | | | 6/2022 | | | [removed: 950.0] [added: 950] | | | [removed: 606.6] [added: 507] | | | [removed: 5.3%] [added: 5%] | | | [removed: 343.4] [added: 443] | | | [removed: 12.0] [added: 65] | | | [removed: 343.4] [added: 443] | | | [removed: 353.9] [added: 479] | | | [removed: —] [added: 8] | | |

| Unallocated Commitments (6) | | | | | | | | | [removed: 903.1] [added: 1,994] | | | [removed: 903.1] [added: 1,994] | | | Various | | | — | | | — | | | — | | | — | | | — | | |

The end date represents the earlier of (i) the date on which the general partner of the applicable fund was or will be required by the fund's governing agreement to cease making [removed: new] investments [added: (other than reserved amounts)] on behalf of the fund, unless extended by a vote of the fund [removed: investors] [added: investors,] and (ii) the date on which the last [removed: new] investment was made.

Foreign currency commitments have been converted into U.S. dollars based on (i) the foreign exchange rate at the date of purchase for each investment and (ii) the exchange rate that prevailed on December 31, [removed: 2020,] [added: 2021,] in the case of uncalled commitments.

(3)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of [removed: capital, with the limited partners' investment further reduced for any return of capital and realized gains from which the general partner did not receive a carried interest.][added: capital.]

We have [removed: nearly] doubled the value of capital that we have invested in our Private Markets investment funds, turning [removed: $122.0] [added: $141.5] billion of [added: invested] capital into [removed: $240.2] [added: $293.6] billion of value from our inception in 1976 to December 31, [removed: 2020.][added: 2021.]

[removed: ][added: ]

From our inception in 1976 through December 31, [removed: 2020,] [added: 2021,] our investment funds with at least 24 months of investment activity generated a cumulative gross IRR of 25.6%, compared to the [removed: 11.9%] [added: 12.1%] and [removed: 9.2%] [added: 9.5%] gross IRR achieved by the S&P 500 Index and MSCI World Index, respectively, over the same period, despite the cyclical and sometimes challenging environments in which we have operated.

The S&P 500 Index and MSCI World Index are unmanaged indices and [removed: such] [added: their] returns assume reinvestment of distributions and do not reflect any fees or expenses.

The tables below present information as of December 31, [removed: 2020,] [added: 2021,] relating to the historical performance of certain of our Private Markets investment vehicles since inception, which we believe illustrates the benefits of our investment approach.

We also provide capital markets services for our firm, our portfolio companies and third parties.

We operate in two segments, our asset management business and, beginning in the first quarter of 2021, our insurance business.

Asset Management

As of December 31, 2021, approximately 90% of our AUM consists of capital that is not subject to redemption for at least 8 years from inception and what we refer to as perpetual capital.

The following chart presents the growth in the AUM of our Private Markets business line from December 2005 through December 31, 2021.

| North America Fund XIII | | | 6/2021 | | | 6/2027 | | | $ | 17,749 | | $ | 17,749 | | 6% | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |

| Americas Fund XII | | | 1/2017 | | | 6/2021 | | | 13,500 | | | 1,937 | | | 6% | | | 12,039 | | | 4,198 | | | 10,986 | | | 26,586 | | | 2,816 | | |

| North America Fund XI | | | 9/2012 | | | 1/2017 | | | 8,718 | | | 422 | | | 3% | | | 9,752 | | | 16,367 | | | 3,693 | | | 8,659 | | | 983 | | |

| 2006 Fund (4) | | | 9/2006 | | | 9/2012 | | | 17,642 | | | 247 | | | 2% | | | 17,309 | | | 34,744 | | | 1,649 | | | 2,781 | | | 278 | | |

| Millennium Fund (4) | | | 12/2002 | | | 12/2008 | | | 6,000 | | | — | | | 3% | | | 6,000 | | | 14,123 | | | — | | | 6 | | | 1 | | |

| European Fund V | | | 3/2019 | | | 7/2025 | | | 6,356 | | | 2,597 | | | 2% | | | 3,828 | | | 361 | | | 3,707 | | | 5,225 | | | 257 | | |

| European Fund IV | | | 12/2014 | | | 3/2019 | | | 3,515 | | | 66 | | | 6% | | | 3,577 | | | 4,519 | | | 1,935 | | | 3,103 | | | 220 | | |

| European Fund III (4) | | | 3/2008 | | | 3/2014 | | | 5,509 | | | 150 | | | 5% | | | 5,360 | | | 10,604 | | | 669 | | | 175 | | | (20) | | |

| European Fund II (4) | | | 11/2005 | | | 10/2008 | | | 5,751 | | | — | | | 2% | | | 5,751 | | | 8,507 | | | — | | | 34 | | | — | | |

| Asian Fund III | | | 4/2017 | | | 7/2020 | | | 9,000 | | | 2,156 | | | 6% | | | 7,248 | | | 3,633 | | | 6,541 | | | 13,671 | | | 1,273 | | |

| Asian Fund II | | | 4/2013 | | | 4/2017 | | | 5,825 | | | 34 | | | 1% | | | 6,839 | | | 5,946 | | | 3,796 | | | 3,833 | | | 152 | | |

| Asian Fund (4) | | | 7/2007 | | | 4/2013 | | | 3,983 | | | — | | | 3% | | | 3,974 | | | 8,728 | | | 110 | | | 23 | | | 4 | | |

| China Growth Fund (4) | | | 11/2010 | | | 11/2016 | | | 1,010 | | | — | | | 1% | | | 1,010 | | | 1,056 | | | 330 | | | 249 | | | (3) | | |

| Next Generation Technology Growth Fund II | | | 12/2019 | | | 12/2025 | | | 2,088 | | | 796 | | | 7% | | | 1,489 | | | 259 | | | 1,352 | | | 2,218 | | | 157 | | |

| Next Generation Technology Growth Fund | | | 3/2016 | | | 12/2019 | | | 659 | | | 4 | | | 22% | | | 666 | | | 810 | | | 359 | | | 1,529 | | | 128 | | |

| Health Care Strategic Growth Fund II | | | 5/2021 | | | 5/2027 | | | 3,789 | | | 3,789 | | | 4% | | | — | | | — | | | — | | | — | | | — | | |

| Health Care Strategic Growth Fund | | | 12/2016 | | | 5/2021 | | | 1,331 | | | 522 | | | 11% | | | 939 | | | 196 | | | 834 | | | 1,261 | | | 62 | | |

| Global Impact Fund | | | 2/2019 | | | 2/2025 | | | 1,242 | | | 429 | | | 8% | | | 904 | | | 96 | | | 849 | | | 1,364 | | | 94 | | |

| Private Equity Funds | | | | | | | | | 128,402 | | | 42,954 | | | | | | 89,364 | | | 114,147 | | | 39,489 | | | 73,654 | | | 6,402 | | |

| Co-Investment Vehicles and Other | | | Various | | | Various | | | 16,999 | | | 7,898 | | | Various | | | 9,524 | | | 7,144 | | | 6,228 | | | 9,260 | | | 1,434 | | |

| Total Private Equity Funds | | | | | | | | | 145,401 | | | 50,852 | | | | | | 98,888 | | | 121,291 | | | 45,717 | | | 82,914 | | | 7,836 | | |

| Core Investment Vehicles | | | Various | | | Various | | | 24,239 | | | 13,379 | | | 31% | | | 11,361 | | | 516 | | | 11,163 | | | 18,343 | | | 345 | | |

| Energy Income and Growth Fund II | | | 6/2018 | | | 8/2022 | | | 994 | | | 415 | | | 20% | | | 772 | | | 193 | | | 610 | | | 814 | | | 13 | | |

| Energy Income and Growth Fund | | | 9/2013 | | | 6/2018 | | | 1,974 | | | — | | | 13% | | | 1,974 | | | 912 | | | 1,174 | | | 670 | | | — | | |

| Natural Resources Fund (4) | | | Various | | | Various | | | 887 | | | — | | | Various | | | 887 | | | 123 | | | 193 | | | 46 | | | — | | |

| Global Energy Opportunities | | | Various | | | Various | | | 915 | | | 62 | | | Various | | | 519 | | | 165 | | | 326 | | | 190 | | | — | | |

| Global Infrastructure Investors III | | | 6/2018 | | | 6/2021 | | | 7,169 | | | 2,924 | | | 4% | | | 4,511 | | | 979 | | | 4,022 | | | 4,211 | | | — | | |

| Global Infrastructure Investors II | | | 10/2014 | | | 6/2018 | | | 3,040 | | | 124 | | | 4% | | | 3,163 | | | 4,239 | | | 1,281 | | | 1,757 | | | 47 | | |

| Global Infrastructure Investors | | | 9/2011 | | | 10/2014 | | | 1,040 | | | — | | | 5% | | | 1,050 | | | 2,228 | | | — | | | — | | | — | | |

| Diversified Core Infrastructure Fund | | | 12/2020 | | | (5) | | | 6,939 | | | 5,054 | | | 7% | | | 1,889 | | | 54 | | | 1,885 | | | 1,931 | | | — | | |

| Real Estate Partners Americas III | | | 12/2020 | | | 1/2025 | | | 4,253 | | | 3,167 | | | 5% | | | 1,086 | | | — | | | 1,086 | | | 1,196 | | | — | | |

| Real Estate Partners Americas II | | | 5/2017 | | | 12/2020 | | | 1,921 | | | 266 | | | 8% | | | 1,892 | | | 1,973 | | | 816 | | | 1,096 | | | 140 | | |

| Real Estate Partners Americas | | | 5/2013 | | | 5/2017 | | | 1,229 | | | 142 | | | 16% | | | 1,016 | | | 1,405 | | | 142 | | | 67 | | | 2 | | |

| Real Estate Partners Europe II | | | 12/2019 | | | 4/2024 | | | 2,083 | | | 1,117 | | | 10% | | | 966 | | | — | | | 966 | | | 1,107 | | | — | | |

| Real Estate Partners Europe | | | 9/2015 | | | 12/2019 | | | 710 | | | 141 | | | 10% | | | 648 | | | 576 | | | 292 | | | 360 | | | 15 | | |

Additionally, we have increased our focus on meeting the needs of our existing fund investors and in developing relationships with new investors in our funds.

Our growth has been driven by value that we have created through our operationally focused investment approach, the expansion of our existing businesses, our entry into new lines of business, innovation in the products that we offer investors in our funds, an increased focus on providing tailored solutions to our clients and the integration of capital markets distribution activities.

Beginning in the first quarter of 2021, we will also earn our share of income generated by Global Atlantic as a result of the Global Atlantic acquisition.

As of December 31, 2020, approximately 80% of our capital is not subject to redemption for at least 8 years from inception, providing us with significant flexibility to grow investments and select exit opportunities.

With offices around the world, we have established ourselves as a leading global investment firm.

Our Business Lines

| Americas Fund XII | | | 1/2017 | | | 1/2023 | | | $ | 13,500.0 | | $ | 5,462.1 | | 5.8% | | | $ | 8,332.5 | | $ | 379.6 | | $ | 8,221.5 | | $ | 13,506.1 | | $ | 836.2 | |

| North America Fund XI | | | 9/2012 | | | 1/2017 | | | 8,718.4 | | | 429.8 | | | 2.9% | | | 9,733.0 | | | 12,717.1 | | | 4,499.7 | | | 8,851.6 | | | 818.9 | | |

| 2006 Fund (4) | | | 9/2006 | | | 9/2012 | | | 17,642.2 | | | 247.4 | | | 2.1% | | | 17,309.3 | | | 32,435.1 | | | 2,546.3 | | | 4,794.0 | | | 461.2 | | |

| Millennium Fund (4) | | | 12/2002 | | | 12/2008 | | | 6,000.0 | | | — | | | 2.5% | | | 6,000.0 | | | 14,123.1 | | | — | | | 6.1 | | | 1.3 | | |

| European Fund V | | | 3/2019 | | | 7/2025 | | | 6,415.0 | | | 3,810.0 | | | 1.8% | | | 2,605.0 | | | — | | | 2,605.0 | | | 3,130.9 | | | 56.4 | | |

| European Fund IV | | | 12/2014 | | | 3/2019 | | | 3,511.0 | | | 59.4 | | | 5.7% | | | 3,578.1 | | | 3,092.2 | | | 2,351.3 | | | 3,953.8 | | | 286.7 | | |

| European Fund III (4) | | | 3/2008 | | | 3/2014 | | | 5,513.9 | | | 154.1 | | | 5.2% | | | 5,359.8 | | | 10,524.4 | | | 336.7 | | | 300.3 | | | (14.9) | | |

| European Fund II (4) | | | 11/2005 | | | 10/2008 | | | 5,750.8 | | | — | | | 2.1% | | | 5,750.8 | | | 8,507.4 | | | — | | | 34.3 | | | (0.2) | | |

| Asian Fund III | | | 4/2017 | | | 7/2020 | | | 9,000.0 | | | 3,168.7 | | | 5.6% | | | 6,190.7 | | | 1,261.1 | | | 5,795.6 | | | 8,773.5 | | | 552.2 | | |

| Asian Fund II | | | 4/2013 | | | 4/2017 | | | 5,825.0 | | | — | | | 1.3% | | | 6,842.4 | | | 4,903.4 | | | 4,023.2 | | | 5,416.4 | | | 280.3 | | |

| Asian Fund (4) | | | 7/2007 | | | 4/2013 | | | 3,983.3 | | | — | | | 2.5% | | | 3,974.3 | | | 8,723.3 | | | 17.1 | | | 25.7 | | | 3.6 | | |

| China Growth Fund (4) | | | 11/2010 | | | 11/2016 | | | 1,010.0 | | | — | | | 1.0% | | | 1,010.0 | | | 867.9 | | | 466.2 | | | 409.0 | | | (7.4) | | |

| Next Generation Technology Growth Fund II | | | 12/2019 | | | 12/2025 | | | 2,088.3 | | | 1,225.5 | | | 7.2% | | | 863.6 | | | 0.9 | | | 859.0 | | | 1,009.5 | | | 19.9 | | |

| Next Generation Technology Growth Fund | | | 3/2016 | | | 12/2019 | | | 658.9 | | | 2.3 | | | 22.5% | | | 663.3 | | | 326.8 | | | 527.6 | | | 1,096.4 | | | 62.3 | | |

| Health Care Strategic Growth Fund | | | 12/2016 | | | 12/2021 | | | 1,331.0 | | | 844.7 | | | 11.3% | | | 577.0 | | | 116.1 | | | 482.8 | | | 1,042.0 | | | 73.2 | | |

| Global Impact Fund | | | 2/2019 | | | 2/2025 | | | 1,242.2 | | | 694.6 | | | 8.1% | | | 547.6 | | | — | | | 547.6 | | | 645.8 | | | 12.1 | | |

| Private Equity Funds | | | | | | | | | 106,008.5 | | | 29,917.1 | | | | | | 79,337.4 | | | 97,978.4 | | | 33,279.6 | | | 52,995.4 | | | 3,441.8 | | |

| Co-Investment Vehicles and Other | | | Various | | | Various | | | 12,069.8 | | | 4,285.7 | | | Various | | | 8,073.6 | | | 5,683.3 | | | 5,312.1 | | | 7,614.1 | | | 833.1 | | |

| Total Private Equity Funds | | | | | | | | | 118,078.3 | | | 34,202.8 | | | | | | 87,411.0 | | | 103,661.7 | | | 38,591.7 | | | 60,609.5 | | | 4,274.9 | | |

| Core Investment Vehicles | | | Various | | | Various | | | 10,693.6 | | | 3,326.3 | | | 33.0% | | | 7,367.3 | | | — | | | 7,367.3 | | | 10,481.9 | | | 131.4 | | |

| Energy Income and Growth Fund II | | | 6/2018 | | | 6/2021 | | | 994.2 | | | 515.0 | | | 20.1% | | | 488.9 | | | 9.6 | | | 479.7 | | | 487.7 | | | — | | |

| Energy Income and Growth Fund | | | 9/2013 | | | 6/2018 | | | 1,974.2 | | | — | | | 12.9% | | | 1,967.9 | | | 834.8 | | | 1,239.4 | | | 975.9 | | | — | | |

| Natural Resources Fund (4) | | | Various | | | Various | | | 887.4 | | | — | | | Various | | | 887.4 | | | 123.2 | | | 194.2 | | | 71.8 | | | — | | |

| Global Energy Opportunities | | | Various | | | Various | | | 914.1 | | | 63.4 | | | Various | | | 518.4 | | | 143.5 | | | 346.7 | | | 206.5 | | | — | | |

| Global Infrastructure Investors III | | | 6/2018 | | | 6/2024 | | | 7,193.3 | | | 4,019.1 | | | 3.8% | | | 3,390.1 | | | 216.0 | | | 3,328.7 | | | 3,294.9 | | | — | | |

| Global Infrastructure Investors II | | | 10/2014 | | | 6/2018 | | | 3,040.8 | | | 161.3 | | | 4.1% | | | 3,119.4 | | | 2,752.5 | | | 2,038.4 | | | 2,650.5 | | | 66.6 | | |

| Global Infrastructure Investors | | | 9/2011 | | | 10/2014 | | | 1,040.2 | | | 25.1 | | | 4.8% | | | 1,046.8 | | | 2,098.4 | | | 127.5 | | | 107.6 | | | 1.3 | | |

| Real Estate Partners Americas II | | | 5/2017 | | | 12/2020 | | | 1,921.2 | | | 494.4 | | | 7.8% | | | 1,662.9 | | | 519.3 | | | 1,399.4 | | | 1,556.5 | | | 44.1 | | |

| Real Estate Partners Americas | | | 5/2013 | | | 5/2017 | | | 1,229.1 | | | 147.8 | | | 16.3% | | | 1,011.1 | | | 1,357.9 | | | 186.6 | | | 84.4 | | | (1.6) | | |

| Real Estate Partners Europe | | | 9/2015 | | | 12/2019 | | | 713.7 | | | 190.0 | | | 9.1% | | | 599.5 | | | 172.1 | | | 510.7 | | | 656.0 | | | 21.1 | | |

| Real Estate Credit Opportunity Partners | | | 2/2017 | | | 4/2019 | | | 1,130.0 | | | 122.2 | | | 4.4% | | | 1,007.8 | | | 232.2 | | | 1,007.8 | | | 942.6 | | | — | | |

| Property Partners Americas | | | 12/2019 | | | (5) | | | 2,012.5 | | | 1,446.7 | | | 24.8% | | | 565.8 | | | 11.5 | | | 565.8 | | | 618.1 | | | 2.3 | | |

| Co-Investment Vehicles and Other | | | Various | | | Various | | | 7,594.3 | | | 4,478.8 | | | Various | | | 3,115.5 | | | 923.5 | | | 3,111.8 | | | 3,644.3 | | | 13.2 | | |

| Real Assets | | | | | | | | | 37,069.0 | | | 17,744.4 | | | | | | 19,724.9 | | | 9,406.5 | | | 14,880.1 | | | 15,650.7 | | | 147.0 | | |

For [added: a discussion of] KKR's legal proceedings, [added: see] the section entitled "Litigation" appearing in Note [removed: 16] [added: 24] "Commitments and Contingencies" [removed: to] [added: in] our [removed: consolidated] financial statements included elsewhere in this [removed: report] [added: report, which] is incorporated herein by reference.

Global Atlantic is involved in litigation and regulatory actions in the ordinary course of business.

Litigation, including class actions, or regulatory actions could result in the payment of substantial settlements, increase costs, require changes to operations, divert management attention, cause reputational harm or make it more challenging to attract and retain customers, employees and agents at Global Atlantic.

Prior to the Global Atlantic acquisition, Global Atlantic settled two class actions and a number of regulatory matters stemming from the conversion of administration of certain life insurance policies to a third-party service provider, Alliance-One Services, Inc. On January 29, 2021, Global Atlantic entered into a settlement agreement with Alliance-One resolving Global Atlantic's claims against Alliance-One arising from the conversion.

Certain regulatory matters relating to the conversion remain ongoing.

For the fiscal year ended December 31, [removed: 2020][added: 2021]

The aggregate market value of common stock of the registrant held by non-affiliates as of June 30, [removed: 2020,] [added: 2021,] was approximately [removed: $16.5] [added: $33.1] billion.

As of February [removed: 17, 2021,] [added: 24, 2022,] the registrant had [removed: 576,611,174] [added: 591,145,410] shares of common stock outstanding.

For the Year Ended December 31, [removed: 2020][added: 2021]

| Item 1A. | | | [Risk [removed: Factors](#i2228ff102a4e4d6f8c7b176d42676f7c_277)] [added: Factors](#i82942269e85547c6b206e864d0a7ce7e_322)] | | | [removed: [37](#i2228ff102a4e4d6f8c7b176d42676f7c_277)] [added: [42](#i82942269e85547c6b206e864d0a7ce7e_322)] | | |

| Item 1B. | | | [Unresolved Staff [removed: Comments](#i2228ff102a4e4d6f8c7b176d42676f7c_292)] [added: Comments](#i82942269e85547c6b206e864d0a7ce7e_340)] | | | [removed: [121](#i2228ff102a4e4d6f8c7b176d42676f7c_292)] [added: [126](#i82942269e85547c6b206e864d0a7ce7e_340)] | | |

| Item 4. | | | [Mine Safety [removed: Disclosures](#i2228ff102a4e4d6f8c7b176d42676f7c_232)] [added: Disclosures](#i82942269e85547c6b206e864d0a7ce7e_283)] | | | [removed: [121](#i2228ff102a4e4d6f8c7b176d42676f7c_232)] [added: [126](#i82942269e85547c6b206e864d0a7ce7e_283)] | | |

| Item 5. | | | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i2228ff102a4e4d6f8c7b176d42676f7c_298)] [added: Securities](#i82942269e85547c6b206e864d0a7ce7e_415)] | | | [removed: [122](#i2228ff102a4e4d6f8c7b176d42676f7c_298)] [added: [127](#i82942269e85547c6b206e864d0a7ce7e_415)] | | |

| Item 6. | | | [removed: \[Reserved\]] [added: [\[Reserved\]](#i82942269e85547c6b206e864d0a7ce7e_3530)] | | | [added: [129](#i82942269e85547c6b206e864d0a7ce7e_3530)] | | |

| Item 7. | | | [Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i2228ff102a4e4d6f8c7b176d42676f7c_124)] [added: Operations](#i82942269e85547c6b206e864d0a7ce7e_124)] | | | [removed: [125](#i2228ff102a4e4d6f8c7b176d42676f7c_124)] [added: [130](#i82942269e85547c6b206e864d0a7ce7e_124)] | | |

| Item 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i2228ff102a4e4d6f8c7b176d42676f7c_304)] [added: Risk](#i82942269e85547c6b206e864d0a7ce7e_421)] | | | [removed: [171](#i2228ff102a4e4d6f8c7b176d42676f7c_304)] [added: [201](#i82942269e85547c6b206e864d0a7ce7e_421)] | | |

| Item 8. | | | [Financial Statements and Supplementary [removed: Data](#i2228ff102a4e4d6f8c7b176d42676f7c_22)] [added: Data](#i82942269e85547c6b206e864d0a7ce7e_22)] | | | [removed: [175](#i2228ff102a4e4d6f8c7b176d42676f7c_22)] [added: [210](#i82942269e85547c6b206e864d0a7ce7e_22)] | | |

| Item 9. | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i2228ff102a4e4d6f8c7b176d42676f7c_322)] [added: Disclosure](#i82942269e85547c6b206e864d0a7ce7e_424)] | | | [removed: [250](#i2228ff102a4e4d6f8c7b176d42676f7c_322)] [added: [345](#i82942269e85547c6b206e864d0a7ce7e_424)] | | |

| Item 9A. | | | [Controls and [removed: Procedures](#i2228ff102a4e4d6f8c7b176d42676f7c_325)] [added: Procedures](#i82942269e85547c6b206e864d0a7ce7e_427)] | | | [removed: [250](#i2228ff102a4e4d6f8c7b176d42676f7c_325)] [added: [345](#i82942269e85547c6b206e864d0a7ce7e_427)] | | |

| Item 9B. | | | [Other [removed: Information](#i2228ff102a4e4d6f8c7b176d42676f7c_3451)] [added: Information](#i82942269e85547c6b206e864d0a7ce7e_3317)] | | | [removed: [251](#i2228ff102a4e4d6f8c7b176d42676f7c_3451)] [added: [346](#i82942269e85547c6b206e864d0a7ce7e_3317)] | | |

| Item 10. | | | [Directors, Executive Officers and Corporate [removed: Governance](#i2228ff102a4e4d6f8c7b176d42676f7c_343)] [added: Governance](#i82942269e85547c6b206e864d0a7ce7e_388)] | | | [removed: [252](#i2228ff102a4e4d6f8c7b176d42676f7c_343)] [added: [347](#i82942269e85547c6b206e864d0a7ce7e_388)] | | |

| Item 11. | | | [Executive [removed: Compensation](#i2228ff102a4e4d6f8c7b176d42676f7c_346)] [added: Compensation](#i82942269e85547c6b206e864d0a7ce7e_391)] | | | [removed: [257](#i2228ff102a4e4d6f8c7b176d42676f7c_346)] [added: [353](#i82942269e85547c6b206e864d0a7ce7e_391)] | | |

| Item 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i2228ff102a4e4d6f8c7b176d42676f7c_349)] [added: Matters](#i82942269e85547c6b206e864d0a7ce7e_394)] | | | [removed: [271](#i2228ff102a4e4d6f8c7b176d42676f7c_349)] [added: [370](#i82942269e85547c6b206e864d0a7ce7e_394)] | | |

| Item 13. | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i2228ff102a4e4d6f8c7b176d42676f7c_352)] [added: Independence](#i82942269e85547c6b206e864d0a7ce7e_397)] | | | [removed: [274](#i2228ff102a4e4d6f8c7b176d42676f7c_352)] [added: [373](#i82942269e85547c6b206e864d0a7ce7e_397)] | | |

| Item 14. | | | [Principal Accounting Fees and [removed: Services](#i2228ff102a4e4d6f8c7b176d42676f7c_355)] [added: Services](#i82942269e85547c6b206e864d0a7ce7e_400)] | | | [removed: [280](#i2228ff102a4e4d6f8c7b176d42676f7c_355)] [added: [380](#i82942269e85547c6b206e864d0a7ce7e_400)] | | |

| Item 15. | | | [removed: [Exhibits, Financial] [added: [Exhibits](#i82942269e85547c6b206e864d0a7ce7e_406) [and](#i82942269e85547c6b206e864d0a7ce7e_406) [Financial] Statement [removed: Schedules](#i2228ff102a4e4d6f8c7b176d42676f7c_361)] [added: Schedules](#i82942269e85547c6b206e864d0a7ce7e_406)] | | | [removed: [281](#i2228ff102a4e4d6f8c7b176d42676f7c_361)] [added: [381](#i82942269e85547c6b206e864d0a7ce7e_406)] | | |

| Item 16. | | | [Form 10-K [removed: Summary](#i2228ff102a4e4d6f8c7b176d42676f7c_364)] [added: Summary](#i82942269e85547c6b206e864d0a7ce7e_412)] | | | [removed: [289](#i2228ff102a4e4d6f8c7b176d42676f7c_364)] [added: [388](#i82942269e85547c6b206e864d0a7ce7e_412)] | | |

You can identify these forward-looking statements by the use of words such as "outlook," "believe," [added: "think,"] "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters.

Without limiting the foregoing, statements regarding the declaration and payment of dividends on common or preferred stock of KKR & Co. Inc.; the timing, manner and volume of repurchase of common stock pursuant to its repurchase program; [removed: the amount that The Global Atlantic Financial Group LLC (together with its subsidiaries, "Global Atlantic") will contribute to KKR's assets under management ("AUM"); KKR's ability to manage Global Atlantic's investments; operation of Global Atlantic following the closing of the transaction; the transaction's effects on KKR’s operating results;] expansion and growth opportunities and other synergies resulting from [removed: the Global Atlantic acquisition and other] acquisitions, reorganizations or strategic [removed: partnerships] [added: partnerships; and the timing and completion of the transactions contemplated by the Reorganization Agreement (as defined below)] may constitute forward-looking statements.

In this report, references to "KKR," "we," "us" and "our" refer to KKR & Co. Inc. and its subsidiaries, including [added: The] Global [removed: Atlantic,] [added: Atlantic Financial Group LLC ("TGAFG" and, together with its subsidiaries, "Global Atlantic"),] unless the context requires otherwise.

References to [removed: "KKR Group Partnership" for periods prior to the Reorganization mean KKR Fund Holdings L.P., KKR Management Holdings L.P. and KKR International Holdings L.P., collectively, and references to "KKR Group Partnership" for periods following the Reorganization mean KKR Group Partnership L.P. References to] a [removed: "KKR] [added: “KKR] Group Partnership [removed: Unit" mean] [added: Unit” refer to] (i) one Class A partner interest in each of KKR Fund Holdings L.P., KKR Management Holdings L.P. and KKR International Holdings L.P., collectively, for periods prior to [removed: the Reorganization] [added: prior to January 1, 2020,] and (ii) one Class A partner interest in KKR Group Partnership for periods [removed: following the Reorganization.][added: on and after January 1, 2020.]

[removed: References to "common stock" for] [added: For] periods [removed: prior] [added: between July 1, 2018 and December 31, 2019, references] to [removed: the Reclassification mean] [added: “common stock” refer to] Class A common stock of KKR & Co. [removed: Inc.] [added: Inc.,] and references to [removed: "Series] [added: “Series] I preferred [removed: stock"] [added: stock”] and [removed: "Series] [added: “Series] II preferred [removed: stock" for periods prior] [added: stock” refer] to [removed: the Reclassification mean] Class B common stock and Class C common stock of KKR & Co. Inc., respectively.

[added: Prior to July 1, 2018, KKR & Co. Inc. was a limited partnership named KKR & Co. L.P.] References to the [removed: "Series] [added: “Series] I preferred [removed: stockholder"] [added: stockholder” or “KKR Management”] are to KKR Management LLP, the holder of the sole [added: outstanding] share of our Series I preferred [removed: stock, which converted from a limited liability company named KKR Management LLC to a limited liability partnership in the Reorganization.][added: stock.]

Unless otherwise indicated, references to equity interests in [removed: KKR's] [added: KKR’s] business, or to percentage interests in [removed: KKR's] [added: KKR’s] business, reflect the aggregate equity interests in KKR Group Partnership [added: L.P. ("KKR Group Partnership"), which is the intermediate holding company that owns the entirety of KKR’s business,] and are net of amounts that have been allocated to [removed: our principals and other employees in respect of] the [removed: carried interest from KKR's business as part] [added: holders] of [removed: our "carry pool" and] certain minority [removed: interests.][added: interests, including our principals and carry pool participants (who are explained further below).]

References to [removed: "principals"] [added: “principals”] are to [removed: our senior] [added: current and former] employees who hold interests in [removed: KKR's] [added: KKR’s] business through KKR Holdings L.P. [removed: ("KKR Holdings") or another KKR entity, and references to our "senior principals" are to our senior employees who hold interests in the Series I preferred stockholder.][added: (“KKR Holdings”).]

On February 1, 2021, KKR completed its [removed: previously announced transaction to acquire] [added: acquisition of] Global Atlantic.

[removed: Upon closing] KKR holds all of the voting interests in Global Atlantic and owns [removed: 61.1%] [added: 61.5%] of the economic equity interests in Global Atlantic, [removed: which percentage is subject to change due to] [added: following the completion of] certain post-closing purchase price [removed: adjustments.][added: adjustments in the second quarter of 2021.]

We disclose certain financial measures in this report that are calculated and presented using methodologies other than in accordance with GAAP, including after-tax distributable earnings, distributable [removed: revenues, distributable expenses, distributable] operating earnings, fee related earnings ("FRE"), [removed: book assets, book liabilities,] [added: asset management segment revenues,] book value and book value per adjusted share.

These non-GAAP financial measures should not be considered as a substitute [removed: for, or superior to,] [added: for] similar financial measures calculated in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, where applicable, are included under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Reconciliations to GAAP Measures." This report also uses the terms [removed: AUM,] [added: assets under management ("AUM"),] fee paying assets under management [removed: ("FPAUM"), capital invested] [added: ("FPAUM")] and [removed: syndicated capital.][added: capital invested.]

These non-GAAP and operating metrics are defined in the section "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Non-GAAP [added: Performance Measures] and Other Operating [removed: and Performance] Measures."

References to our "funds" or our "vehicles" refer to investment funds, vehicles and accounts that are advised, [removed: sponsored or] managed [added: or sponsored] by one or more subsidiaries of KKR, including collateralized loan obligations ("CLOs") and commercial real estate mortgage-backed securities ("CMBS") vehicles, unless the context requires otherwise.

Unless otherwise indicated, references in this report to our [removed: fully exchanged and diluted common stock outstanding, or to our] [added: outstanding] common stock [removed: outstanding] on a fully exchanged and diluted [removed: basis,] [added: basis] reflect (i) actual shares of common stock outstanding, (ii) shares of common stock into which KKR Group Partnership Units held by KKR Holdings are exchangeable pursuant to the terms of the exchange agreement described [added: elsewhere] in this report, (iii) shares of common stock into which all outstanding shares of Series C Mandatory Convertible Preferred Stock are [removed: convertible] [added: convertible,] and (iv) shares of common stock issuable pursuant to any equity awards actually granted from the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan") or the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan" and, together with the 2010 Equity Incentive Plan, our "Equity Incentive [removed: Plans").][added: Plans"), including equity awards comprised of units in KKR Holdings II L.P. Our outstanding common stock on a fully exchanged and diluted basis does not include shares of common stock available for issuance pursuant to the Equity Incentive Plans for which equity awards have not yet been granted.]

The use of any defined term in this report to mean more than one [removed: entities, persons, securities] [added: entity, person, security] or other [removed: items] [added: item] collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group.

- conflicts of interest between our businesses and our [removed: funds;][added: clients;]

| 4.625% Subordinated Notes due 2061 of KKR Group Finance Co. IX LLC | | | KKRS | | | New York Stock Exchange | | |

| | | | [PART I](#i82942269e85547c6b206e864d0a7ce7e_346) | | | | | |

| Item 1. | | | [Business](#i82942269e85547c6b206e864d0a7ce7e_349) | | | [7](#i82942269e85547c6b206e864d0a7ce7e_349) | | |

| Item 2. | | | [Properties](#i82942269e85547c6b206e864d0a7ce7e_343) | | | [126](#i82942269e85547c6b206e864d0a7ce7e_343) | | |

| Item 3. | | | [Legal Proceedings](#i82942269e85547c6b206e864d0a7ce7e_280) | | | [126](#i82942269e85547c6b206e864d0a7ce7e_280) | | |

| | | | [PART II](#i82942269e85547c6b206e864d0a7ce7e_3209) | | | | | |

| Item 9C. | | | [D](#i82942269e85547c6b206e864d0a7ce7e_3521)[isclosure Regarding Forei](#i82942269e85547c6b206e864d0a7ce7e_3521)[gn Jurisdictions that Prevent Inspections](#i82942269e85547c6b206e864d0a7ce7e_3521) | | | [346](#i82942269e85547c6b206e864d0a7ce7e_3521) | | |

| | | | [PART III](#i82942269e85547c6b206e864d0a7ce7e_385) | | | | | |

| | | | [PART IV](#i82942269e85547c6b206e864d0a7ce7e_403) | | | | | |

| | | | | | | | | |

| [SIGNATURES](#i82942269e85547c6b206e864d0a7ce7e_298) | | | | | | [389](#i82942269e85547c6b206e864d0a7ce7e_298) | | |

CERTAIN TERMS USED IN THIS REPORT

Accordingly, the results of Global Atlantic included in our consolidated results of operations are from February 1, 2021 through December 31, 2021.

Global Atlantic conducts its insurance business through its subsidiaries that are regulated insurance companies.

References to our “senior principals” are to our senior employees who hold interests in the Series I preferred stockholder, including Mr. Henry Kravis and Mr. George Roberts (our "Co-Founders").

References to “non-employee operating consultants” for periods prior to January 1, 2020 refer to employees of KKR Capstone Americas LLC and its affiliates (“KKR Capstone”), which were then owned and controlled by their senior management and not subsidiaries or affiliates of KKR.

References to “KKR Group Partnership” for periods prior to January 1, 2020 refer to KKR Fund Holdings L.P., KKR Management Holdings L.P. and KKR International Holdings L.P., collectively, which were combined on that date to form KKR Group Partnership.

As of December 31, 2021, KKR Holdings owned, as a limited partner, 258,726,163 Group Partnership Units representing 30.2% of the then outstanding Group Partnership Units.

References to “principals” also includes our current employees who hold interests in KKR’s business through KKR Holdings II L.P. KKR Holdings II L.P. is a subsidiary of KKR & Co. Inc. but has an equity ownership in KKR Group Partnership similar to KKR Holdings.

As of December 31, 2021, KKR Holdings II L.P. owned, as a limited partner, less than 0.2% of the outstanding Group Partnership Units.

References to “carry pool participants” are to our current and former employees who hold interests in our “carry pool,” which refers to the carried interest generated by KKR’s business that is allocated to KKR Associates Holdings L.P. (“KKR Associates Holdings”), in which carry pool participants are limited partners.

Neither KKR Holdings nor KKR Associates Holdings is currently a subsidiary of KKR & Co. Inc.

On October 8, 2021, KKR entered into a Reorganization Agreement (the "Reorganization Agreement") with KKR Holdings, KKR Management, KKR Associates Holdings, and the other parties thereto.

Pursuant to the Reorganization Agreement, the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural and governance changes, including (a) the acquisition by KKR of KKR Holdings and all of the KKR Group Partnership Units held by it, (b) the future elimination of voting control by KKR Management and the Series I preferred stock held by it, (c) the future establishment of voting rights for all common stock on a one vote per share basis, including with respect to the election of directors, and (d) the future control of the carry pool by KKR.

For more information about the Reorganization Agreement, see "Certain Relationships and Related Transactions, and Director Independence—Reorganization Agreement" in this report.

References to “strategic investor partnerships” refers to separately managed accounts with certain investors, which have investment periods longer than our traditional funds and typically provide for investments across different investment strategies.

References to “hedge fund partnerships” refers to strategic partnerships with third-party hedge fund managers in which KKR owns a minority stake.

Any KKR entity (including any Global Atlantic entity) referenced herein is responsible for its own financial, contractual and legal obligations.

- use of the term perpetual capital;

- sponsoring a special purpose acquisition company ("SPAC");

- our capital markets activities; and

- termination of our investment advisory arrangements; and

| 6.75% Series A Preferred Stock | | | KKR PR A | | | New York Stock Exchange | | |

| 6.50% Series B Preferred Stock | | | KKR PR B | | | New York Stock Exchange | | |

| | | | [PART I](#i2228ff102a4e4d6f8c7b176d42676f7c_3352) | | | | | |

| Item 1. | | | [Business](#i2228ff102a4e4d6f8c7b176d42676f7c_244) | | | [7](#i2228ff102a4e4d6f8c7b176d42676f7c_244) | | |

| Item 2. | | | [Properties](#i2228ff102a4e4d6f8c7b176d42676f7c_295) | | | [121](#i2228ff102a4e4d6f8c7b176d42676f7c_295) | | |

| Item 3. | | | [Legal Proceedings](#i2228ff102a4e4d6f8c7b176d42676f7c_220) | | | [121](#i2228ff102a4e4d6f8c7b176d42676f7c_220) | | |

| | | | [PART II](#i2228ff102a4e4d6f8c7b176d42676f7c_19) | | | | | |

| | | | [PART III](#i2228ff102a4e4d6f8c7b176d42676f7c_340) | | | | | |

| | | | [PART IV](#i2228ff102a4e4d6f8c7b176d42676f7c_358) | | | | | |

| [SIGNATURES](#i2228ff102a4e4d6f8c7b176d42676f7c_328) | | | | | | [290](#i2228ff102a4e4d6f8c7b176d42676f7c_328) | | |

On January 1, 2020, KKR completed an internal reorganization (the "Reorganization"), which was undertaken to, among other purposes, simplify KKR's internal structure.

In the Reorganization, (i) KKR Management Holdings L.P. and KKR International Holdings L.P., which were former intermediate holdings companies for KKR's business, were combined with another intermediate holding company, KKR Fund Holdings L.P., which changed its name to KKR Group Partnership L.P. ("KKR Group Partnership") and became the sole intermediate holding company for KKR's business, (ii) the issuers of each series of KKR’s outstanding senior notes were contributed to KKR Group Partnership and the guarantees by KKR International Holdings L.P. and KKR Management Holdings L.P. under the senior notes were automatically and unconditionally released and discharged pursuant to the terms of the indentures governing such senior notes, with KKR Group Partnership remaining as a guarantor, and (iii) the ownership interests of certain operating subsidiaries of KKR Group Partnership were reorganized.

In connection with the 6.75% Series A Preferred Stock ("Series A Preferred Stock"), 6.50% Series B Preferred Stock ("Series B Preferred Stock") and 6.00% Series C Mandatory Convertible Preferred Stock ("Series C Mandatory Convertible Preferred Stock") of KKR & Co. Inc., KKR Group Partnership has series of preferred units issued and outstanding with economic terms designed to mirror those of the Series A Preferred Stock, Series B Preferred Stock and Series C Mandatory Convertible Preferred Stock, respectively.

On May 8, 2020, we amended and restated our certificate of incorporation and our bylaws (as amended and restated, our "certificate of incorporation" and our "bylaws," respectively) to, among other things, rename Class A common stock of KKR & Co. Inc. as common stock, and reclassify Class B common stock and Class C common stock of KKR & Co. Inc. into Series I preferred stock and Series II preferred stock, respectively (the "Reclassification").

KKR & Co. Inc. has one class of common stock authorized and outstanding.

Contemporaneously with the Reorganization, KKR acquired KKR Capstone Americas LLC and its affiliates ("KKR Capstone") on January 1, 2020.

References to "non-employee operating consultants" for periods prior to the acquisition mean

employees of KKR Capstone, who were not employees of KKR during such periods.

Prior to the acquisition, KKR Capstone was owned and controlled by its senior management and was not a subsidiary or affiliate of KKR.

KKR's historical financial results included in this report, including its audited consolidated financial statements as of and for the year ended December 31, 2020, do not reflect Global Atlantic's financial results and may not be indicative of KKR's financial results for future periods that will consolidate the results of Global Atlantic.

Our fully exchanged and diluted common stock outstanding does not include shares of common stock available for issuance pursuant to the Equity Incentive Plans for which equity awards have not yet been granted.

- underwriting, syndicating and securities placement activities; and

- ability of the Series I preferred stockholder to transfer its share of Series I preferred stock;

The number of holders of record of our common stock as of February [removed: 15, 2021] [added: 24, 2022] was 24.

Under our current dividend policy for common stock that we announced on February 8, [removed: 2021,] [added: 2022,] we expect to pay our common stockholders an annualized dividend of [removed: $0.58] [added: $0.62] per share of common stock, equal to a quarterly dividend of [removed: $0.145] [added: $0.155] per share of common stock, beginning with the dividend to be declared with respect to the first quarter of [removed: 2021.][added: 2022.]

On February 8, [removed: 2021,] [added: 2022,] we declared a regular dividend of [removed: $0.135] [added: $0.145] per share of common stock under our prior dividend policy for the quarter ended December 31, [removed: 2020.][added: 2021.]

- First, [removed: the] KKR Group Partnership will make distributions to holders of KKR Group Partnership Units, which consists of our wholly-owned corporate subsidiary (which acts as the general partner of KKR Group Partnership), KKR Holdings (which is not a subsidiary of ours) and KKR Holdings II L.P. [removed: (which] [added: ("KKR Holdings II," which] is our subsidiary that provides for restricted holdings units under our 2019 Equity Incentive [removed: Plan, "KKR Holdings II"),] [added: Plan),] in proportion to their percentage interests in KKR Group Partnership;

- Second, our wholly-owned corporate subsidiary will distribute to us the amount of any distributions that it receives from [removed: the] KKR Group Partnership, after deducting any applicable taxes; and

- Third, we will distribute to holders of our common [removed: stock, Series A Preferred Stock, Series B Preferred Stock] [added: stock] and Series C Mandatory Convertible Preferred Stock the amount of dividends declared by our board of directors from the distributions that we receive from our wholly-owned corporate subsidiary.

The limited partnership agreement of [removed: the] KKR Group Partnership provides for cash distributions, which are referred to as "tax distributions," to the partners of the partnership if we determine that the taxable income of the partnership will give rise to taxable income for its partners, including KKR Holdings and KKR Holdings II.

[removed: The] KKR Group Partnership may make tax distributions in the future, from time to time, to provide distributions to pay for the U.S. or non-U.S. tax liabilities of the partners of KKR Holdings and KKR Holdings II.

The declaration and payment of any dividends to holders of our common [removed: stock, Series A Preferred Stock, Series B Preferred Stock] [added: stock] or Series C Mandatory Convertible Preferred Stock are subject to the discretion of our board of directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation.

When KKR & Co. Inc. receives distributions from the KKR Group Partnership (the intermediate holding company of the KKR business), KKR Holdings and KKR Holdings II receives their pro rata share of such distributions from [removed: the] KKR Group Partnership.

Common Stock Repurchases in the Fourth Quarter of [removed: 2020][added: 2021]

In addition to the repurchases of common stock described above, subsequent to May 3, 2018, the repurchase program [removed: will be] [added: has been] used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards issued pursuant to our Equity Incentive Plans representing the right to receive shares of common stock.

From October 27, 2015 through December 31, [removed: 2020,] [added: 2021,] KKR has paid approximately [removed: $407] [added: $573] million in cash to satisfy tax withholding and cash settlement obligations in lieu of issuing shares of common stock or its equivalent upon the vesting of equity awards representing [removed: 19.2] [added: 22.5] million shares of common stock.

The table below sets forth the information with respect to repurchases made by or on behalf of KKR & Co. Inc. or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our common stock during the fourth quarter of [removed: 2020.][added: 2021.]

[removed: No] [added: During the fourth quarter of 2021, 1.8 million] shares of common stock were repurchased [removed: during the fourth quarter of 2020] and [removed: 1.1] [added: 1.0] million equity awards were [removed: retired during the fourth quarter of 2020.][added: retired.]

From inception of the repurchase program through December 31, [removed: 2020,] [added: 2021,] we have repurchased or retired a total of approximately [removed: 60.4] [added: 68.3] million shares of common stock under the program at an average price of approximately [removed: $19.29] [added: $23.45] per share.

| (1) Amounts have been reduced by retirements of equity awards occurring after May 3, 2018. On May 6, 2020, KKR announced the increase to the total available amount under the repurchase program to $500 million. [added: On December 27, 2021, KKR announced the increase to the total available amount under the repurchase program to $500 million.] | | | | | | | | | | | | | | | | | | | | | | | |

During the fourth quarter of [removed: 2020, 3,154,985] [added: 2021, 12,301,588] KKR Group Partnership Units were exchanged by KKR Holdings for an equal number of shares of our common stock.

On December 27, 2021, KKR announced an increase to the total available amount under its repurchase program to $500 million.

Prior to this increase, there was approximately $37 million remaining under the program.

As of February 24, 2022, there is approximately $163 million remaining under the program.

| Month #1 (October 1, 2021 to October 31, 2021) | | | — | | | | | | $ | — | | | | | 54,951,833 | | | | | | $ | 158,567 | |

| Month #2 (November 1, 2021 to November 30, 2021) | | | 591,467 | | | | | | $ | 77.62 | | | | | 55,543,300 | | | | | | $ | 112,654 | |

| Month #3 (December 1, 2021 to December 31, 2021) | | | 1,203,071 | | | | | | $ | 73.04 | | | | | 56,746,371 | | | | | | $ | 490,000 | |

| | | | 1,794,538 | | | | | | | | | | | | | | | | | | | | |

As of February 24, 2022, there are no pending elections to exchange any KKR Group Partnership Units held by KKR Holdings into shares of our common stock, although elections to make exchanges may be made after this date.

| Month #1 (October 1, 2020 to October 31, 2020) | | | — | | | | | | $ | — | | | | | 52,283,838 | | | | | | $ | 462,312 | |

| Month #2 (November 1, 2020 to November 30, 2020) | | | — | | | | | | $ | — | | | | | 52,283,838 | | | | | | $ | 462,312 | |

| Month #3 (December 1, 2020 to December 31, 2020) | | | — | | | | | | $ | — | | | | | 52,283,838 | | | | | | $ | 462,312 | |

| | | | — | | | | | | | | | | | | | | | | | | | | |

In February 2021, approximately 2.3 million KKR Group Partnership Units are expected to be exchanged by KKR Holdings into an equal number of shares of our common stock.

| Report of Independent Registered Public Accounting Firm | | | [removed: [176](#i2228ff102a4e4d6f8c7b176d42676f7c_307)] [added: [211](#i82942269e85547c6b206e864d0a7ce7e_301)] | | |

| Consolidated Statements of Financial Condition as of December 31, [removed: 2020] [added: 2021] and [removed: 2019] [added: 2020] | | | [removed: [178](#i2228ff102a4e4d6f8c7b176d42676f7c_25)] [added: [215](#i82942269e85547c6b206e864d0a7ce7e_25)] | | |

| Consolidated Statements of Operations for the Years Ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] | | | [removed: [180](#i2228ff102a4e4d6f8c7b176d42676f7c_31)] [added: [219](#i82942269e85547c6b206e864d0a7ce7e_28)] | | |

| Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] | | | [removed: [181](#i2228ff102a4e4d6f8c7b176d42676f7c_34)] [added: [221](#i82942269e85547c6b206e864d0a7ce7e_31)] | | |

| Consolidated Statements of Changes in Equity for the Years Ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] | | | [removed: [182](#i2228ff102a4e4d6f8c7b176d42676f7c_37)] [added: [222](#i82942269e85547c6b206e864d0a7ce7e_34)] | | |

| Consolidated Statements of Cash Flows for the Years Ended December 31, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] | | | [removed: [186](#i2228ff102a4e4d6f8c7b176d42676f7c_43)] [added: [225](#i82942269e85547c6b206e864d0a7ce7e_37)] | | |

| Notes to Consolidated Financial Statements | | | [removed: [188](#i2228ff102a4e4d6f8c7b176d42676f7c_46)] [added: [228](#i82942269e85547c6b206e864d0a7ce7e_40)] | | |

We have audited the accompanying consolidated statement of financial condition of KKR & Co. Inc. and its subsidiaries (the "Company") as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the "financial statements").

We also have audited the Company’s internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2020,] [added: 2021,] in conformity with accounting principles generally accepted in the United States of America.

Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in *Internal [removed: Control-Integrated] [added: Control — Integrated] Framework (2013)* issued by COSO.

[removed: Critical] [added: *Critical] Audit [removed: Matter][added: Matter Description*]

The critical audit [removed: matter] [added: matters] communicated below [removed: is a matter] [added: are matters] arising from the current-period audit of the financial statements that [removed: was] [added: were] communicated or required to be communicated to the audit committee and that (1) [removed: relates] [added: relate] to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit [removed: matter] [added: matters] below, providing [removed: a] separate [removed: opinion] [added: opinions] on the critical audit [removed: matter] [added: matters] or on the accounts or disclosures to which [removed: it relates.][added: they relate.]

Fair Value—Level III Investments—Refer to Notes 2, [removed: 4,] [added: 7,] and [removed: 5] [added: 9] to the financial statements

[removed: The Company] [added: KKR & Co. Inc. (“the Company”)] and the funds it sponsors and manages have [removed: investments] [added: Level III Investments] reported at fair value.

The fair values of certain investments are determined based on unobservable pricing [removed: inputs (“Level III Investments”).][added: inputs.]

These [added: Level III] investments have limited observable market activity and the inputs used in the determination of fair value require significant management judgment or estimation.

In addition, the Company recognizes carried interest from [removed: investment funds] [added: vehicles and accounts that are advised, sponsored or managed by one or more of its subsidiaries (“investment funds”)] based on cumulative fund performance to date.

We identified [removed: the] [added: certain] Level III Investments as a critical audit matter because of the unobservable pricing inputs management used to estimate fair value, and changes in the fair value of these investments directly impacts the amount of unrealized carried interest the Company accrues for the period as well as unrealized investment income recorded during the period.

- With the assistance of [added: our] fair value specialists, we evaluated management’s process for Level III [added: Investments] valuation, including their determination of the unobservable pricing inputs used to estimate fair value.

- We evaluated the Company’s historical ability to accurately estimate fair value of Level III Investments by comparing previous estimates of fair value to market [removed: transactions, subsequent to December 31, 2020, where appropriate.][added: transactions with third parties.]

[removed: February 19, 2021][added: | | | | | | | February 1, 2021 | | | | | |]

[added: | KKR & CO. INC. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)] (Amounts in Thousands, Except Share and Per Share Data) [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| | | | December 31, [removed: 2020] [added: 2021] | | | | | | December 31, [removed: 2019] [added: 2020] | | |

| Cash and Cash Equivalents | | | [added: | | | | | | | | | | | | | | | | | |] $ | [removed: 5,363,009] [added: —] | | | | | $ | [removed: 2,346,713] [added: —] | | [added: | | | $ | — | |]

| Restricted Cash and Cash Equivalents | | | [added: | | | | | | | | | | | | | | | | | |] 485,583 | | | | | | 74,262 | | | [added: | | | 196,365 | | |]

| Investments | | | [removed: 69,274,715] [added: 88,775,514] | | | | | | [removed: 54,936,268] [added: 69,274,715] | | |

| Due from Affiliates | | | [removed: 872,994] [added: 1,224,283] | | | | | | [removed: 717,399] [added: 872,994] | | |

| Other Assets | | | [removed: 2,665,336] [added: 2,886,313] | | | | | | [removed: 2,008,236] [added: 2,665,336] | | |

| Total Assets | | | $ | [removed: 79,806,502] [added: 264,285,440] | | | | | $ | [removed: 60,899,319] [added: 79,806,502] | |

| Debt Obligations | | | $ | [removed: 33,423,596] [added: 36,669,755] | | | | | $ | [removed: 27,013,284] [added: 33,423,596] | |

| Due to Affiliates | | | [removed: 325,177] [added: 462,722] | | | | | | [removed: 286,098] [added: 325,177] | | |

| [removed: Accounts Payable,] Accrued Expenses and Other Liabilities | | | [removed: 5,257,813] [added: 7,896,897] | | | | | | [removed: 3,097,563] [added: 5,257,813] | | |

| Total Liabilities | | | [removed: 39,006,586] [added: 206,146,220] | | | | | | [removed: 30,396,945] [added: 39,006,586] | | |

| Commitments and Contingencies (See Note [removed: 16)] [added: 24)] | | | | | | | | | | | |

| Stockholders' Equity [removed: (1)] | | | | | | | | | | | |

| Series A [added: Preferred Stock, $0.01 par value. 0] and [added: 13,800,000 shares, issued and outstanding as of December 31, 2021 and December 31, 2020, respectively. Series] B Preferred Stock, $0.01 par value. [removed: 13,800,000] [added: 0] and 6,200,000 shares, [removed: respectively,] issued and outstanding as of December 31, [removed: 2020] [added: 2021] and [removed: 2019.] [added: December 31, 2020.] | | | [removed: 482,554] [added: $] | [added: —] | | | | | [removed: 482,554] [added: $] | [added: 482,554] | |

| Series C Mandatory Convertible Preferred Stock, $0.01 par value. 23,000,000 shares issued and outstanding as of December 31, [added: 2021 and December 31,] 2020. | | | 1,115,792 | | | | | | [removed: —] [added: 1,115,792] | | |

| Series I Preferred Stock, $0.01 par value. 1 share authorized, 1 share issued and outstanding as of December 31, [removed: 2020] [added: 2021] and [removed: 2019.] [added: December 31, 2020.] | | | — | | | | | | — | | |

| | | | | | |

Critical Audit Matters

Global Atlantic Acquisition - Identifiable Intangible Assets – Refer to Note 3 to the financial statements

On February 1, 2021, KKR completed the acquisition of The Global Atlantic Financial Group LLC (“Global Atlantic”) for approximately $4.7 billion.

The Global Atlantic acquisition was accounted for as a business combination under Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations.

The purchase price has

been allocated to Global Atlantic’s assets acquired and liabilities assumed based on estimates of their fair values as of February 1, 2021, including intangible assets for the value of business acquired (VOBA), for $1,025 million and additional policy liabilities for the negative VOBA of $1,273 million.

VOBA represents the difference between the carrying value of the purchased in-force insurance contract liabilities at the time of the business combination and the estimated fair value of insurance and reinsurance contracts.

VOBA can be either positive or negative.

Positive VOBA is recorded in insurance intangibles.

Negative VOBA is recorded in the same financial statement line in the consolidated statement of financial condition as the associated policy liabilities.

We identified the valuation of VOBA and negative VOBA as a critical audit matter because the fair value determination required management to apply significant judgment and make significant assumptions.

Principal assumptions used by management in their determination of VOBA and negative VOBA included discount rates, mortality, persistency, and policyholder behavior.

Performing audit procedures to evaluate the reasonableness of these estimates and appropriateness of assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our actuarial and fair value specialists.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the valuation of VOBA and negative VOBA acquired as part of the Global Atlantic acquisition included the following, among others:

- We involved more senior, more experienced audit team members to perform audit procedures.

- We tested the design, implementation, and operating effectiveness of controls over the determination of the assumptions, including controls over the underlying data used in the valuation of VOBA and negative VOBA.

- We assessed the knowledge, skill, ability, and objectivity of management’s actuarial specialists and evaluated the work performed.

- With the assistance of our actuarial and fair value specialists, we evaluated management’s process in determining the valuation of VOBA and negative VOBA, including the inputs and assumptions used to estimate fair value.

- With the assistance of our actuarial and fair value specialists, we evaluated the judgements applied by management in the determination of principal assumptions used in the valuation of VOBA and negative VOBA, specifically discount rate, mortality, persistency, and policyholder behavior.

Policy Liabilities — Valuation of Policy Liabilities Associated with Certain Annuity Products — Refer to Notes 2, 8, 9, and 17 to the financial statements

*Critical Audit Matter Description*

Global Atlantic’s products include fixed-indexed annuity and variable annuity products, which contain equity indexed features that are considered embedded derivatives and are required to be measured at fair value.

Management’s estimate of embedded derivative liabilities in policy liabilities was $2.0 billion as of December 31, 2021.

In addition, certain fixed-indexed annuity contracts and variable annuity contracts are issued with guaranteed minimum withdrawal benefits (“GMWBs”).

Management’s estimate of GMWB policy liabilities was $1.0 billion as of December 31, 2021.

Management has also elected the fair value option to measure the policy liabilities for certain variable annuity contracts and management’s estimate was $0.5 billion as of December 31, 2021.

Management applies significant judgment in selecting assumptions used to estimate the value of embedded derivative liabilities associated with annuity products, GMWB policy liabilities, and variable annuity policy liabilities measured at fair value.

Changes in market conditions or variations in certain assumptions could result in significant fluctuations in these estimates.

Principal assumptions include lapse, withdrawal, benefit utilization, mortality, option budgets, future index credits, equity

market return, interest rates, and nonperformance risk assumptions.

Furthermore, the valuation of variable annuity policy liabilities measured at fair value is also based on complex calculations.

We identified the valuation of embedded derivative liabilities associated with annuity products, GMWB policy liabilities, and variable annuity liabilities measured at fair value as a critical audit matter because of the inherent uncertainty in selecting assumptions.

In addition, we have determined management’s valuation of variable annuity policy liabilities measured at fair value is also a critical audit matter because of the complexity of the calculation.

Performing audit procedures to evaluate the judgments made and the reasonableness of assumptions and models used in the valuations required a high degree of auditor judgment and an increased extent of auditor effort.

The audit effort included the use of professionals with specialized skill and knowledge, including our valuation, modeling, and actuarial specialists, to assist in performing these procedures and evaluating the audit evidence obtained from these procedures.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the valuation of embedded derivative liabilities associated with annuity products, GMWB policy liabilities, and the valuation of variable annuity policy liabilities measured at fair value included the following, among others:

- We involved more senior, more experienced audit team members to perform audit procedures.

KKR & CO. INC.

| Cash and Cash Equivalents Held at Consolidated Entities | | | 1,144,865 | | | | | | 816,441 | | |

See notes to financial statements.

| | | | December 31, 2019 | | | | | | | | | | | | | | |

| Cash and Cash Equivalents Held at Consolidated Entities | | | $ | 634,029 | | | | | $ | 112,122 | | | | | $ | 746,151 | |

| Investments | | | 14,948,237 | | | | | | 20,851,587 | | | | | | 35,799,824 | | |

| Other Assets | | | 100,221 | | | | | | 178,892 | | | | | | 279,113 | | |

| Total Assets | | | $ | 15,682,487 | | | | | $ | 21,187,128 | | | | | $ | 36,869,615 | |

| Debt Obligations | | | $ | 14,658,137 | | | | | $ | 2,481,937 | | | | | $ | 17,140,074 | |

| Accounts Payable, Accrued Expenses and Other Liabilities | | | 513,057 | | | | | | 109,575 | | | | | | 622,632 | | |

| Total Liabilities | | | $ | 15,171,194 | | | | | $ | 2,591,512 | | | | | $ | 17,762,706 | |

The statement below represents KKR & Co. Inc. as a partnership prior to the Conversion for the six months ended June 30, 2018:

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | KKR & Co. L.P. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | Common Units | | | Capital - Common Unitholders | | | Accumulated Other Comprehensive Income (Loss) | | | Total Capital - Common Units | | | Capital - Series A Preferred Units | | | Capital - Series B Preferred Units | | | | | | Noncontrolling Interests | | | | | | | | | | | | Total Equity | | | | | | Redeemable Noncontrolling Interests | | |

| Balance at January 1, 2018 | | | 486,174,736 | | | $ | 6,722,863 | | $ | (19,481) | | $ | 6,703,382 | | $ | 332,988 | | $ | 149,566 | | | | | $ | 12,866,324 | | | | | | | | | | | $ | 20,052,260 | | | | | $ | 610,540 | |

| Net Income (Loss) | | | | | | 850,483 | | | | | | 850,483 | | | 11,644 | | | 5,038 | | | | | | 1,294,467 | | | | | | | | | | | | 2,161,632 | | | | | | 7,658 | | |

| Changes in Consolidation | | | | | | | | | | | | — | | | | | | | | | | | | 370,307 | | | | | | | | | | | | 370,307 | | | | | | | | |

| Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units | | | 32,722,098 | | | 507,470 | | | (1,998) | | | 505,472 | | | | | | | | | | | | (505,472) | | | | | | | | | | | | — | | | | | | | | |

| Unit Repurchases | | | (2,207,300) | | | (52,212) | | | | | | (52,212) | | | | | | | | | | | | | | | | | | | | | | | | (52,212) | | | | | | | | |

| Capital Contributions | | | | | | | | | | | | — | | | | | | | | | | | | 2,410,722 | | | | | | | | | | | | 2,410,722 | | | | | | 349,451 | | |

| Capital Distributions (1) | | | | | | (167,078) | | | | | | (167,078) | | | (11,644) | | | (5,038) | | | | | | (1,550,955) | | | | | | | | | | | | (1,734,715) | | | | | | (5,502) | | |

| Balance at June 30, 2018 | | | 524,341,874 | | | $ | 7,940,529 | | $ | (30,699) | | $ | 7,909,830 | | $ | 332,988 | | $ | 149,566 | | | | | $ | 14,932,659 | | | | | | | | | | | $ | 23,325,043 | | | | | $ | 962,147 | |

(1)$0.34 per common unit, $0.843750 per Series A preferred unit, and $0.812500 per Series B preferred unit.

The statement below represents KKR & Co. Inc. as a corporation subsequent to the Conversion for the six months ended December 31, 2018:

| | | | Six Months Ended December 31, 2018 | | | | | | | | |

| KKR & Co. L.P. Partners' Capital - Common Unitholders | | | | | | | | | | | |

| Beginning of Period | | | $ | 7,940,529 | | | | | 524,341,874 | | |

| Reclassifications resulting from the Conversion | | | (7,940,529) | | | | | | (524,341,874) | | |

| Preferred Units | | | | | | | | | | | |

| Reclassifications resulting from the Conversion | | | (482,554) | | | | | | (20,000,000) | | |

| Reclassifications resulting from the Conversion | | | 482,554 | | | | | | 20,000,000 | | |

| Reclassifications resulting from the Conversion | | | 5,243 | | | | | | 524,341,874 | | |

| End of Period | | | 5,349 | | | | | | 534,857,237 | | |

| Issuance of Series I Preferred Stock resulting from the Conversion | | | — | | | | | | 1 | | |

| Issuance of Series II Preferred Stock resulting from the Conversion | | | 3,041 | | | | | | 304,107,762 | | |

| End of Period | | | 2,991 | | | | | | 299,081,239 | | |

| Reclassifications resulting from the Conversion | | | 7,932,245 | | | | | | | | |

| Common Stock Issued in Connection with the Purchase of an Investment | | | 120,023 | | | | | | | | |

| Total Equity | | | $ | 24,259,968 | | | | | | | |

We carried out an evaluation, under the supervision and with the participation of our management, including the Co-Chief Executive Officers and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, [removed: 2020.][added: 2021.]

Based upon that evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded that, as of December 31, [removed: 2020,] [added: 2021,] our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

Based on its assessment, our management has concluded that, as of December 31, [removed: 2020,] [added: 2021,] our internal control over financial reporting is effective.

No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during the fourth quarter of [removed: 2020] [added: 2021] that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART III

None.

PART III

| Henry R. Kravis | | | [removed: 77] [added: 78] | | | | | | [removed: Co-Chief Executive Officer, Co-Chairman] [added: Co-Executive Chairman] and Director | | |

| George R. Roberts | | | [removed: 77] [added: 78] | | | | | | [removed: Co-Chief Executive Officer, Co-Chairman] [added: Co-Executive Chairman] and Director | | |

| Joseph Y. Bae | | | [removed: 49] [added: 50] | | | | | | [removed: Co-President,] Co-Chief [removed: Operating] [added: Executive] Officer and Director | | |

| Scott C. Nuttall | | | [removed: 48] [added: 49] | | | | | | [removed: Co-President,] Co-Chief [removed: Operating] [added: Executive] Officer and Director | | |

| Mary N. Dillon | | | [removed: 59] [added: 60] | | | | | | Director | | |

| Joseph A. Grundfest | | | [removed: 69] [added: 70] | | | | | | Director | | |

| John B. Hess | | | [removed: 66] [added: 67] | | | | | | Director | | |

| Xavier B. Niel | | | [removed: 53] [added: 54] | | | | | | Director | | |

| Patricia F. Russo | | | [removed: 68] [added: 69] | | | | | | Director | | |

| Thomas M. Schoewe | | | [removed: 68] [added: 69] | | | | | | Director | | |

| Robert W. Scully | | | [removed: 71] [added: 72] | | | | | | Director | | |

| Robert H. Lewin | | | [removed: 41] [added: 42] | | | | | | Chief Financial Officer | | |

| David J. Sorkin | | | [removed: 61] [added: 62] | | | | | | General Counsel and Secretary | | |

Kravis co-founded KKR in 1976 and [removed: is] [added: serves as] our [removed: Co-Chairman and Co-Chief Executive Officer.][added: Co-Executive Chairman.]

He also serves as a director, chairman emeritus, or trustee of several cultural, professional, and educational institutions, including The Business Council (former chairman), Claremont McKenna College, Columbia Business School (co-chairman), Mount Sinai Hospital, the Partnership for New York City (former chairman), the Partnership Fund for New York City (founder), Rockefeller University (vice chairman), Sponsors for Educational Opportunity [removed: (chairman)] [added: (chairman),] and the Tsinghua School of Economics and Management in China.