KKR & Co. (KKR) 10-K risk factor changes: FY2022 vs FY2021

In any such case, the trading price of our securities could decline and you may lose all or part of your [removed: original] investment.

Difficult market and economic conditions can adversely affect our business in many ways, [removed: 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 [removed: negatively] [added: adversely] impact our net [removed: income and] [added: income,] cash [removed: flow and adversely affect our] [added: flow,] financial [removed: prospects] [added: condition] and [removed: condition.][added: prospects.]

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, 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, [added: and] currency exchange rates and [removed: controls, national and international political circumstances (including wars, terrorist acts or security 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.][added: controls.]

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

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

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

In the event of poor performance by [removed: existing] [added: our current] funds, [added: we would expect] our ability to raise new funds [removed: is] [added: to be significantly] impaired.

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

The outcome of such negotiations could result in our agreement to terms that are materially less favorable to us than [removed: for] prior [added: terms or terms of] funds [removed: we have managed.][added: advised by our competitors.]

Our current funds, including all [added: of] our 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: In addition, successor] [added: Successor] funds raised by us when such unfavorable circumstances [removed: described above] exist would also likely result in smaller funds than our comparable predecessor funds.

[added: Fund investors could seek to redeploy capital away from] certain of our credit or other [removed: 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.

Any of these developments could materially and adversely affect our future revenues, net income, cash [removed: flow, financial condition] [added: flow] or [removed: ability to retain our employees.][added: financial condition.]

[removed: See "—Our] [added: Our] inability to raise additional or successor funds (or raise successor funds of a comparable size as our predecessor [removed: funds) could have a material adverse impact on our business" and "—Our investors in future] [added: funds), or raise] funds [removed: may negotiate to pay us lower] [added: with as favorable] management fees, [removed: reimburse us for fewer expenses or change the] [added: expense reimbursement and] economic [removed: terms of our future funds,] [added: terms,] including with respect to transaction fees, management fees or monitoring fees, [removed: to be less favorable] [added: as compared] to [removed: us than those of our] existing funds, [removed: which] could materially and adversely affect our revenues or [removed: profitability."][added: profitability.]

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

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 [removed: materially,] [added: 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.

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

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

[removed: Finally,] [added: Conversely,] low interest rates related to monetary stimulus, economic stagnation or deflation may negatively impact expected returns on all types of investments as the demand for relatively higher return assets increases and the supply decreases.

[removed: As a result, adverse] [added: Adverse] conditions in financial markets as described above, as well as lower level of transaction activities involving our funds' investments, which can be unpredictable and outside [added: of] our control, may negatively impact both the frequency and size of fees generated by our capital markets business.

Actual or perceived stressed conditions, volatility and disruptions in financial asset classes or various capital markets can have an adverse effect on Global Atlantic, [removed: both] because [removed: such conditions may decrease the returns on, and value of, its investment portfolio and because] Global Atlantic's benefit and claim liabilities are sensitive to changing market factors, in particular Global Atlantic's fixed-indexed annuity and indexed universal life products and products with guaranteed minimum withdrawal or surrender or secondary guarantee features.

In times of economic hardship, Global Atlantic's policyholders may choose to defer paying insurance premiums, stop paying insurance premiums altogether or surrender their [removed: policies.][added: policies, or there could be an elevated rate of defaults within certain of Global Atlantic's investments.]

Global Atlantic has [removed: in the past] [added: from time to time] experienced an elevated incidence of life insurance claims [removed: as a result] [added: during periods] of increased unemployment, which impacts policyholder health and life expectancy and [removed: has] [added: may] adversely [removed: impacted] [added: impact] utilization of benefits relative to Global [removed: Atlantic’s] [added: Atlantic's] assumptions.

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

COVID-19 [removed: has caused, and continues to cause,] [added: caused] severe disruptions to the U.S. and global [removed: economics.][added: economies in the past and may in the future cause additional severe disruptions.]

[removed: In connection with these declarations, various governments] [added: Governments] around the world have instituted [removed: measures] [added: measures, at various times,] to slow the [removed: transmissions] [added: transmission] of COVID-19, which substantially [removed: restrict] [added: restricted] individual and business [removed: activities.][added: activities and could be reinstated in the future.]

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

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

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

[removed: We believe COVID-19’s] [added: The] adverse impact on our business, financial performance and operating results [removed: will] [added: by a public health crises, pandemic and epidemic could] be significantly driven by a number of factors that we are unable to predict or control, including, for example: new strains of [removed: COVID-19] [added: viruses] that cause [removed: the severity and duration of the pandemic to worsen] [added: severe illness] or [removed: extend; the pandemic’s impact on the U.S. and global economies;] [added: death like COVID-19;] the effectiveness of governmental responses to the [removed: pandemic,] [added: public health crisis, pandemic or epidemic,] including the extension, amendment or withdrawal of any programs or initiatives established by governments; [added: and] the timing and speed of economic [removed: recovery, including adverse economic pressures like rising inflation and less accommodative monetary stimulus; and the negative impact on our fund investors, vendors and other business partners that may indirectly adversely affect us.][added: recovery.]

The impact of [removed: COVID-19] [added: a public health crisis, pandemic or epidemic] may also exacerbate the other risks discussed in this report.

[removed: Changes] [added: Changes] in the debt financing markets may negatively impact the ability of [added: Global Atlantic or] our investment funds, their portfolio companies and strategies pursued with our balance sheet assets to obtain attractive financing for their [added: and our] 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 [removed: income.][added: income or negatively impact our business in other ways.]

In [removed: the event that] [added: addition, if] our funds are unable to obtain committed debt financing for potential acquisitions or can only obtain debt at an increased interest rate or on unfavorable terms, our funds may have difficulty completing otherwise profitable acquisitions or may generate profits that are lower than would otherwise be the case, either of which could lead to a decrease in the investment income earned by us.

Similarly, [added: the issuance of CLOs and] certain of the strategies pursued with our balance sheet assets rely on the use of leverage, including [removed: the issuance of CLOs, and other] [added: various] secured and unsecured borrowings.

Our ability to generate returns on these assets would be reduced to the extent that changes in market conditions, including [removed: one or more increases by the U.S. Federal Reserve of its benchmark interest rate or market driven] changes to [added: short-,] medium- or long-term interest rates, cause the cost of our financing to increase relative to the income that can be derived from the assets acquired [removed: and] [added: or] financed.

For example, [added: Global Atlantic's] calculations of required insurance capital may move with market movements and result in greater capital needs during economic downturns.

[removed: Transition] [added: Transition] away from LIBOR as a benchmark reference for interest rates may affect the cost of capital and [removed: requires] [added: require] amending or restructuring existing debt instruments and related hedging arrangements for us, our investment funds and our portfolio companies, and may impact the value of floating rate securities or loans based on LIBOR that we or our investment funds have held, all of which may result in additional costs or adversely affect our or our [removed: funds’] [added: funds'] liquidity, results of operations and financial [removed: condition.][added: condition.]

[removed: A substantial portion of] [added: Although we have amended the agreements governing our corporate revolving] credit [added: facility and our capital markets revolving credit facilities to remediate LIBOR-based loans, certain credit] assets held by our investment funds and our insurance subsidiaries and long-term indebtedness incurred by us, our investment funds, our insurance subsidiaries and our portfolio companies [removed: bears] [added: bear] interest at variable interest rates, [removed: primarily based on] [added: including rates linked to] LIBOR.

In January 2021, International Swaps and Derivatives Association [removed: also] amended the definitions used in derivative contracts to incorporate [removed: SOFR] [added: Secured Overnight Financing Rate ("SOFR")] as the successor rate to LIBOR.

[added: 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.

The following risk factors have been organized by category; however, many of the risks are interrelated, and as a result, should be read together to fully understand the risks involved with investing in our securities regardless of whether a cross-reference is included in any particular risk factor to another risk factor.

See also "Business—Competition," "Business—Regulation" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of certain business, competitive, regulatory, market and economic conditions that may affect our business, financial condition and results of operations.

The impact of these conditions may, and likely would, also exacerbate many of the other risks discussed in this report.

Periods of difficult conditions or events like the ones identified above may occur across one or more industries as well as various sectors or geographies, and, even if general market and economic or other conditions improve broadly, adverse conditions in particular countries, industries, sectors or asset classes may cause our business performance to suffer.

These financial markets and economic conditions are outside our control and may affect (i) the value of the investments and other assets held in our funds, in our insurance subsidiaries and on our balance sheet, (ii) opportunities for us (including our insurance companies) and our funds to make, exit and realize value from our investments, (iii) our ability to find suitable investments or secure financing for investments on attractive terms, (iv) our ability to raise capital for new or successor funds on attractive terms, and (v) our capital markets business including the frequency and size of fees generated by it.

Similarly, during periods of high interest rates, investors may favor certain investments like government debt, which they may view as producing a higher risk-adjusted return over investments in our funds, particularly if the spread between these other investments and investments in our funds declines.

Global equity and credit markets have a substantial effect on our financial condition and results of operations.

Tightening liquidity conditions in equity and credit capital markets affect the availability and cost of capital for us and our portfolio companies, and the increased cost of credit or degradation in debt financing terms may adversely impact our ability to identify and execute investments on attractive terms, which would adversely impact our ability to generate incentive fees and carried interest.

Market and economic conditions also impact our insurance business in ways in addition to impacting the value of its investment portfolio, as discussed above.

In the quarter ended December 31, 2022, Global Atlantic increased its current expected credit loss allowance on its loan portfolio in part as a result of changes in economic conditions.

For further discussion of the impact of difficult market and economic conditions on our investments, see "—Risks Related to the Assets We Manage—Various economic conditions and events outside of our control that are difficult to quantify or predict may have a significant impact on the valuation of our investments and, therefore, on our results of operations and financial condition."

Geopolitical developments and other local and global events outside of our control can, and periodically do, adversely impact us and our portfolio companies.

Geopolitical developments and other local and global events outside of our control, including, without limitation, trade conflict, sanctions (reciprocal or unilateral), trade barriers, civil unrest, national and international political circumstances (including outbreak of war, terrorist acts or security operations) can, and occasionally do, adversely impact our portfolio companies and our other investments around the world.

Even where an investment strategy does not directly target a region or a country that is experiencing one of the aforementioned events, we may still be materially adversely affected by the occurrence of such events as a result of indirect exposure we or our portfolio companies may have through other interconnectivities described in these risk factors, including supply chains, commodity prices and general macroeconomic

exposure.

We may be wholly ineffective in managing these risks.

These risks have increased in both scale and complexity over the past year due to intensifying geopolitical competition and conflicts, including the Russian invasion of Ukraine, heightened geopolitical tension between major world economies, heightened levels of political populism leading to regulatory volatility, and increased attention to trans-national threats, including climate change.

Any escalation in an actual or perceived trade war or barriers to investment between the U.S. and other countries or regions could chill or limit business opportunities, and otherwise negatively affect our investment opportunities, the performance of our funds, and the revenues and profitability of our portfolio companies.

Trade wars or other governmental actions related to tariffs or international trade agreements and policies that materially constrain cross-border flows of investment have the potential to increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future portfolio companies and adversely affect the revenues and profitability of companies whose businesses rely on goods imported from or exported to any country impacted by such policies.

In addition, tariff increases may adversely affect our suppliers and certain other customers of our portfolio companies, which could amplify any negative impact on our operating results or future cash flows.

Escalation in tensions between the U.S. (as well as other major economies) and China, the inability of the U.S. and China to reach further trade agreements, the continued use of reciprocal sanctions by each country, or broadening implementation of investment restriction regimes in or related to China, may contribute to a slowing of global economic growth and adversely affect the revenues and profitability of our funds' portfolio companies.

The U.S. government has implemented and expanded a number of economic and trade sanctions programs and export controls that target Chinese entities and nationals on national security grounds, and has imposed restrictions on acquiring and retaining interests in the securities of certain Chinese entities.

For example, the Russia-Ukraine conflict, including the sanctions imposed in response to Russia's invasion of Ukraine, have exacerbated and may further exacerbate these issues and trends, including with respect to oil and gas prices.

Policies, such as restrictions on exports of food, have also increased globally as a result of Russia's invasion of Ukraine.

The significant expansion of the sanctions lists in the EU, the UK, the U.S., Canada (and other jurisdictions) and targeting of major financial institutions, in addition to other measures to limit Russia's access to global financial markets and systems may impact our operations and valuations of our portfolio companies.

It is not possible to predict the broader or longer-term consequences of this conflict, which could include further sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on macroeconomic conditions, security conditions, currency exchange rates, exchange controls and financial markets.

Public health crises, such as COVID-19, may continue to occur from time to time, which could directly and indirectly adversely impact us and our portfolio companies.

It is impossible to predict with certainty the possible future business and economic ramifications arising from the COVID-19 pandemic or any other public health crisis, pandemic or epidemic, including but not limited to potential adverse impacts on: (i) our stock price, (ii) the valuations of our and our funds' investments and our financial results, (iii) our and our portfolio companies' business operations, as well as those of entities of which we or our funds are creditors, and our and their other counterparties, such suppliers and customers, including planning, strategy, execution, portfolio management, fundraising, and other aspects of business operations, (iv) our ability to conduct current and new business, raise new funds, write new insurance policies and complete investments, (v) our ability to successfully exit existing investments, (vi) the ability of us or our portfolio companies to meet our respective financial obligations, such as principal or interest payment obligations or satisfaction of financial covenants, (vii) portfolio companies in certain industries, including but not limited to, those in the travel, entertainment and hospitality industries, (viii) workplace, consumer, insurance, contract and other forms of litigation that exposes us, our portfolio companies, suppliers, customers, debtors and other counterparties to risks and claims of a magnitude and nature that we cannot now anticipate, (ix) mortality, morbidity and insurance policyholder behavior, such as surrenders or lapses, (x) operational risks, including heightened cybersecurity risk exacerbated by the COVID-19 pandemic and remote work by our employees, and (xi) our employees' well-being, morale and productivity and our ability to retain existing employees and hire new employees needed for our current business or the future growth of our business.

Changes in the debt financing markets, including the impact of changes in interest rates, may negatively affect our business in many ways, which could adversely impact our net income, cash flow, financial condition and prospects.

During periods of rising or higher interest rates, which occurred in 2022 and may continue to occur in 2023, certain investments with floating interest rate loans may have greater challenges in meeting 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.

Any of these events could result in defaults, foreclosures or bankruptcies, which would likely reduce the value of our investments and could result in decreased net income.

An increase in interest rates and other changes in the financial markets could also negatively impact the values of certain assets or investments and the ability of our balance sheet assets, funds and their portfolio companies, and finance vehicles to access the capital markets on attractive terms, which could adversely affect investment and realization opportunities, lead to lower-yielding investments and potentially decrease our net income.

For further information on the impact of interest rates on our valuation methodologies, see "—Risks Related to the Assets We Manage—Various economic conditions and events outside of our control that are difficult to quantify or predict may have a significant impact on the valuation of our investments and, therefore, on our results of operations and financial condition."

Transition away from LIBOR as a benchmark reference for interest rates may result in additional costs or adversely affect our or our funds' liquidity, results of operations and financial condition.

LIBOR and certain other floating rate benchmark indices to which our floating rate debt is tied are the subject of recent national, international and regulatory guidance and proposals for reform.

Furthermore, on December 16, 2022, the U.S. Board of Governors of the Federal Reserve System (the "Federal Reserve Board") adopted the final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR that will replace LIBOR in certain financial contracts after June 30, 2022.

In situations where our existing LIBOR-based contracts do not contain clear fallback language governing the transition to a successor reference rate, we or our funds could incur increased costs, including litigation-related costs, related to the determination of an appropriate successor rate, which could have an adverse impact on us, our investments and our funds.

Such uncertainty could give rise to widespread disputes,

- continue to support and grow our insurance business;

- grow and expand our businesses generally, including by acquiring or launching new, complementary or adjacent businesses;

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.

Such financial markets and economic conditions are outside our control and may affect the level and volatility of securities prices and liquidity and as a result, the value of our investments and our financial results.

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.

Our profitability may also be materially and adversely affected by our fixed costs and the possibility that we would be unable to scale back other costs within a time frame sufficient to match any decreases in net income relating to a downturn in market and economic conditions.

Unfavorable market and economic conditions may reduce opportunities for us and our funds to make, exit and realize value from 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 or secure financing for investments on attractive terms.

Such conditions may also result in reduced opportunities for 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, we and our funds may experience greater difficulty in realizing value from investments.

We generally raise capital for a successor fund following the substantial and successful deployment of capital from the existing fund.

Fund investors may also seek to redeploy capital away from

Even if economic and market conditions do improve broadly, adverse conditions in particular sectors may also cause our performance to suffer.

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

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 March 2020, the World Health Organization declared COVID-19 to be a pandemic and the United States declared a national emergency due to the outbreak.

The number of COVID-19 cases rebounded in many countries around the world throughout the year, including the United States, especially after more infectious strains of the virus have spread globally.

Although a number of vaccines for COVID-19 have been developed, the effectiveness of widespread vaccination is uncertain, and these vaccines have been, and may in the future be, less effective against any new mutated strains of the virus.

We are monitoring developments relating to the global spread of COVID-19 and continuing to assess the potential for adverse impact on our business, including the investment funds we manage and the portfolio companies owned by us and our funds.

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

The scale and scope of the COVID-19 pandemic may heighten the potential adverse effects on our business, financial performance and operating results, which may be material and affect us in ways that we cannot foresee at this time.

Many of the adverse ways in which COVID-19 may impact us have already materialized and adversely affected (or may in the future materialize and adversely affect) our stock price, our portfolio valuations, and the operations of our businesses and the businesses of our portfolio companies, as well as the businesses of entities of which we or our funds are creditors, and our and their other counterparties, including suppliers and customers.

These risks may, in the future, become even more significant than is currently the case or than is currently anticipated.

Although it is impossible to predict with certainty the potential full magnitude of the business and economic ramifications, COVID-19 has impacted, and may further impact, our business in various ways, including but not limited to:

- Difficult market and economic conditions may adversely impact the valuations of our and our funds' investments, particularly if the value of an investment is determined in whole or in part by reference to public equity markets.

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

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;

- 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 with whom we or our funds have loaned money or otherwise do 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 outsized effects on particular business sectors, including for example, severe supply chain disruptions.

The future trajectory of the COVID-19 crisis is subject to a complex interplay of epidemiological, technological, social, psychological, economic and political factors that are generally beyond our ability to forecast or control.

In this environment, historical comparisons may be of little or no value, while the risk and uncertainty associated with a large number of business decisions are materially increased;

- Future limitations on travel and social distancing requirements implemented in response to COVID-19 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

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

Further, the COVID-19 crisis may cause fund investors or policyholders to change their investment strategies in manners that we cannot now foresee, and that may additionally and negatively affect our ability to raise funds or write new insurance policies from traditional or other sources;

- While the market dislocation caused by COVID-19 would expect to present attractive investment opportunities, due to increased volatility in the financial markets, we may not be able to complete those investments;

- Depending on the future impacts of 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;

- Our portfolio companies are facing or may face in the future increased credit and liquidity risk due to volatility in financial markets, reduced revenue streams, and limited or higher cost of access to preferred sources of funding, which may result in potential impairment of our or our funds’ equity investments.

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

We and our funds may experience similar difficulties, and certain funds have been subject to margin calls when the value of securities that collateralize their margin loan decreased substantially;

- Borrowers of loans, notes and other credit instruments in our credit funds’ portfolio 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 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 returns.

[removed: *Economic] [added: Economic] and Market [removed: Conditions*][added: Conditions]

[removed: Economic Conditions.][added: Economic Conditions]

Global and regional economic [removed: conditions, including those caused by the COVID-19 pandemic,] [added: conditions can each] have substantial impact on our [added: business,] financial condition and results of [removed: operations, impacting] [added: operations in various ways, including] the [removed: values] [added: valuations] of [removed: the investments we make,] our [added: investments, our] ability to exit these investments profitably, our ability to raise capital from investors, and our ability to make new investments.

[removed: In February 2022,] [added: As noted above, the] actions taken by Russia in the Ukraine [added: starting in February 2022] have [removed: also led to uncertainty and volatility.][added: caused volatility in the commodities markets.]

[removed: Estimated real] [added: Real] GDP in China [removed: grew] [added: is estimated to have increased] by [removed: 8.0%] [added: 3.0%] for the year ended December 31, [removed: 2021,] [added: 2022,] compared to growth of [removed: 2.2%] [added: 8.4%] reported for the year ended December 31, [removed: 2020.][added: 2021.]

[removed: Estimated core] [added: Core] inflation in China was [removed: 1.0%] [added: 0.7%] on a year-over-year basis as of December 31, [removed: 2021,] [added: 2022,] down from [removed: 2.5%] [added: 1.2%] on a year-over-year basis as of December 31, [removed: 2020.][added: 2021.]

In Japan, real GDP growth for the year ended December 31, [removed: 2021] [added: 2022,] is estimated to [removed: be 1.8%, up] [added: have been 1.3%, down] from [removed: -4.6%] [added: 2.3%] for the year ended December 31, [removed: 2020.][added: 2021.]

[removed: Core] [added: In Japan, core] inflation [added: rose to 1.6%] on a year-over-year basis [removed: in Japan is estimated to have been -0.2%] as of December 31, [removed: 2021, down] [added: 2022, up] from [removed: 0%] [added: -1.3%] on a year-over-year basis as of December 31, [removed: 2020.][added: 2021.]

[removed: In Japan, the] [added: The] short-term benchmark interest rate set by the Bank of Japan was -0.1% as of December 31, [removed: 2021,] [added: 2022,] unchanged from December 31, [removed: 2020.][added: 2021.]

[removed: As noted above, the U.S.] [added: The] Federal Reserve [added: Board] has [added: continued to raise interest rates and has] indicated that it is prepared to take [added: decisive] action to manage inflation, including raising [removed: interests rates, tapering its asset purchases] [added: interest rates further] and shrinking the size of its balance sheet.

[removed: In addition, commodity prices are generally expected to rise in inflationary environments, and] [added: Relatedly,] foreign exchange rates are often affected by [removed: countries] [added: countries’] monetary and fiscal responses to inflationary trends.

The [removed: Russian-Ukraine] [added: Russia-Ukraine] conflict, including the sanctions imposed in response to Russia's [removed: actions in February 2022,] [added: invasion of Ukraine, have exacerbated and] may [added: further] exacerbate these issues and [removed: trends.][added: trends globally, including by increasing oil and gas prices and price volatility.]

Areas that have [removed: ongoing] central bank quantitative easing [added: or tightening] campaigns [removed: and comparatively low] [added: affecting their] interest rates relative to the United States could potentially experience further currency volatility [removed: and weakness] relative to the U.S. dollar.

[removed: Higher interest rates,] [added: In our insurance segment,] periods of [removed: changes in rates and lower] [added: rising or higher interest] rates [removed: each] [added: as we are currently experiencing] may result in differing impacts on Global Atlantic’s business.

In our asset management [removed: business,] [added: segment,] 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.

[added: - Equity Markets.] For the year ended December 31, [removed: 2021,] [added: 2022,] global equity markets were [removed: positive,] [added: negative,] with the S&P 500 [removed: up 29.5%] [added: down 18.1%] and the MSCI World Index [removed: up 22.5%] [added: down 17.7%] 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: 17.2] [added: 21.7] as of December 31, [removed: 2021, decreasing] [added: 2022, increasing] from [removed: 22.8] [added: 17.2] as of December 31, [removed: 2020.][added: 2021.]

[removed: Many] [added: In addition, many] of our [removed: investments, particularly in asset management,] [added: investments] are in non-investment grade credit [removed: instruments, and, particularly in insurance, in] [added: instruments and] investment grade credit instruments.

[removed: Consequently, any decrease in the value of credit instruments that we have] invested in or any increase in the cost of credit financing reduces our returns and decreases our net income.

[added: - Credit Markets.] During the year ended December 31, [removed: 2021,] [added: 2022,] U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) [removed: tightened] [added: widened] by [removed: 5] [added: 40] basis points and U.S. high-yield corporate bond spreads (BofAML HY Master II Index) [removed: tightened] [added: widened] by [removed: 77] [added: 171] basis points.

The non-investment grade credit indices were [removed: up] [added: down] during the year ended December 31, [removed: 2021,] [added: 2022,] with the S&P/LSTA Leveraged Loan Index [removed: up 5.2%] [added: down 0.6%] and the BAML US High Yield Index [removed: up 5.4%.][added: down 11.2%.]

During the year ended December 31, [removed: 2021,] [added: 2022,] 10-year government bond yields rose [removed: 60] [added: 236] basis points in the United States, rose [removed: 77] [added: 6] basis points in [removed: the United Kingdom,] [added: China,] rose [removed: 39] [added: 35] basis points in [removed: Germany, fell 37] [added: Japan, rose 270] basis points in [removed: China,] [added: the UK] and rose [removed: 5] [added: 275] basis points in [removed: Japan.][added: Germany.]

[added: - Foreign Exchange Rates.] For the year ended December 31, [removed: 2021,] [added: 2022,] the euro fell [removed: 6.9%,] [added: 5.8%,] the British pound [removed: fell 1.0%,] [added: 10.7%,] the Japanese yen [removed: fell 10.3%,] [added: 12.2%,] and the Chinese renminbi [removed: rose 2.7%,] [added: fell 7.9%,] respectively, relative to the U.S. dollar.

Our [removed: Private Markets] [added: Real Assets business line] portfolio contains energy real asset investments, and certain of our other Private [removed: Markets] [added: Equity, Real Assets] and [removed: Public Markets] [added: Credit and Liquid Strategies business line] strategies have investments in or related to the energy sector.

[added: - Commodity Markets.] During the year ended December 31, [removed: 2021,] [added: 2022,] the 3-year forward price of WTI crude oil increased approximately [removed: 37%,] [added: 11.3%,] and the 3-year forward price of natural gas increased [added: from] approximately [removed: 17%.][added: $3.43 per MMBtu to $4.99 per MMBtu as of December 31, 2021 and December 31, 2022.]

[removed: In addition, to] [added: To] the extent energy real asset investments are directly held by our balance sheet, price movements can have an amplified impact on our financial results, as we [removed: would] directly bear the full extent of such gains or losses, subject to hedging.

We consolidate the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of our investment 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: collateralized financing entities ("CFEs").][added: CFEs.]

We acquired Global Atlantic on February 1, 2021; accordingly, the results of Global Atlantic's insurance operations included in our consolidated results of operations for the year ended December 31, 2021 are from February 1, 2021 (the closing date of the [removed: acquisition)] [added: GA Acquisition)] through December 31, 2021.

For a further discussion of [removed: our consolidation policies,] [added: this guidance,] see Note 2 "Summary of Significant Accounting [removed: Policies"] [added: Policies—Future application of accounting standards"] in our financial statements.

[removed: Key] [added: Basis of Accounting and Key] Financial Measures [removed: Under GAAP - Asset Management][added: under GAAP]

[removed: *Fees] [added: Fees] and [removed: Other*][added: Other]

Fees and other consist primarily of (i) management and incentive fees from providing investment management services to unconsolidated funds, CLOs, other vehicles, and separately managed accounts; (ii) transaction fees earned in connection with successful investment transactions and from capital markets activities; (iii) monitoring fees from providing services to portfolio companies; (iv) expense reimbursements from certain investment funds and portfolio companies; [removed: (v) revenue earned by oil] and [removed: gas entities that are consolidated; and (vi)] [added: (v)] consulting fees.

[removed: These] fees are based on the contractual terms of the governing agreements and are recognized when earned, which coincides with the period during which the related services are performed and in the case of transaction fees, upon closing of the transaction.

[removed: *Capital] [added: Capital] Allocation-Based Income [removed: (Loss)*][added: (Loss)]

For a further discussion [removed: of] [added: about] our [removed: revenue] [added: critical accounting] policies, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included [removed: elsewhere] in this report.

Compensation and Benefits expense includes (i) base cash compensation consisting of salaries and wages, (ii) benefits, (iii) carry pool allocations, (iv) equity-based [removed: compensation,] [added: compensation] and (v) discretionary cash bonuses.

Because these ranges are applied to applicable [removed: distributable] [added: asset management segment] revenue components independently, and on an annual basis, the amount paid as a percentage of total [removed: distributable revenues] [added: asset management segment revenue] will vary and will, for example, likely be higher in a period with relatively higher realized carried interest and lower in a period with relatively lower realized carried interest.

We decide whether to pay a discretionary cash bonus and determine the percentage of applicable revenue components to pay compensation only upon the [added: occurrence of the realization event.]

Assuming that we had accrued compensation of (i) 65% of the unrealized carried interest earned by the funds that allocate 40% and 43% to the carry pool and (ii) 15% of the unrealized net gains in our Principal Activities business line (in each case at the mid-point of the ranges above), KKR & Co. Inc. Stockholders’ Equity – [removed: Series I and II Preferred,] Common Stock as of December 31, [removed: 2021] [added: 2022] would have been reduced by approximately [removed: $2.66] [added: $1.46] per share, compared to our reported [removed: $27.64] [added: $19.29] per share on such date, and our book value as of December 31, [removed: 2021] [added: 2022] would have been reduced by approximately [removed: $2.58] [added: $1.42] per adjusted share, compared to our reported book value of [removed: $28.77] [added: $26.73] per adjusted share on such date.

On the Sunset Date [removed: (as defined in the Reorganization Agreement),] [added: (which will not be later than December 31, 2026),] KKR will acquire control of KKR Associates Holdings and will commence making decisions regarding the allocation of carry proceeds pursuant to the limited partnership agreement of KKR Associates Holdings.

Our asset management and insurance businesses are materially affected by the economic conditions of, and financial markets in, the United States, the EU, China, Japan, and other countries.

During the year ended December 31, 2022, the global economy continued to recover from the impact of the COVID-19 pandemic; however, many countries and regions, including the United States, showed signs of slowing economic activity, potentially indicating the early stages of a recession.

Economic activity began to be adversely impacted by the effects of monetary and fiscal policy tightening as years of fiscal stimulus from governments and accommodative monetary policy from global central banks began to wane as central banks took measures to combat significant inflationary pressures at multi-decade highs in many major economies around the world.

Inflation presented a headwind for many country and regional economies in which we operate.

As a result of these and other actions by central banks, overall macro conditions began to transition by the fourth quarter of 2022 with less focus on inflation’s impact on repricing capital markets and moving towards a period where high rates and inflation began to put significant pressure on corporate profits and consumer balance sheets.

By year-end 2022, inflation began to show signs of peaking on a year-over-year basis in the U.S. and in certain other regions, but remained elevated in absolute terms.

Labor disputes, shortages of material and skilled labor, work stoppages and increasing labor costs can also adversely impact us and the assets we manage.

Despite various economic headwinds, several key economic indicators in the U.S., including employment have demonstrated resilience in 2022.

During 2022, the growth in economic activity and demand for goods and services, alongside supply chain complications, contributed to these significant inflationary pressures.

Various supply bottlenecks ranging from dynamic zero-COVID policy to shifting Russia-Ukraine supply chains to U.S. domestic semiconductor industry output shortages as a result of restrictions on trade with Chinese semiconductor companies contributed to inflationary pressure throughout much of 2022.

In the United States and many other countries, laws designed to protect national security or to restrict foreign direct investment continued to proliferate in 2022, which adversely affected the business and investment environments in various ways.

These and related concerns, such as rising interest rates and geopolitical uncertainty in countries such as China, Russia, Belarus and the Ukraine, contributed to substantial market volatility, equity and credit market declines and increased pressures on labor supply.

In the Eurozone, disruptions to European energy markets and Russia’s ongoing invasion of Ukraine adversely affected the business environment.

Protectionist policies, such as restrictions on exports of food, have also increased globally as a result of Russia's invasion of Ukraine.

As of December 31, 2022, we have no investments in any portfolio companies whose executive

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headquarters are located in Russia, Ukraine or Belarus, and we believe that the direct exposure of our investment portfolio to Russia, Ukraine and Belarus is insignificant.

In addition, the Chinese economy experienced headwinds related to the ongoing slowdown in China’s property sector and the effects of the government’s zero-COVID policies.

In Japan, the economic recovery from COVID-19 continued, despite higher energy costs and significant volatility in currency markets.

Several relevant key economic indicators in the U.S. and in other countries and areas in which our business operates include:

- Inflation. The U.S. core consumer price index rose 5.7% on a year-over-year basis as of December 31, 2022, up from 5.5% on a year-over-year basis as of December 31, 2021.

Euro Area core inflation was 5.2% as of December 31, 2022, up from 2.6% as of December 31, 2021.

- Interest Rates. The effective federal funds rate set by the Federal Reserve Board was 4.33% as of December 31, 2022, up from 0.1% as of December 31, 2021.

The Federal Reserve raised interest rates by 75 basis points in November, and 50 basis points in December, leading to increased market volatility.

The short-term benchmark interest rate set by the European Central Bank was 2.5% as of December 31, 2022, up from 0.0% as of December 31, 2021.

- GDP. In the United States, real GDP is estimated to have expanded by 2.1% for the year ended December 31, 2022, compared to an expansion of 5.9% for the year ended December 31, 2021.

Euro Area real GDP growth was 3.2% as of December 31, 2022, up from 5.3% as of December 31, 2021.

- Unemployment. The U.S. unemployment rate was 3.5% as of December 31, 2022, down from 3.9% as of December 31, 2021.

The unemployment rate in China was 5.5% as of December 31, 2022, up from 5.1% as of December 31, 2021.

The unemployment rate in Japan was 2.5% as of December 31, 2022, down from 2.7% as of December 31, 2021.

In addition, Euro Area unemployment was 6.5% as of December 31, 2022, up from 7.0% as of December 31, 2021.

Market Conditions

Equity, credit, commodity and foreign exchange markets in the United States and in other countries and areas in which we have made investments each can have a material effect on our financial condition and results of operations.

Volatility across global equity and credit markets, alongside shifting liquidity conditions in new issue activity across equity and non-investment grade credit markets, have adversely impacted (and may continue to adversely impact) our financial results and the volume of capital markets activity, the level of transaction fees that our Capital Markets business line is able to earn, the valuation of our portfolio companies, the investment income that we recognize and our ability to deploy our, and our funds', capital.

For our investments that are publicly listed and thus have readily observable market prices, global equity market price declines had (and may continue to have) a direct impact on valuation.

For many other of our investments, these markets had an indirect materially adverse impact on many of our investment valuations as we typically utilize market multiples as a critical input to ascertain fair value of our investments that do not have readily observable market prices.

Many of our funds invest or have the flexibility to invest a significant portion of their assets in the equity, debt, loans or other securities of issuers that are based outside of the United States.

A substantial amount of these investments consist of private equity investments made by our private equity funds.

For example, as of December 31, 2022, approximately 50% of the capital invested in those funds was attributable to non-U.S. investments.

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.

The historical consolidated financial data discussed below reflects the historical results and financial position of KKR and does not reflect the Global Atlantic acquisition.

Impact of COVID-19. The outbreak of COVID-19 continues to impact the United States and other countries throughout the world.

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 condition".

As a global investment firm, we are affected by financial and economic conditions globally.

Financial and economic conditions in the United States, European Union, Japan, China, and other major economies are significant contributors to the global economy.

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

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.

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

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.

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

These and other key issues could have repercussions across regional and global financial markets, which could adversely affect the valuations of our investments.

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.

Other key issues include (i) 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, economic nationalist sentiments, tensions surrounding socioeconomic inequality issues, and partisan sentiments in the United States, all of which have potentially global ramifications with regards to policy, (iv) regulatory changes regarding, for example, taxation, international trade, cross-border investments, immigration, stimulus programs and rising levels of debt, (v) increased volatility and/or downturn in equity or credit markets, (vi) unexpected shifts in central banks' monetary policies, and (vii) technological advancements and innovations that may disrupt marketplaces and businesses.

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 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.

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.”

Equity and Credit Markets.

Global equity and credit markets have a substantial effect on our financial condition and results of operations.

In general, a climate of reasonable interest rates and high levels of liquidity in the debt and equity capital markets provide a positive environment for us to generate attractive investment returns, which also impacts our ability to generate incentive fees and carried interest.

Periods of volatility and dislocation in the capital 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.

Low interest rates related to monetary stimulus and economic stagnation may negatively impact expected returns on all types of investments.

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.

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.

For a discussion of our valuation methods, see “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” and see also “—Critical Accounting Policies—Fair Value Measurements—Level III Valuation 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.

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.

Credit markets can also impact valuations because a discounted cash flow analysis is generally used as one of the methodologies to ascertain the fair value of our investments that do not have readily observable market prices.

In addition, with respect to our credit instruments, tightening credit spreads are generally expected to lead to an increase, and widening credit spreads are generally expected to lead to a decrease, in the value of these credit investments, if not offset by hedging or other factors.

In addition, the significant widening of credit spreads is also typically expected to negatively impact equity markets, which in turn would negatively impact our portfolio and us as noted above.

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.

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 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.”

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 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 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."

Foreign Exchange Rates.

The appreciation or depreciation of the U.S. dollar is expected to contribute to a decrease or increase, respectively, in the U.S. dollar value of our non-U.S. investments to the extent unhedged.

Global Atlantic has material exposure to market volatility in interest rates, credit [removed: spreads] [added: spreads,] and equity prices through its insurance liabilities, many of which are structured to have exposure to market level changes, its investment portfolio and its hedge program.

[removed: Asset Management][added: *Asset Management*]

[removed: Insurance][added: *Insurance*]

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

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

KKR has a [removed: risk] [added: global conflicts] and [removed: operations] [added: compliance] committee comprised of senior employees from across our Asset Management business and operations, and it [removed: includes] [added: includes, among others,] our Chief [removed: Operating] [added: Financial] Officer, Chief [removed: Financial] [added: Legal] Officer, General [removed: Counsel,] [added: Counsel] and Chief Compliance Officer.

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

[removed: KKR's] [added: The] global conflicts and compliance committee [removed: is responsible for analyzing and addressing] [added: focuses on] new or potential conflicts of interest that may arise in KKR's business, [removed: including] [added: including, but not limited to,] conflicts relating to specific transactions as well as potential conflicts involving the overall activities of KKR and its various businesses.

The TGAFG board includes among its members [added: one of] our Co-Chief Executive Officers.

[removed: Changes] [added: *Changes] in Fair [removed: Value][added: Value*]

The majority of our investments as of December 31, [removed: 2021,] [added: 2022,] are reported at fair value.

Based on investments held as of December 31, [removed: 2021,] [added: 2022,] 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.

The actual impact to individual line items within the consolidated statements of operations would differ from the amounts shown below as a result of (i) the [removed: inclusion of amounts attributable to KKR Holdings in individual line items within the consolidated statement of operations, (ii) the] elimination of management fees and carried interest as a result of the consolidation of certain investment funds and [removed: CFEs,] [added: CFEs] and [removed: (iii)] [added: (ii)] the gross-up of net gains (losses) from investment activities, in each case as a result of the consolidation of certain investment funds and CFEs.

Based on the fair value of investments as of December 31, [removed: 2021,] [added: 2022,] 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: 2022] [added: 2023] from reductions in the following items, if not offset by other factors:

| [added: Hypothetical] 10% Decline in Fair Value of Investments (1) | | | | | | $ | [removed: 33,959] [added: 43,743] | | (2) | | | $ | [removed: 685,824] [added: 714,236] | | (3) | | | $ | [removed: 1,236,343] [added: 1,757,368] | | (3) | | |

Since the majority of our incentive fees are [removed: earned at December 31st or September 30th of each calendar year and are] not subject to clawback, a 10% decline in fair value would generally result in the recognition of no incentive fees on a prospective basis and result in lower net income relative to prior years where such incentive fees may have been earned.

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

Our management fees in our Private [removed: Markets] [added: Equity and Real Assets] business [removed: line] [added: lines] are generally calculated based on the amount of capital committed or invested by a fund, as described under "Business—Our [removed: Business Lines—Private Markets."] [added: Business—Private Equity" and "Business—Our Business—Real Assets."] Accordingly, movements in the fair value of investments do not significantly affect the amount of fees we may charge in Private [removed: Markets] [added: Equity and Real Assets] funds.

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

In the case of our [removed: Public Markets] [added: Credit and Liquid Strategies] business line, management fees are often calculated based on the average NAV of the fund for that particular period, although certain funds in our [removed: Public Markets] [added: Credit and Liquid Strategies] business line have management fees based on the amount of capital invested.

For the year ended December 31, [removed: 2021,] [added: 2022,] the fund management fees that were recognized based on the NAV of the applicable funds was approximately [removed: 24%.][added: 17%.]

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

The actual impact to individual line items within the statements of operations would differ from the amounts shown below as a result of (i) the [removed: inclusion of amounts attributable to KKR Holdings in individual line items within the consolidated statement of operations, (ii) the] elimination of carried interest as a result of the consolidation of certain investment [removed: funds,] [added: funds] and [removed: (iii)] [added: (ii)] the gross-up of net gains (losses) from investment activities, in each case as a result of the consolidation of certain investment funds and CLO vehicles.

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: 2021] [added: 2022] (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: 2022] [added: 2023] from reductions in the following items, net of the impact of foreign exchange hedging strategies, if not offset by other factors:

| [added: Hypothetical] 10% Decline in Foreign Currencies Against the U.S. Dollar (1) | | | | | | $ | [removed: 183,349] [added: 110,914] | | (2) | | | $ | [removed: 151,497] [added: 231,732] | | (2) | | |

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

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

The impact on net income attributable to KKR & Co. Inc. resulting from a decrease of a hypothetical 100 basis points in variable interest rates used in the recognition of interest income would not be expected to be material since [removed: (i) many variable rate credit investments are subject to floors as described above and (ii)] a substantial portion of this decrease would be attributable to noncontrolling [removed: interests.][added: interests and CLO third party noteholders.]

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

With respect to consolidated funds and CLOs, the impact on net income attributable to KKR & Co. Inc. resulting from an increase of a hypothetical 100 basis points in variable interest rates used in the recognition of interest expense would not be expected to be material since a substantial portion of this increase would be attributable to noncontrolling [removed: interests.][added: interests and third party CLO noteholders.]

With respect to debt obligations held by KKR and not in the consolidated funds or CLOs, as of December 31, [removed: 2021,] [added: 2022,] KKR had debt obligations outstanding with an aggregate principal amount of approximately $258.5 million that accrues interest at a variable rate.

[removed: *Hedge Program*][added: Hedge Program]

For Global Atlantic's variable [removed: policies, including variable] annuity [removed: 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.

See "Risk Factors—Risks Related to Global [added: Atlantic—Business 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 [added: Atlantic—Business 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.

[removed: *Sensitivities*][added: Sensitivities]

[removed: *Interest] [added: Interest] rate [removed: risk*][added: risk]

Changes in fair value of the foregoing are generally recorded as gains or losses in the consolidated statement of [removed: operations.][added: operations, or in the statement of comprehensive income for unrealized gains and losses on available for sale securities.]

[removed: Effect] [added: *Effect] of interest rate [removed: sensitivity][added: sensitivity*]

In the table below, Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in interest rates, from a parallel shift in the yield curve, from levels as of December 31, [removed: 2021] [added: 2022] to its net income and shareholders’ equity, excluding AOCI.

| | | | | | | Hypothetical [removed: change(1)] [added: change] | | | | | | | | |

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

*Asset Management*

This committee focuses on the most significant operating and business risks, which includes, among others, regulatory, cyber, operational, geopolitical, and reputational risks.

In addition, KKR has other committees comprised of senior employees across our Asset Management business and operations that consider potential risks to our business.

*Insurance*

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

| | | | | | | December 31, 2022 | | | | | | | | |

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

| | | | | | | December 31, 2022 | | | | | | | | |

| | | | | | | December 31, 2022 | | | | | | | | |

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

| | | | | | | December 31, 2022 | | | | | | | | |

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

The firm uses various committees to help manage market risk and general business risks.

The investment management and distribution committee focuses on coordinating investment and distribution activities across the firm.

Our Chief Financial Officer, General Counsel, and Chief Compliance Officer are included as members of this committee.

However, the contractual interest rate structure for a large portion of our credit investments bearing variable rates have "floors," which establish a minimum rate of interest that will be earned.

In the current low interest rate environment, a large portion of the credit investments held by us and our consolidated funds, including CLOs, are earning interest marginally above the contractual floor and therefore, for these investments, a decrease in variable interest rates would not materially impact the amount of interest income earned.

| | | | | | | December 31, 2021 | | | | | | | | |

_________________

Sensitivities as of December 31, 2021 include a macro equity hedge position established in December 2018.

Throughout our history, we have consistently been a leader in the private equity industry, having completed more than [removed: 650] [added: 690] private equity investments in portfolio companies with a total transaction value in excess of [removed: $675] [added: $700] billion as of December 31, [removed: 2021.][added: 2022.]

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

Global Atlantic is a leading [removed: U.S.] 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.

Global Atlantic primarily generates income by earning a spread [added: on assets under management, as the difference] between its [added: net] investment income and the cost of policyholder benefits.

As of December 31, [removed: 2021,] [added: 2022,] Global Atlantic served approximately three million policyholders.

We operate in two [removed: segments,] [added: segments:] our asset management business [removed: and, beginning in the first quarter of 2021,] [added: and] our insurance business.

In our asset management business, we have [removed: four] [added: five] business lines: (1) Private [removed: Markets,] [added: Equity,] (2) [removed: Public Markets,] [added: Real Assets,] (3) [added: Credit and Liquid Strategies, (4)] Capital Markets, and [removed: (4)] [added: (5)] Principal Activities.

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

As of December 31, [removed: 2021,] [added: 2022,] approximately [removed: 90%] [added: 91%] of our AUM consists of capital that is [added: either] not subject to redemption for at least 8 years from inception [removed: and] [added: or] what we refer to as perpetual capital.

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 [removed: termination." We believe that these aspects of our business help us continue to grow our asset management business and deliver strong investment performance] [added: termination"] in [removed: a variety] [added: the "Risk Factors" section] of [removed: economic and financial conditions.][added: this report.]

As of December 31, [removed: 2021,] [added: 2022,] we and our employees and other personnel have approximately [removed: $26.9] [added: $28.1] billion invested in or committed to our own funds and portfolio companies, including [removed: $11.1] [added: $13.0] billion of capital funded from our balance sheet, [removed: $11.9] [added: $10.4] billion of additional capital committed by our balance sheet to our investment funds, [removed: $2.8] [added: $3.2] billion funded from personal investments, and [removed: $1.1] [added: $1.5] billion of additional capital commitments from personal investments.

Through our Private [removed: Markets] [added: Equity] business line, we manage and sponsor a group of private equity funds that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions.

[removed: We also] [added: Through our Real Assets business line, we] manage and sponsor [removed: investment] [added: a group of real assets] funds [added: and accounts] that invest capital in [removed: real assets, such as] infrastructure, real estate, [removed: and] [added: or] energy.

Our Private [removed: Markets] [added: Equity] business line includes separately managed accounts that invest in multiple strategies, which may include our credit [removed: strategies] [added: and real assets strategies,] as well as our private equity [removed: and real assets] strategies.

The following chart presents the growth in the AUM of our Private [removed: Markets] [added: Equity] business line from December [removed: 2005] [added: 31, 2018] through December 31, [removed: 2021.][added: 2022.]

[removed: ][added: ($ in billions)]

The table below presents information as of December 31, [removed: 2021,] [added: 2022,] relating to our current private equity and [removed: real asset funds and] other investment vehicles [added: reported] in our Private [removed: Markets] [added: Equity] 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: 2021.][added: 2022.]

| | | | Investment Period [removed: (1)] | | | | | | [added: | | |] Amount ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | |

| | | | [removed: Start Date] [added: Start Date(1)] | | | [removed: End Date] [added: End Date (2)] | | | [added: | | |] Commitment [removed: (2)] [added: (3)] | | | Uncalled Commitments | | | Percentage Committed by General Partner | | | Invested | | | Realized | | | Remaining Cost [removed: (3)] [added: (4)] | | | Remaining Fair Value | | | Gross Accrued Carried Interest | | |

[removed: |] Private [removed: Equity Funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |][added: Equity]

| North America Fund XIII | | | [removed: 6/2021] [added: 8/2021] | | | [removed: 6/2027] [added: 8/2027] | | | [added: | | |] $ | [removed: 17,749] [added: 18,400] | | $ | [removed: 17,749] [added: 13,231] | | [removed: 6%] [added: 3%] | | | $ | [removed: —] [added: 5,169] | | $ | — | | $ | [removed: —] [added: 5,169] | | $ | [removed: —] [added: 5,349] | | $ | — | |

| 2006 Fund [removed: (4)] [added: (5)] | | | 9/2006 | | | 9/2012 | | | [added: | | |] 17,642 | | | 247 | | | 2% | | | 17,309 | | | [removed: 34,744] [added: 37,336] | | | [removed: 1,649] [added: 24] | | | [removed: 2,781] [added: 93] | | | [removed: 278] [added: 11] | | |

| Millennium Fund [removed: (4)] [added: (5)] | | | 12/2002 | | | 12/2008 | | | [added: | | |] 6,000 | | | — | | | 3% | | | 6,000 | | | 14,123 | | | — | | | 6 | | | 1 | | |

| European Fund III [removed: (4)] [added: (5)] | | | 3/2008 | | | 3/2014 | | | [removed: 5,509] | | | [removed: 150] [added: 5,503] | | | [added: 143 | | |] 5% | | | 5,360 | | | 10,604 | | | 669 | | | [removed: 175] [added: 97] | | | [removed: (20)] [added: (30)] | | |

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

| Asian Fund IV | | | 7/2020 | | | 7/2026 | | | [added: | | |] 14,735 | | | [removed: 12,056] [added: 9,768] | | | [removed: 7%] [added: 4%] | | | [removed: 2,679] [added: 5,008] | | | [removed: —] [added: 41] | | | [removed: 2,679] [added: 4,940] | | | [removed: 2,937] [added: 5,561] | | | — | | |

| Asian Fund [removed: (4)] [added: (5)] | | | 7/2007 | | | 4/2013 | | | [added: | | |] 3,983 | | | — | | | 3% | | | 3,974 | | | 8,728 | | | 110 | | | [removed: 23] [added: 10] | | | [removed: 4] [added: 1] | | |

| China Growth Fund [removed: (4)] [added: (5)] | | | 11/2010 | | | 11/2016 | | | [added: | | |] 1,010 | | | — | | | 1% | | | 1,010 | | | [removed: 1,056] [added: 1,065] | | | [removed: 330] [added: 322] | | | [removed: 249] [added: 169] | | | [removed: (3)] [added: (17)] | | |

| Next Generation Technology Growth Fund | | | 3/2016 | | | 12/2019 | | | [added: | | |] 659 | | | 4 | | | 22% | | | 666 | | | [removed: 810] [added: 870] | | | [removed: 359] [added: 362] | | | [removed: 1,529] [added: 1,055] | | | [removed: 128] [added: 82] | | |

| Health Care Strategic Growth Fund II | | | 5/2021 | | | 5/2027 | | | [removed: 3,789] | | | 3,789 | | | [added: 3,414 | | |] 4% | | | [removed: —] [added: 375] | | | — | | | [removed: —] [added: 375] | | | [removed: —] [added: 392] | | | — | | |

| Health Care Strategic Growth Fund | | | 12/2016 | | | [removed: 5/2021] [added: 4/2021] | | | [added: | | |] 1,331 | | | [removed: 522] [added: 292] | | | 11% | | | [removed: 939] [added: 1,169] | | | 196 | | | [removed: 834] [added: 1,058] | | | [removed: 1,261] [added: 1,550] | | | [removed: 62] [added: 69] | | |

[removed: |] Real Assets [removed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |]

| Energy Income and Growth Fund II | | | [removed: 6/2018] [added: 8/2018] | | | 8/2022 | | | [removed: 994] | | | [removed: 415] [added: $] | [added: 994] | | [added: $ | — | |] 20% | | | [removed: 772] [added: $] | [added: 1,187] | | [removed: 193] [added: $] | [added: 193] | | [removed: 610] [added: $] | [added: 1,024] | | [removed: 814] [added: $] | [added: 1,769] | | [removed: 13] [added: $] | [added: 48] | |

| Energy Income and Growth Fund | | | 9/2013 | | | 6/2018 | | | [added: | | |] 1,974 | | | — | | | 13% | | | 1,974 | | | [removed: 912] [added: 1,050] | | | [removed: 1,174] [added: 1,009] | | | [removed: 670] [added: 612] | | | — | | |

| Natural Resources Fund [removed: (4)] [added: (5)] | | | Various | | | Various | | | [added: | | |] 887 | | | — | | | Various | | | 887 | | | [removed: 123] [added: 132] | | | [removed: 193] [added: 171] | | | [removed: 46] [added: 40] | | | — | | |

| Global Infrastructure Investors IV | | | [removed: 6/2021] [added: 8/2021] | | | [removed: 6/2027] [added: 8/2027] | | | [removed: 15,778] | | | [removed: 15,778] [added: 16,545] | | | [removed: 3%] [added: 9,671] | | | [removed: —] [added: 2%] | | | [removed: —] [added: 6,964] | | | [removed: —] [added: 88] | | | [removed: —] [added: 6,899] | | | [removed: —] [added: 6,946] | | | [added: 1 | | |]

| Global Infrastructure Investors | | | [removed: 9/2011] [added: 9/2010] | | | 10/2014 | | | [added: | | |] 1,040 | | | — | | | 5% | | | 1,050 | | | 2,228 | | | — | | | — | | | — | | |

| Real Estate Partners Americas III | | | [removed: 12/2020] [added: 1/2021] | | | 1/2025 | | | [added: | | |] 4,253 | | | [removed: 3,167] [added: 1,808] | | | 5% | | | [removed: 1,086] [added: 2,500] | | | [removed: —] [added: 167] | | | [removed: 1,086] [added: 2,425] | | | [removed: 1,196] [added: 2,428] | | | — | | |

| Real Estate Partners Americas | | | 5/2013 | | | 5/2017 | | | [added: | | |] 1,229 | | | [removed: 142] [added: 136] | | | 16% | | | [removed: 1,016] [added: 1,023] | | | [removed: 1,405] [added: 1,408] | | | [removed: 142] [added: 95] | | | [removed: 67] [added: 53] | | | [removed: 2] [added: (1)] | | |

Previously, we had four business lines where Private Equity and Real Assets were reported as one Private Markets business line.

In addition, prior to the second quarter of 2022, our Credit and Liquid Strategies business line was named Public Markets.

We believe that these aspects of our business help us continue to grow our asset management business and deliver strong investment performance in a variety of economic and financial conditions.

Overview

As of December 31, 2022, our Private Equity business line had $165.1 billion of AUM, consisting of $115.3 billion in traditional private equity, including $33.7 billion in core equity and $16.1 billion in growth equity, which includes $3.9 billion of impact investments.

Our Private Equity business line consists of the following strategies:

Private Equity Assets Under Management and Select Fund Performance Information

Assets Under Management

| Private Equity Business Line | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Americas Fund XII | | | 5/2017 | | | 5/2021 | | | | | | 13,500 | | | 1,579 | | | 4% | | | 12,419 | | | 5,591 | | | 11,150 | | | 17,439 | | | 1,245 | | |

| North America Fund XI | | | 11/2012 | | | 1/2017 | | | | | | 8,718 | | | 156 | | | 3% | | | 10,024 | | | 22,643 | | | 2,798 | | | 3,722 | | | 247 | | |

| European Fund VI | | | 6/2022 | | | 6/2028 | | | | | | 7,449 | | | 7,449 | | | 10% | | | — | | | — | | | — | | | — | | | — | | |

| European Fund V | | | 7/2019 | | | 2/2022 | | | | | | 6,322 | | | 1,020 | | | 2% | | | 5,372 | | | 917 | | | 5,213 | | | 5,951 | | | 236 | | |

| European Fund IV | | | 2/2015 | | | 3/2019 | | | | | | 3,511 | | | 5 | | | 6% | | | 3,637 | | | 5,122 | | | 1,848 | | | 2,742 | | | 178 | | |

| Asian Fund III | | | 8/2017 | | | 7/2020 | | | | | | 9,000 | | | 1,521 | | | 6% | | | 7,909 | | | 5,031 | | | 6,643 | | | 10,826 | | | 779 | | |

| Asian Fund II | | | 10/2013 | | | 3/2017 | | | | | | 5,825 | | | — | | | 1% | | | 7,185 | | | 6,337 | | | 3,033 | | | 2,164 | | | (346) | | |

| Next Generation Technology Growth Fund III | | | 11/2022 | | | 11/2028 | | | | | | 2,358 | | | 2,358 | | | 8% | | | — | | | — | | | — | | | — | | | — | | |

| Next Generation Technology Growth Fund II | | | 12/2019 | | | 5/2022 | | | | | | 2,088 | | | 277 | | | 7% | | | 2,008 | | | 306 | | | 1,860 | | | 2,499 | | | 120 | | |

| Global Impact Fund II | | | 6/2022 | | | 6/2028 | | | | | | 1,981 | | | 1,981 | | | 7% | | | — | | | — | | | — | | | — | | | — | | |

| Global Impact Fund | | | 2/2019 | | | 3/2022 | | | | | | 1,242 | | | 250 | | | 8% | | | 1,142 | | | 215 | | | 1,032 | | | 1,610 | | | 115 | | |

| Co-Investment Vehicles and Other | | | Various | | | Various | | | | | | 17,595 | | | 5,619 | | | Various | | | 12,347 | | | 7,880 | | | 8,703 | | | 10,804 | | | 975 | | |

| Core Investment Vehicles | | | Various | | | Various | | | | | | 24,753 | | | 12,298 | | | 30% | | | 13,293 | | | 872 | | | 12,934 | | | 21,359 | | | 215 | | |

| Total Private Equity | | | | | | | | | | | | $ | 187,281 | | $ | 65,748 | | | | | $ | 127,127 | | $ | 136,384 | | $ | 68,243 | | $ | 93,432 | | $ | 3,881 | |

(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the date upon which management fees begin to accrue.

For further information on management fee calculations, see Note 2 "Summary of Significant Accounting Policies" in our financial statements.

(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which management fees cease to be paid.

For further information on management fee calculations, see Note 2 "Summary of Significant Accounting Policies" in our financial statements.

Private Equity Investment Process and Fund Characteristics

Overview

These funds and accounts are managed by Kohlberg Kravis Roberts & Co. L.P. or one of its subsidiaries.

As of December 31, 2022, our Real Assets business line had $118.6 billion of AUM, consisting of $64.4 billion in real estate (of which $35.6 billion is real estate credit and $28.8 billion is real estate equity), $50.5 billion in infrastructure, and $3.7 billion in energy.

We established a dedicated infrastructure team and strategy in 2008 focused on global investment opportunities with an emphasis on investments in assets and businesses located in the member countries of the Organisation for Economic Co-operation and Development.

In January 2020, we expanded our strategy to include investment opportunities in the Asia-Pacific region.

In 2020, we established the Diversified Core Infrastructure Fund as our first dedicated open-ended core infrastructure fund.

In addition, in April 2022 we acquired KJRM, one of the largest Japanese real estate asset managers in Japan.

KJRM manages diversified real estate assets including retail, office and mixed used properties through two Tokyo Stock Exchange-listed real estate investment trusts: Japan Metropolitan Fund Investment Corporation and Industrial & Infrastructure Fund Investment Corporation.

Real Assets Under Management and Select Fund Performance Information

(1)AUM of acquired businesses are included in the years on and after the completion of the respective acquisitions or transactions, as applicable.

The table below presents information as of December 31, 2022, relating to our current real asset funds 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, 2022.

Private Markets

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

(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.) on October 1, 2009, and therefore exclude the net asset value of that vehicle and its former commitments to our investment funds.

In 2015 our definition of AUM was amended to include (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 capital.

AUM for all prior periods has been adjusted to include such changes.

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

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 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 | | |

| 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 | | |

| 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 | | |

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

| 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 | | |

| 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 | | |

| Asia Pacific Infrastructure Investors | | | 1/2020 | | | 1/2026 | | | 3,792 | | | 2,738 | | | 7% | | | 1,311 | | | 258 | | | 1,161 | | | 1,302 | | | 33 | | |

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

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

| 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 | | |

| Property Partners Americas | | | 12/2019 | | | (5) | | | 2,463 | | | 460 | | | 20% | | | 2,003 | | | 60 | | | 2,003 | | | 2,474 | | | 20 | | |

| Co-Investment Vehicles and Other | | | Various | | | Various | | | 4,880 | | | 715 | | | Various | | | 3,912 | | | 1,579 | | | 3,436 | | | 3,515 | | | 14 | | |

| Real Assets | | | | | | | | | 63,829 | | | 35,147 | | | | | | 29,317 | | | 15,132 | | | 21,111 | | | 22,562 | | | 294 | | |

| Private Markets Total | | | | | | | | | $ | 235,463 | | $ | 101,372 | | | | | $ | 139,566 | | $ | 136,939 | | $ | 77,991 | | $ | 123,819 | | $ | 8,475 | |

(1)The start date represents the date on which the general partner of the applicable fund commenced investment of the fund's capital or the date of the first closing.

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 investments (other than reserved amounts) on behalf of the fund, unless extended by a vote of the fund investors, and (ii) the date on which the last investment was made.

Performance

Amount Invested and Total Value for

Private Markets Investment Funds

As of December 31, 2021

| 2006 Fund (2006) | | | 17,642 | | | 17,309 | | | | | | 34,744 | | | 2,781 | | | | | | 37,525 | | | | | | 12.0 | | % | 9.4 | | % | 2.2 | | |

| China Growth Fund (2010) | | | 1,010 | | | 1,010 | | | | | | 1,056 | | | 249 | | | | | | 1,305 | | | | | | 6.3 | | % | 2.2 | | % | 1.3 | | |

| North America Fund XI (2012) | | | 8,718 | | | 9,752 | | | | | | 16,367 | | | 8,659 | | | | | | 25,026 | | | | | | 24.5 | | % | 19.9 | | % | 2.6 | | |

For a discussion of KKR's legal proceedings, see the section entitled "Litigation" appearing in Note [removed: 24] [added: 25] "Commitments and Contingencies" in our financial statements included elsewhere in this report, which is incorporated herein by reference.

For the fiscal year ended December 31, [removed: 2021][added: 2022]

The aggregate market value of common stock of the registrant held by non-affiliates as of June 30, [removed: 2021,] [added: 2022,] was approximately [removed: $33.1] [added: $29.9] billion.

As of February 24, [removed: 2022,] [added: 2023,] the registrant had [removed: 591,145,410] [added: 861,107,985] shares of common stock outstanding.

For the Year Ended December 31, [removed: 2021][added: 2022]

| Item 1A. | | | [Risk [removed: Factors](#i82942269e85547c6b206e864d0a7ce7e_322)] [added: Factors](#i8806e51b8c7d49bcaebc65ca53a819e4_3751)] | | | [removed: [42](#i82942269e85547c6b206e864d0a7ce7e_322)] [added: [44](#i8806e51b8c7d49bcaebc65ca53a819e4_3751)] | | |

| Item 1B. | | | [Unresolved Staff [removed: Comments](#i82942269e85547c6b206e864d0a7ce7e_340)] [added: Comments](#i8806e51b8c7d49bcaebc65ca53a819e4_391)] | | | [removed: [126](#i82942269e85547c6b206e864d0a7ce7e_340)] [added: [129](#i8806e51b8c7d49bcaebc65ca53a819e4_391)] | | |

| Item 4. | | | [Mine Safety [removed: Disclosures](#i82942269e85547c6b206e864d0a7ce7e_283)] [added: Disclosures](#i8806e51b8c7d49bcaebc65ca53a819e4_289)] | | | [removed: [126](#i82942269e85547c6b206e864d0a7ce7e_283)] [added: [129](#i8806e51b8c7d49bcaebc65ca53a819e4_289)] | | |

| Item 5. | | | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i82942269e85547c6b206e864d0a7ce7e_415)] [added: Securities](#i8806e51b8c7d49bcaebc65ca53a819e4_409)] | | | [removed: [127](#i82942269e85547c6b206e864d0a7ce7e_415)] [added: [130](#i8806e51b8c7d49bcaebc65ca53a819e4_409)] | | |

| Item 7. | | | [Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i82942269e85547c6b206e864d0a7ce7e_124)] [added: Operations](#i8806e51b8c7d49bcaebc65ca53a819e4_118)] | | | [removed: [130](#i82942269e85547c6b206e864d0a7ce7e_124)] [added: [132](#i8806e51b8c7d49bcaebc65ca53a819e4_118)] | | |

| Item 7A. | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i82942269e85547c6b206e864d0a7ce7e_421)] [added: Risk](#i8806e51b8c7d49bcaebc65ca53a819e4_415)] | | | [removed: [201](#i82942269e85547c6b206e864d0a7ce7e_421)] [added: [211](#i8806e51b8c7d49bcaebc65ca53a819e4_415)] | | |

| Item 8. | | | [Financial Statements and Supplementary [removed: Data](#i82942269e85547c6b206e864d0a7ce7e_22)] [added: Data](#i8806e51b8c7d49bcaebc65ca53a819e4_16)] | | | [removed: [210](#i82942269e85547c6b206e864d0a7ce7e_22)] [added: [220](#i8806e51b8c7d49bcaebc65ca53a819e4_16)] | | |

| Item 9. | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i82942269e85547c6b206e864d0a7ce7e_424)] [added: Disclosure](#i8806e51b8c7d49bcaebc65ca53a819e4_445)] | | | [removed: [345](#i82942269e85547c6b206e864d0a7ce7e_424)] [added: [365](#i8806e51b8c7d49bcaebc65ca53a819e4_445)] | | |

| Item 9A. | | | [Controls and [removed: Procedures](#i82942269e85547c6b206e864d0a7ce7e_427)] [added: Procedures](#i8806e51b8c7d49bcaebc65ca53a819e4_448)] | | | [removed: [345](#i82942269e85547c6b206e864d0a7ce7e_427)] [added: [365](#i8806e51b8c7d49bcaebc65ca53a819e4_448)] | | |

| Item 9B. | | | [Other [removed: Information](#i82942269e85547c6b206e864d0a7ce7e_3317)] [added: Information](#i8806e51b8c7d49bcaebc65ca53a819e4_454)] | | | [removed: [346](#i82942269e85547c6b206e864d0a7ce7e_3317)] [added: [366](#i8806e51b8c7d49bcaebc65ca53a819e4_454)] | | |

| Item 9C. | | | [removed: [D](#i82942269e85547c6b206e864d0a7ce7e_3521)[isclosure] [added: [Disclosure] Regarding [removed: Forei](#i82942269e85547c6b206e864d0a7ce7e_3521)[gn] [added: Foreign] Jurisdictions that Prevent [removed: Inspections](#i82942269e85547c6b206e864d0a7ce7e_3521)] [added: Inspections](#i8806e51b8c7d49bcaebc65ca53a819e4_451)] | | | [removed: [346](#i82942269e85547c6b206e864d0a7ce7e_3521)] [added: [366](#i8806e51b8c7d49bcaebc65ca53a819e4_451)] | | |

| Item 10. | | | [Directors, Executive Officers and Corporate [removed: Governance](#i82942269e85547c6b206e864d0a7ce7e_388)] [added: Governance](#i8806e51b8c7d49bcaebc65ca53a819e4_460)] | | | [removed: [347](#i82942269e85547c6b206e864d0a7ce7e_388)] [added: [367](#i8806e51b8c7d49bcaebc65ca53a819e4_460)] | | |

| Item 11. | | | [Executive [removed: Compensation](#i82942269e85547c6b206e864d0a7ce7e_391)] [added: Compensation](#i8806e51b8c7d49bcaebc65ca53a819e4_463)] | | | [removed: [353](#i82942269e85547c6b206e864d0a7ce7e_391)] [added: [375](#i8806e51b8c7d49bcaebc65ca53a819e4_463)] | | |

| Item 12. | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i82942269e85547c6b206e864d0a7ce7e_394)] [added: Matters](#i8806e51b8c7d49bcaebc65ca53a819e4_466)] | | | [removed: [370](#i82942269e85547c6b206e864d0a7ce7e_394)] [added: [390](#i8806e51b8c7d49bcaebc65ca53a819e4_466)] | | |

| Item 13. | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i82942269e85547c6b206e864d0a7ce7e_397)] [added: Independence](#i8806e51b8c7d49bcaebc65ca53a819e4_469)] | | | [removed: [373](#i82942269e85547c6b206e864d0a7ce7e_397)] [added: [392](#i8806e51b8c7d49bcaebc65ca53a819e4_469)] | | |

| Item 14. | | | [Principal [removed: Accounting Fees] [added: Account](#i8806e51b8c7d49bcaebc65ca53a819e4_472)[ant](#i8806e51b8c7d49bcaebc65ca53a819e4_472) [Fees] and [removed: Services](#i82942269e85547c6b206e864d0a7ce7e_400)] [added: Services](#i8806e51b8c7d49bcaebc65ca53a819e4_472)] | | | [removed: [380](#i82942269e85547c6b206e864d0a7ce7e_400)] [added: [399](#i8806e51b8c7d49bcaebc65ca53a819e4_472)] | | |

| Item 15. | | | [removed: [Exhibits](#i82942269e85547c6b206e864d0a7ce7e_406) [and](#i82942269e85547c6b206e864d0a7ce7e_406) [Financial] [added: [Exhibits and Financial] Statement [removed: Schedules](#i82942269e85547c6b206e864d0a7ce7e_406)] [added: Schedules](#i8806e51b8c7d49bcaebc65ca53a819e4_478)] | | | [removed: [381](#i82942269e85547c6b206e864d0a7ce7e_406)] [added: [400](#i8806e51b8c7d49bcaebc65ca53a819e4_478)] | | |

| Item 16. | | | [Form 10-K [removed: Summary](#i82942269e85547c6b206e864d0a7ce7e_412)] [added: Summary](#i8806e51b8c7d49bcaebc65ca53a819e4_484)] | | | [removed: [388](#i82942269e85547c6b206e864d0a7ce7e_412)] [added: [412](#i8806e51b8c7d49bcaebc65ca53a819e4_484)] | | |

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; expansion and growth opportunities and other synergies resulting from acquisitions, reorganizations or strategic partnerships; [added: the return of balance sheet capital if a fund has a successful fundraise; investment opportunities offered to individual investors to continue to grow] and [added: to represent a larger percentage of our assets under management;] the [added: estimate of the amounts expected to be owed under the tax receivable agreement; the ability of core private equity investments to generate earnings that compound over a long period of time; and the] timing and completion of [removed: the] [added: certain] transactions contemplated by the Reorganization Agreement (as defined below) may constitute forward-looking statements.

We believe these factors include those described [removed: under] [added: in] the section entitled "Risk Factors" in this report.

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

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

References to [removed: “principals”] [added: "principals"] are to [added: our] current and former employees who [removed: hold] [added: formerly held] interests in [removed: KKR’s business through] KKR Holdings L.P. [removed: (“KKR Holdings”).][added: ("KKR Holdings"), which we acquired on May 31, 2022, pursuant to the Reorganization Agreement, as discussed below.]

[removed: Neither] KKR [removed: Holdings nor KKR] Associates Holdings is currently [added: not] a subsidiary of KKR & Co. Inc.

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 [removed: it,] [added: it (which as noted below was completed),] (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.

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 [removed: Operations—Reconciliations] [added: Operations—Analysis of Non-GAAP Performance Measures—Reconciliations] to GAAP Measures." This report also uses the terms assets under management ("AUM"), fee paying assets under management ("FPAUM") and capital invested.

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

[removed: They] [added: These references] do not include [added: the] investment funds, vehicles or accounts of any hedge fund [added: partnership] or [added: any] other [added: third-party] manager with which we have formed a strategic partnership [removed: where we] [added: or] have acquired [removed: an] [added: a minority] ownership interest.

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

Unless otherwise indicated, references in this report to our outstanding common stock on a fully exchanged and diluted basis reflect (i) actual shares of common stock outstanding, (ii) shares of common stock into which [removed: KKR Group Partnership Units held by KKR Holdings are exchangeable pursuant to the terms of the exchange agreement described elsewhere in this report, (iii) shares of common stock into which] all outstanding shares of Series C Mandatory Convertible Preferred Stock are convertible, and [removed: (iv)] [added: (iii)] shares of common stock issuable pursuant to [removed: any] equity awards actually granted [removed: from] [added: pursuant to] the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive [removed: Plan") or the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive] Plan" and, together with the [removed: 2010] [added: 2019] Equity Incentive Plan, our "Equity Incentive [removed: 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.][added: Plans").]

- changes in [removed: the] debt financing [removed: markets*;*][added: markets;]

- inability to raise additional or successor funds [removed: at all or at a comparable size to predecessor funds;][added: successfully;]

- increasing focus by stakeholders on [removed: environmental, social and governance] [added: ESG] matters;

- operational risks, cyber-security [removed: failures and] [added: failures,] data security [removed: breaches;][added: breaches and compliance with global privacy laws;]

- [removed: entering into new lines of business and] expansion into new investment strategies, geographic markets and businesses;

- ability to syndicate [removed: the] securities or indebtedness and realize returns on [removed: investments financed with our] balance [removed: sheet;][added: sheet investments;]

| Delaware | | | | | | 88-1203639 | | |

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b).

| | | | [PART I](#i8806e51b8c7d49bcaebc65ca53a819e4_3465) | | | | | |

| Item 1. | | | [Business](#i8806e51b8c7d49bcaebc65ca53a819e4_334) | | | [7](#i8806e51b8c7d49bcaebc65ca53a819e4_334) | | |

| Item 2. | | | [Properties](#i8806e51b8c7d49bcaebc65ca53a819e4_394) | | | [129](#i8806e51b8c7d49bcaebc65ca53a819e4_394) | | |

| Item 3. | | | [Legal Proceedings](#i8806e51b8c7d49bcaebc65ca53a819e4_277) | | | [129](#i8806e51b8c7d49bcaebc65ca53a819e4_277) | | |

| | | | [PART II](#i8806e51b8c7d49bcaebc65ca53a819e4_3453) | | | | | |

| Item 6. | | | [\[Reserved\]](#i8806e51b8c7d49bcaebc65ca53a819e4_412) | | | [131](#i8806e51b8c7d49bcaebc65ca53a819e4_412) | | |

| | | | [PART III](#i8806e51b8c7d49bcaebc65ca53a819e4_457) | | | | | |

| | | | [PART IV](#i8806e51b8c7d49bcaebc65ca53a819e4_475) | | | | | |

| [SIGNATURES](#i8806e51b8c7d49bcaebc65ca53a819e4_400) | | | | | | [413](#i8806e51b8c7d49bcaebc65ca53a819e4_400) | | |

KKR Group Partnership L.P. ("KKR Group Partnership") is the intermediate holding company that owns the entirety of KKR’s business.

“Exchangeable securities” refers to securities that have the right to acquire KKR Group Partnership Units and to exchange them for our shares of common stock.

As of the date of this report, our only outstanding exchangeable securities are vested restricted holdings units issued under the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan").

In the future, we may issue securities other than restricted holdings units that may constitute exchangeable securities.

On May 31, 2022, KKR

completed the acquisition of KKR Holdings and the 258.3 million KKR Group Partnership Units held by it, and in exchange KKR issued and delivered 266.8 million shares of common stock to our principals.

On the "Sunset Date" (which will occur no later than December 31, 2026), KKR will cancel the Series I preferred stock, establish voting rights for all common stock on a one vote per share basis, and acquire control of the carry pool.

KKR’s asset management business is conducted by Kohlberg Kravis Roberts & Co. L.P. and various other subsidiaries of KKR & Co. Inc. other than Global Atlantic.

KKR’s insurance business is operated by Global Atlantic, which KKR acquired on February 1, 2021 (the "GA Acquisition").

KJR Management ("KJRM") is a Japanese real estate asset manager, which KKR acquired on April 28, 2022.

Unless the context requires otherwise, references to “fund investors” refers to the third-party investors in our funds and vehicles.

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.

Additionally, references to "including" are for the purpose of illustration and shall be read to mean "including but not limited to."

- geopolitical developments and other local and global events;

- disruptions caused by public health crises, such as COVID-19;

- transition away from LIBOR;

- assets we refer to as "perpetual capital" being subject to material reduction;

- exposures to, and investments in, leveraged companies or companies experiencing financial or business difficulties;

- complex investments, including large-sized investments and non-controlled investments;

- use of derivative financial instruments in Global Atlantic's risk management strategy;

- triggering a recapture event under reinsurance agreements where Global Atlantic's clients may recapture some or all of the assumed business;

| Delaware | | | | | | 26-0426107 | | |

| | | | [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 6. | | | [\[Reserved\]](#i82942269e85547c6b206e864d0a7ce7e_3530) | | | [129](#i82942269e85547c6b206e864d0a7ce7e_3530) | | |

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

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

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

On February 1, 2021, KKR completed its acquisition of Global Atlantic.

KKR holds all of the voting interests in Global Atlantic and owns 61.5% of the economic equity interests in Global Atlantic, following the completion of certain post-closing purchase price adjustments in the second quarter of 2021.

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.

For periods between July 1, 2018 and December 31, 2019, references to “common stock” refer to Class A common stock of KKR & Co. Inc., and references to “Series I preferred stock” and “Series II preferred stock” refer to Class B common stock and Class C common stock of KKR & Co. Inc., respectively.

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.

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.

- disruptions caused by the COVID-19 pandemic;

- transition away from the London interbank offered rate ("LIBOR") as a benchmark reference for interest rates;

- increased risks related to strategic investor partnerships;

- use of the term perpetual capital;

- decline in the pace or size of investment by our funds;

- less favorable economic terms of our future funds;

- complexities of new investment strategies, markets and businesses;

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

- increased regulatory focus or legislative or regulatory change;

- complex regulations affecting capital raising activities;

- investments in high-yield, below investment grade or unrated debt or in companies in distress;

- investments involving business, regulatory, legal or other complexities;

- large size of our private equity and real assets investments;

- investments in companies that we do not control;

- inclusion of Global Atlantic as our consolidated subsidiary;

- competitiveness of the insurance industry;

- natural and man-made disasters and other catastrophes;

- reinsurance agreements that permit the reinsurance client to recapture some or all of the reinsurance portfolio;

- Global Atlantic's membership in Federal Home Loan Banks;

[removed: On January 1, 2021, we relocated our] [added: Our] principal executive [removed: offices to] [added: office is located at] 30 Hudson Yards, New York, New York.

[removed: PART II][added: PART II]

The number of holders of record of our common stock as of February 24, [removed: 2022] [added: 2023] was [removed: 24.][added: 213.]

Under our current dividend policy for common stock that we announced on February [removed: 8, 2022,] [added: 7, 2023,] we expect to pay our common stockholders an annualized dividend of [removed: $0.62] [added: $0.66] per share of common stock, equal to a quarterly dividend of [removed: $0.155] [added: $0.165] per share of common stock, beginning with the dividend to be declared with respect to the first quarter of [removed: 2022.][added: 2023.]

On February [removed: 8, 2022,] [added: 7, 2023,] we declared a regular dividend of [removed: $0.145] [added: $0.155] per share of common stock under our prior dividend policy for the quarter ended December 31, [removed: 2021.][added: 2022.]

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

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

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

The limited partnership agreement of 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 [removed: KKR Holdings and] [added: holders of restricted holdings units who are limited partners of] KKR Holdings II.

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

See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity—Sources of [removed: Cash."] [added: Liquidity."] In addition, under Section 170 of the DGCL, our [removed: board] [added: Board] of [removed: directors] [added: Directors] may only declare and pay dividends either out of our surplus (as defined in DGCL) or in case there is no such surplus, out of our net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year.

[removed: Common Stock] [added: Share] Repurchases in the Fourth Quarter of [removed: 2021][added: 2022]

[added: (1)] On [removed: December 27, 2021,] [added: February 7, 2023,] KKR announced [removed: an] [added: the] increase to the total available amount under [removed: its] [added: the] repurchase program to $500 million.

Prior to this increase, there was approximately [removed: $37] [added: $78] million remaining under the [removed: program.][added: program as of December 31, 2022.]

Under our current repurchase program, [removed: KKR is] [added: we are] authorized to repurchase [removed: its] [added: our] common stock from time to time in open market transactions, in privately negotiated transactions or otherwise.

The timing, manner, price and amount of any common stock repurchases will be determined by [removed: KKR] [added: us] in [removed: its] [added: our] discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions.

[removed: KKR expects] [added: We expect] that the program, which has no expiration date, will [added: continue to] be in effect until the maximum approved dollar amount has been used.

The program does not require [removed: KKR] [added: us] to repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or discontinued at any time.

In addition to the repurchases of common stock described [removed: above,] [added: below,] subsequent to May 3, 2018, the repurchase program 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: 2021, KKR has] [added: 2022, we] paid approximately [removed: $573] [added: $638] 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: 22.5] [added: 23.8] 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 [removed: during] [added: for] the [removed: fourth quarter of 2021.][added: periods presented.]

During the fourth quarter of [removed: 2021, 1.8 million] [added: 2022, no] shares of common stock were repurchased and [removed: 1.0] [added: 0.7] million equity awards were retired.

From inception of the repurchase program [added: in 2015] through December 31, [removed: 2021,] [added: 2022,] we have repurchased or retired a total of approximately [removed: 68.3] [added: 74.8] million shares of common stock under the program at an average price of approximately [removed: $23.45] [added: $26.92] per share.

| [removed: (amounts] [added: (amounts] in thousands, except share and per share [removed: amounts)] [added: amounts)] | | | | | | | | | | | | | | | | | | | | | | | |

| | | | Total Number of Shares Purchased | | | | | | Average Price Paid Per Share | | | | | | [removed: Cumulative] [added: Total] Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | | |

| Month #1 (October 1, 2022 to October 31, 2022) | | | — | | | | | | $ | — | | | | | — | | | | | | $ | 77,856 | |

| Month #2 (November 1, 2022 to November 30, 2022) | | | — | | | | | | $ | — | | | | | — | | | | | | $ | 77,856 | |

| Month #3 (December 1, 2022 to December 31, 2022) | | | — | | | | | | $ | — | | | | | — | | | | | | $ | 77,856 | |

| Total through December 31, 2022 | | | — | | | | | | | | | | | | | | | | | | | | |

The repurchase program does not have an expiration date.

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 KKR Group Partnership.

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

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

Unregistered Sale of Equity Securities

Following the closing of the Global Atlantic acquisition, on February 2, 2021, KKR & Co. Inc. issued 0.96 million newly issued shares of its common stock for an aggregate purchase price equal to $38.5 million to certain members of Global Atlantic's senior management who agreed to invest a portion of their proceeds from the acquisition into KKR & Co. Inc. common stock.

These members of Global Atlantic's senior management agreed not to transfer the shares received in this issuance for a three-year period following the acquisition, subject to certain exceptions, and to continue to own at least 25% of such shares so long as such person is employed with Global Atlantic.

These shares were issued in a private placement exempt from registration under Section 4(a)(2) of the Securities Act.

Other Equity Securities

During the fourth quarter of 2021, 12,301,588 KKR Group Partnership Units were exchanged by KKR Holdings for an equal number of shares of our common stock.

This resulted in an increase in our ownership of the KKR Group Partnership and a corresponding decrease in the ownership of the KKR Group Partnership by KKR Holdings.

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.

[Table of Co](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[n](#i8806e51b8c7d49bcaebc65ca53a819e4_328)[tents](#i8806e51b8c7d49bcaebc65ca53a819e4_328)

| Report of Independent Registered Public Accounting Firm | | | [removed: [211](#i82942269e85547c6b206e864d0a7ce7e_301)] [added: [221](#i8806e51b8c7d49bcaebc65ca53a819e4_397)] | | |

| Consolidated Statements of Financial Condition as of December 31, [removed: 2021] [added: 2022] and [removed: 2020] [added: 2021] | | | [removed: [215](#i82942269e85547c6b206e864d0a7ce7e_25)] [added: [224](#i8806e51b8c7d49bcaebc65ca53a819e4_19)] | | |

| Consolidated Statements of Operations for the Years Ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [219](#i82942269e85547c6b206e864d0a7ce7e_28)] [added: [228](#i8806e51b8c7d49bcaebc65ca53a819e4_22)] | | |

| Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [221](#i82942269e85547c6b206e864d0a7ce7e_31)] [added: [230](#i8806e51b8c7d49bcaebc65ca53a819e4_25)] | | |

| Consolidated Statements of Changes in Equity for the Years Ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [222](#i82942269e85547c6b206e864d0a7ce7e_34)] [added: [231](#i8806e51b8c7d49bcaebc65ca53a819e4_28)] | | |

| Consolidated Statements of Cash Flows for the Years Ended December 31, [removed: 2021, 2020] [added: 2022, 2021] and [removed: 2019] [added: 2020] | | | [removed: [225](#i82942269e85547c6b206e864d0a7ce7e_37)] [added: [234](#i8806e51b8c7d49bcaebc65ca53a819e4_31)] | | |

| Notes to Consolidated Financial Statements | | | [removed: [228](#i82942269e85547c6b206e864d0a7ce7e_40)] [added: [237](#i8806e51b8c7d49bcaebc65ca53a819e4_34)] | | |

We have audited the accompanying consolidated statement of financial condition of KKR & Co. Inc. and its subsidiaries (the "Company") as of December 31, [removed: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] 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: 2021,] [added: 2022,] 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: 2021,] [added: 2022,] 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: 2021] [added: 2022] and [removed: 2020,] [added: 2021,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2021,] [added: 2022,] 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: 2021,] [added: 2022,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

Fair Value—Level III Investments—Refer to Notes 2, [removed: 7,] [added: 8,] and [removed: 9] [added: 10] to the financial statements

KKR & Co. Inc. [removed: (“the Company”)] and the funds it sponsors and manages have [removed: Level III Investments reported] [added: certain investments measured] at fair [removed: value.][added: value that are based on unobservable pricing inputs and are classified as Level III Investments.]

Certain of the [added: investment] funds’ investments [removed: contain unobservable inputs that] are classified as level III in the fair value [removed: hierarchy.][added: hierarchy because they are valued using unobservable inputs.]

The change in the fair value of the underlying Level III Investments held by the [added: investment] funds is a significant input into the determination of carried interest for each reporting period.

As the fair value of underlying investments varies between reporting periods, it is necessary to [removed: make adjustments to] [added: adjust the] amounts recorded as carried interest.

The [removed: Global Atlantic acquisition] [added: KJRM Acquisition] was accounted for as a business combination under [removed: Financial Accounting Standards Board] [added: FASB] Accounting Standards Codification Topic 805, Business [removed: Combinations.][added: Combinations ("Topic 805").]