KKR : August 20, 2021|InCred Finance and KKR India Financial Services Merge to Create Diversified Lending Platform

MUMBAI - August 20, 2021- KKR and InCred today announced that they have entered into a strategic transaction to create a diversifiedIndian lending company by combining KKR India Financial Services Limited ('KIFS') and InCred Financial Services ('InCred Finance'), the retail and micro, small and medium enterprise ('MSME') lendingbusiness of InCred. This transaction will bring together two of India's best-known non-banking finance companies and combine their resources to better meet the needs of retail borrowers, small businesses, and entrepreneurs across India.

Founded in 2016 by Bhupinder Singh, InCred Finance is a tech-enabledlending institutionthat spans online and offline models across consumer, small businesses,and education lending. KIFS, which was founded in 2009, provides Indian businesses with financing solutions. KIFS holds a 'AA' / Stable rating from CRISIL.

InCred Finance will continue to provide clients with flexible funding solutions that meet their needs, but with the additional benefits of operational scale, enhanced technological capabilities, and access to an even broader suite of financial solutions. On a pro forma basis, InCred Finance will have an equity base of US$300 million and a balance sheet of US$750 million. With a strong liquidity profile, substantive capital base,and low leverage, InCred Finance is well positionedto embark onits next phase of growth.

Bhupinder Singh, Founder and CEO of InCred, said, 'We are thrilled to announce this transformative partnership with KKR. Their long-term vision and commitment to the India story fits perfectly with InCred's objective of creating a leading financial institution that will play a meaningful role in India's credit ecosystem. We welcome the KIFS team to InCred and look forward to working with KKRas we seek out compelling lending opportunities across India.'

Gaurav Trehan, Partner and CEO of KKR India, added, 'This is a great milestone for KKR's India business considering the market-leading retail lending company Bhupinder and his team have created in just a few short years. Bringing together InCred Finance and KIFS will create a larger enterprise with the enhanced resources and investment acumen. KIFS has been a long-time market leader and we are excited to address India's lending opportunity with an even greater array of flexible solutions for borrowers.'

Transaction Structure

Under the terms of the agreement, InCred's retail non-banking finance business and KIFS will be combined to form InCred Finance, which will be led by CEO Bhupinder Singh.

Aconsortium consisting of Mr. Singh, as well as existing InCred investors, will own a majority stake in InCred Finance. A consortium led by KKR and comprisingexisting investors in KIFS will retain a significant minority stake. KKR will be the single largest investor inInCred Finance at the time of the transaction's close and will remain a long-term strategic partner to the business.

The transaction is not a monetization event for investors of InCred, KIFS or KKR. InCred Finance will be a strategic investment for KKR and will not be a portfolio company in a KKR fund. Itwill operate independently of KKR.

Subject to the satisfaction of customary closing conditions, including the receipt of requisite regulatory approvals, the transaction is expected to close in the fourth quarter of 2021.

Avendus Capital advised KKR on the transaction. EY acted as KKR's financialadvisor and AZB acted as KKR's legal advisor. InCred Finance was advised by Credit Suisse and InCred Capital. KPMG and Bobby Parikh Associates acted as InCred's financial and tax advisors and Trilegal acted as InCred's legal advisor.

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About InCred

InCred Finance is a new-age, tech-and risk-analytics-focused lending institution founded in 2016 by Bhupinder Singh. It's business verticals include Retail Lending, Small Business Lending and Education Finance. InCred's lending approach is based on the twin pillars of domain expertise and risk analytics with a cutting-edge tech architecture acting as the backbone for the firm's full suite of functions and processes. InCred's equity investors include former Deutsche Bank co-CEO Anshu Jain, Ranjan Pai of Manipal Group, OAKS Asset Management, Investcorp, FMO, Moore Capital and Elevar.

About KKR

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.comand on Twitter @KKR_Co.

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