The Cygnus Advantage

Our proprietary advantage is our ability to deliver access to a global and diversified suite of KKR products through innovative structures featuring historically low minimums.

KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, capital markets, credit strategies and hedge funds.

The innovative Cygnus model is an important reason KKR selected us to present its investment capabilities to the broader qualified Canadian market. Cygnus will service investors other than those directly served by KKR. We have the ability to offer access to KKR’s global investment expertise at much lower investment minimums to qualified investorsin Canada. This ground-breaking Canadian offer is proprietary to Cygnus.

The Cygnus KKR relationship provides Cygnus clients with a compelling value proposition: KKR’s history of investment success and global diversification, within a Canadian-domiciled product structure managed by Cygnus. KKR is not new to Canada, but may be new to Canadians. Millions of Canadians already have KKR working inside their portfolios through their participation in some of the country’s largest public sector pension plans. Put the tremendous global resources and expertise of KKR to work in your investment portfolio. Our team stands ready to assist you in the process of selecting the most appropriate Cygnus solution for your portfolio.2

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Cygnus on the Alternatives Landscape

Alternative investing in Canada is a rapidly expanding and evolving marketplace. Alternative investments bring unique benefits to a portfolio: diversification, risk mitigation and the potential for outperformance relative to more traditional asset classes. We at Cygnus intend to play a transformational role in this growing market place through our innovative product structures combined with access to one of the finest asset managers in the world.

Currently, access to select alternative asset managers like KKR can be limited and challenging for all but the world’s largest investors. Cygnus developed a proprietary structure and, in conjunction with KKR, will expand the universe of investing opportunities available to the broadest segment of qualified Canadian investors ever.2

KKR maintains long-standing investment relationships with many of Canada’s largest public sector pension plans and have brought their 40 year history of performance to those elite Canadian institutions for decades. As KKR continues to grow in Canada, they have partnered with Cygnus for our respected leadership team, deep knowledge of the Canadian market place, and expertise in asset management.

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KKR Expertise

25.6%

The cumulative gross IRR generated since 1976 (net IRR of 18.9%) by KKR’s private equity funds with at least 36 months of activity prior to December 31, 2016, compared to just 11.7% achieved by the S&P 500 index over the same period.

119

Portfolio companies in KKR’s private equity funds that generate nearly $200 billion in annual revenues as of June 30, 2016 and employ a total global workforce of approximately 720,000 as of
December 31, 2016.

30+

Investment funds raised since KKR’s inception, including 19 private equity funds.

~80%

Of KKR’s private equity investments were secured on a limited process or proprietary basis.

40

Million

Retirees and pensioners with exposure to KKR’s investments.

US$10.8

Billion

Invested in or committed to KKR’s own funds and portfolio companies alongside KKR’s clients as of December 31, 2016.