EX-99.1 2 k-infrax202403xex991.htm EX-99.1 Document

Exhibit 99.1

Net Asset Value

We calculate net asset value per share in accordance with valuation policies and procedures that have been approved by our board of directors. Our transactional net asset value (“Transactional Net Asset Value”) is the price at which we sell and repurchase our shares. Our GAAP net asset value (“GAAP Net Asset Value”) is our net asset value determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The following table provides a breakdown of the major components of our Transactional Net Asset Value as of March 31, 2024 and December 31, 2023 ($ in thousands, except shares):

Components of Transactional Net Asset ValueMarch 31, 2024December 31, 2023
Investments at fair value (1)
$1,021,161 $983,552 
Cash and cash equivalents662,484 278,417 
Other assets8,452 18,832 
Other liabilities(34,690)(50,654)
Accrued performance participation allocation(12,412)(8,335)
Management fee payable— — 
Accrued shareholder servicing fees and distribution fees (2)
(1,353)(1,010)
Transactional Net Asset Value$1,643,642 $1,220,802 
Number of outstanding shares60,472,345 45,294,472 

(1) Cost of $919,367 as of March 31, 2024 and $895,257 as of December 31, 2023.

(1) Shareholder servicing fees apply only to Class S Shares, Class U Shares, Class D Shares, Class R-S Shares and Class R-D Shares. Distribution fees apply only to Class S Shares, Class R-S Shares and Class U Shares. For purposes of Transactional Net Asset Value, we recognize shareholder servicing fees and distribution fees as a reduction to Transactional Net Asset Value on a monthly basis as such fees are accrued. For purposes of GAAP Net Asset Value, we accrue the cost of the shareholder servicing fees and distribution fees, as applicable, for the estimated life of the shares as an offering cost at the time we sell Class S Shares, Class U Shares, Class D Shares, Class R-S Shares and Class R-D Shares. As of March 31, 2024, we have accrued under GAAP $66,983 of shareholder servicing fees and distribution fees payable to the dealer-manager related to the Class U Shares, Class D Shares, Class R-D Shares and Class R-S Shares sold. As of December 31, 2023, we have accrued under GAAP $51,440 of shareholder servicing fees and distribution fees payable to the Dealer-Manager related to the Class U Shares, Class D Shares and Class R-D Shares sold



The following table provides a breakdown of our total Transactional Net Asset Value and our Transactional Net Asset Value per share by class as of March 31, 2024 ($ in thousands, except shares and per share data):

Transactional Net Asset Value Per ShareClass I SharesClass U SharesClass R-D SharesClass R SharesClass D SharesClass R-S SharesClass E SharesClass F SharesClass G SharesClass H SharesTotal
Monthly Transactional Net Asset Value$209 $1,005,884 $12,746 $622,630 $10 $737 $1 $1,423 $1 $1 $1,643,642 
Number of outstanding shares7,702 37,019,137 468,875 22,897,848 384 27,062 40 51,217 40 40 60,472,345 
Transactional Net Asset Value per Share as of March 31, 2024$27.19 $27.17 $27.18 $27.19 $27.18 $27.23 $27.79 $27.79 $28.54 $28.54 

The following table provides a breakdown of our total Transactional Net Asset Value and our Transactional Net Asset Value per share by class as of December 31, 2023 ($ in thousands, except shares and per share data):

Transactional Net Asset Value Per ShareClass I SharesClass U SharesClass R-D SharesClass R SharesClass D SharesClass E SharesClass F SharesClass G SharesClass H SharesTotal
Monthly Transactional Net Asset Value$3,552 $756,827 $9,518 $449,523 $10 $1 $1,369 $1 $1 $1,220,802 
Number of outstanding shares131,691 28,088,229 353,076 16,671,146 380 40 49,830 40 40 45,294,472 
Transactional Net Asset Value per Share as of December 31, 2023$26.97 $26.94 $26.96 $26.96 $26.95 $27.47 $27.47 $27.94 $27.94 



Reconciliation of Transactional Net Asset Value to GAAP Net Asset Value

The following table reconciles GAAP Net Asset Value to our Transactional Net Asset Value as of March 31, 2024 and December 31, 2023 ($ in thousands):

As of March 31, 2024As of December 31, 2023
GAAP Net Asset Value$1,578,012 $1,170,372 
Adjustment:
Accrued shareholder servicing fees and distribution fees65,630 50,430 
Transactional Net Asset Value$1,643,642 $1,220,802 

Valuation Methodologies and Significant Inputs

The following table presents additional information about valuation methodologies and significant inputs used for Infrastructure Assets that are valued at fair value as of March 31, 2024 and December 31, 2023:

As of March 31, 2024As of December 31, 2023
Valuation Methodology & Inputs
Unobservable Input(s) (1)
Weighted Average (2)
Range
Weighted Average (2)
Range
Inputs to market comparables, discounted cash flow and transaction price/otherIlliquidity Discount5.1%5.0% - 10.0%5.1%5.0% - 10.0%
Weight Ascribed to Market Comparables3.8%0.0% - 25.0%4.0%0.0% - 25.0%
Weight Ascribed to Discounted Cash Flow94.5%0.0% - 100.0%94.6%0.0% - 100.0%
Weight Ascribed to Transaction Price/Other1.7%0.0% - 100.0%1.4%0.0% - 100.0%
Market ComparablesEnterprise Value / Forward EBITDA Multiple10.6x10.6x - 10.6x10.5x10.5x - 10.5x
Discounted Cash FlowWeighted Average Cost of Capital9.7%6.9% - 12.1%9.7%6.7% - 12.1%
Enterprise Value / LTM EBITDA Exit Multiple17.0x10.7x - 23.6x13.9x9.5x - 21.0x

(1) In determining the inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments including exit strategies and realization opportunities. KKR Infrastructure Conglomerate LLC’s manager (the “Manager”) has determined that market participants would take these inputs into account when valuing the investments. “LTM” means Last Twelve Months.

(2) Inputs are weighted based on fair value of the investments included in the range.

The Manager is ultimately responsible for our net asset value calculations.

Valuations involve subjective judgments and may not accurately reflect realizable value. The assumptions above are determined by the Manager and reviewed by our independent valuation advisor. A change in these assumptions or factors would impact the calculation of the value of our assets. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our asset values as of March 31, 2024 and December 31, 2023:



As of March 31, 2024As of December 31, 2023
InputHypothetical ChangeInfrastructure Asset ValuesHypothetical ChangeInfrastructure Asset Values
Weighted Average Cost of Capital0.25% decrease+2.53%0.25% decrease+2.55%
0.25% increase-2.48%0.25% increase-2.49%