Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") today announced that KKR China Growth Fund L.P., a China-focused investment fund managed by KKR, had invested in Novo Holdco Limited (“Novo”), a fast-growing fashion apparel retailer focused on the urban youth demographic in China. Since KKR’s investment, Novo has significantly expanded their nationwide store network and pursued licensing agreements with attractive international fashion brands to help fuel their growth in China. “Novo was one of the first and remains one of the largest established specialized department store chains targeting the underserved urban youth fashion market in China. We are very impressed with KKR’s global franchise and the China team’s strong track record. There is a history of growth when retail companies partner with KKR and we are confident that this partnership will enable us to leverage their retail industry expertise and local knowledge to further grow our business as an industry leader in China,” said Alan Fang, Chairman and CEO of Novo. “We plan to grow aggressively in the coming few years both in our anchor stores and brands development. We look forward to partnering with the KKR team on our growth story,” Chairman Fang added. “We see enormous long-term growth potential in the Chinese fashion retail industry driven by rising domestic consumption and an increasing demand for the latest fashion trends. The Chinese youth apparel retail market is a $38 billion industry and has been growing at 16% per annum since 2005. Novo has developed a unique business model with extensive local network and supplier relationships which enable it to fully capitalize on the rising demand in the Chinese youth fashion market over the long term,” said David Liu, Member of KKR and CEO of KKR Greater China. “Novo has a strong management team with extensive retail expertise and a strong track record of developing retail networks and anticipating the latest fashion trends in China. We look forward to supporting Novo in their growth plans and are committed to fully utilizing KKR's global resources and retail expertise in creating a win-win long-term partnership,” commented Julian Wolhardt, Member of KKR.