WHITE MOUNTAINS INSURANCE GROUP LTD

Kudu provides capital solutions for boutique asset and wealth managers for a variety of purposes including generational ownership transfers, management buyouts, acquisition and growth finance and legacy partner liquidity. Kudu also provides strategic advice to managers from time to time. Kudu’s capital solutions are generally structured as noncontrolling equity interests in the form of revenue and earnings participation contracts (“Participation Contracts”) and designed to generate immediate cash yields.

Kudu expects to fund new capital deployments predominantly through excess operating cash flows, recycling of certain sales transaction proceeds, and available debt capacity, with additional equity contributions from White Mountains and other existing investors as needed.

As of December 31, 2025 and 2024, White Mountains reported $1,402 million and $1,108 million of total assets and $955 million and $792 million of total equity related to Kudu. As of December 31, 2025 and 2024, White Mountains owned 91.2% and 90.4% of Kudu’s basic units outstanding (77.9% and 77.0% on a fully-diluted/fully-converted basis, taking account of management’s equity incentives) and reported $141 million and $128 million of noncontrolling interests related to Kudu.

Portfolio

As of December 31, 2025, Kudu had deployed $1.2 billion, including transaction costs, into 30 asset and wealth management firms globally, including three that have been exited. As of December 31, 2025, Kudu’s asset and wealth management firms had combined assets under management of approximately $153 billion, spanning a range of asset classes including real estate, wealth management, hedge funds, private equity and alternative credit strategies. Since inception, Kudu’s capital was deployed at an initial average gross cash yield of 9.3% based on expected cash in the first year following deployment.

Kudu’s philosophy is to partner with asset and wealth management firms that exhibit strong cash flow generation and growth. Kudu seeks to provide its solutions across a diverse mix of investment strategies and asset classes in the middle market.

Kudu’s average capital deployment to date has been approximately $39 million, with a range from $14 million to $81 million. Apportioned by manager type, Kudu’s portfolio as of December 31, 2025 was deployed 35% in alternatives, 44% in private capital, 14% in wealth management and 7% in traditional asset management. Kudu prioritizes the private capital segment as the underlying clients of these firms tend to be locked-up for an extended period, which can provide stability of revenues in a potential market downturn.

Kudu is geographically diversified with portfolio companies headquartered in the United States and internationally.