- Initial Statement of Beneficial Ownership (3)

FORM 3	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES	OMB APPROVAL OMB Number: 3235-0104 Expires: February 28, 2011 Estimated average burden hours per response... 0.5
	Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

1. Name and Address of Reporting Person ^*

COOPERMAN LEON G

2. Date of Event Requiring Statement (MM/DD/YYYY) 2/4/2010

3. Issuer Name and Ticker or Trading Symbol

KKR Financial Holdings LLC [kfn]

(Last) (First) (Middle)

88 PINE STREET, WALL ST PLAZA 31ST FLOOR

4. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director ___ X ___ 10% Owner
_____ Officer (give title below) _____ Other (specify below)

(Street)

NEW YORK, NY 10005

(City) (State) (Zip)

5. If Amendment, Date Original Filed (MM/DD/YYYY)

6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	2000000	D
Common Stock	200000	I	Cooperman Foundation ⁽¹⁾
Common Stock	6518213	I	Managed Accounts ⁽²⁾
Common Stock	6967354	I	Investment Entities ⁽³⁾
Common Stock	10360	I	JCF Metrowest Foundation ⁽⁴⁾

*Table II - Derivative Securities Beneficially Owned ( e.g.* , puts, calls, warrants, options, convertible securities)**
1. Title of Derivate Security (Instr. 4)	2. Date Exercisable and Expiration Date (MM/DD/YYYY)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivate Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security		6. Nature of Indirect Beneficial Ownership (Instr. 5)
7% Convertible Senior Notes due 2012	⁽⁵⁾	7/15/2012	Common Stock	161291 ⁽⁶⁾	$31 ⁽⁷⁾	D
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	733228 ⁽⁶⁾	$8.18 ⁽⁷⁾	D
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	1222046 ⁽⁶⁾	$8.18 ⁽⁷⁾	I	Watchung Road Associates ⁽⁹⁾
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	73323 ⁽⁶⁾	$8.18 ⁽⁷⁾	I	Cooperman Foundation ⁽¹⁾
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	155933 ⁽⁶⁾	$8.18 ⁽⁷⁾	I	Investment Entities ⁽³⁾
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	261396 ⁽⁶⁾	$8.18 ⁽⁷⁾	I	Managed Accounts ⁽²⁾
7.5% Convertible Senior Notes due 2017	⁽⁸⁾	1/15/2017	Common Stock	48882 ⁽⁶⁾	$8.18 ⁽⁷⁾	I	NJ Performing Arts Foundation ⁽¹⁰⁾

Explanation of Responses:
( 1)	The securities are held in the account of the Leon & Toby Cooperman Foundation over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership of these securities, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
( 2)	The securities are held in managed accounts over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
( 3)	The securities are held in the accounts of private investment entities over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
( 4)	The securities are held in the account of the JCF Metrowest Foundation over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership of these securities, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
( 5)	The Notes are convertible (i) at any time prior to the close of business on the business day preceding any redemption of the notes, to the extent such notes are called for redemption, (ii) upon the satisfaction of certain market price or trading price conditions or the occurrence of certain specified transactions or (iii) at any time between June 15, 2012 and the close of business on the business day preceding the stated maturity date, July 15, 2012.
( 6)	The Notes are convertible at the Company's option either for the number of shares of common stock listed in Table II, for cash or for a combination thereof.
( 7)	Subject to adjustment
( 8)	The Notes are convertible at any time prior to the close of business on the business day preceding (i) any redemption of the notes; to the extent such notes are called for redemption, (ii) any termination of conversion rights or (iii) the stated maturity date, January 15, 2017.
( 9)	The securities are held in the account of a family limited partnership over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
( 10)	The securities are held in the account of the NJ Performing Arts Foundation over which the reporting person has investment discretion. The reporting person disclaims beneficial ownership of these securities, and the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.

Reporting Owners
Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
COOPERMAN LEON G 88 PINE STREET WALL ST PLAZA 31ST FLOOR NEW YORK, NY 10005		X

Signatures
Alan M. Stark, attorney-in-fact for Leon G. Cooperman		5/24/2010
^** Signature of Reporting Person		Date

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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