KFN Kkr Financial Holdings Llc

CUSIP No. 48248A306
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1. Names of Reporting Persons/ I.R.S. Identification Nos. of Above Persons
 (entities only):
 LEON G. COOPERMAN
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2. Check the Appropriate Box if a Member of a Group (See Instructions)

 (a) [_]
 (b) [X]
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3. SEC Use Only
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4. Citizenship or Place of Organization: UNITED STATES
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Number of 5. Sole Voting Power: 12,950,033*
Shares Bene-
ficially 6. Shared Voting Power 7,466,913
Owned by
Each Report- 7. Sole Dispositive Power: 12,950,033*
ing Person
With 8. Shared Dispositive Power 7,466,913

* This includes Shares that are deemed owned by virtue of the Issuer's DEBT
 that is convertible into Shares.
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9. Aggregate Amount Beneficially Owned by Each Reporting Person:

 20,416,946*

* This includes Shares that are deemed owned by virtue of the Issuer's DEBT
 that is convertible into Shares.
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10. Check Box if the Aggregate Amount in Row (9) Excludes
 Certain Shares [_]
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11. Percent of Class Represented by Amount in Row (9): 12.7%

 The beneficial ownership percentage set forth herein has been calculated
based on 158,412,565 Shares of the Issuer outstanding on October 28, 2010, as
reported on the Issuer's Form 10-Q for the quarter ending September 30, 2010,
plus 2,275,719 Shares that would be outstanding if the Issuer's DEBT deemed
owned by the Reporting Person was converted into common shares.
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12. Type of Reporting Person IN
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CUSIP No. 48248A306
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 This statement is filed with respect to the Shares of KKR FINANCIAL
HOLDINGS LLC (the "Issuer") beneficially owned by LEON G. COOPERMAN as of
December 31, 2010 and amends and supplements the Schedule 13G previously filed (
the "Schedule 13G"). Except as set forth herein the Schedule 13G is unmodified.

Item 2 (a) Name of Person Filing:

 This statement is filed on behalf of Leon G. Cooperman ("Mr. Cooperman").

 Mr. Cooperman is the Managing Member of Omega Associates, L.L.C.
("Associates"), a limited liability company organized under the laws of the
State of Delaware. Associates is a private investment firm formed to invest in
and act as general partner of investment partnerships or similar investment
vehicles. Associates is the general partner of limited partnerships organized
under the laws of Delaware known as Omega Capital Partners, L.P. ("Capital LP"),
Omega Capital Investors, L.P.("Investors LP"), and Omega Equity Investors, L.P.
("Equity LP"). These entities are private investment firms engaged in the
purchase and sale of securities for investment for their own accounts.

 Mr. Cooperman is the President and majority stockholder of Omega Advisors,
Inc. ("Advisors"), a Delaware corporation, engaged in providing investment
management services and is deemed to control said entity. Advisors serves as the
investment manager to Omega Overseas Partners, Ltd. ("Overseas"), a Cayman
Island exempted company, with a business address at British American Tower,
Third Floor, Jennrett Street, Georgetown, Grand Cayman Island, British West
Indies. Mr. Cooperman has investment discretion over portfolio investments of
Overseas and is deemed to control such investments.

 Advisors also serves as a discretionary investment advisor to a limited
number of institutional clients (the "Managed Accounts"). As to the Shares owned
by the Managed Accounts, there would be shared power to dispose or to direct the
disposition of such Shares because the owners of the Managed Accounts may be
deemed beneficial owners of such Shares pursuant to Rule 13d-3 under the Act as
a result of their right to terminate the discretionary account within a period
of 60 days.

 Mr. Cooperman is the ultimate controlling person of Associates, Capital LP,
Investors LP, Equity LP, and Advisors.

 Mr. Cooperman is one of the Trustees of the Leon and Toby Cooperman
Foundation (the "Foundation"), a charitable trust dated December 16, 1981. The
other trustees are his wife, Toby Cooperman, his sons, Wayne Cooperman and
Michael Cooperman, and his brother, Howard J. Cooperman. Mr. Cooperman helps
manage the investments of JCF Metrowest of NJ ("JCF"), a charitable institution.
Mr. Cooperman helps manage the investments of the NJ Performing Arts Foundation
("NJ Arts"), a charitable foundation.

 Mr. Cooperman is the sole general partner of a limited partnership
organized under the laws of the State of New Jersey known as Watchung Road
Associates, L.P.("Watchung"). It is a private investment partnership engaged in
the purchase and sale of securities and other investments for its own account.
This partnership was dissolved in January 2011.


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CUSIP No. 48248A306
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 Item 2(b) Address of Principal Business Office or, if None, Residence:

 The address of the principal business office of each of Mr. Cooperman and
the Foundation is 2700 No. Military Trail, Suite 230, Boca Raton FL 33431 and
the principal business office of each Capital LP, Equity LP, Investors LP,
Overseas, and Advisors is 88 Pine Street, Wall Street Plaza - 31st Floor, New
York, NY 10005.


Item 4. Ownership:

Item 4(a) (b) Amount Beneficially Owned and Percent of Class:

 Mr. Cooperman may be deemed the beneficial owner of 20,416,946 Shares which
constitutes approximately 12.7% of the total number of Shares deemed
outstanding, and those figures include the Shares that would be issued upon
conversion of the Issuer's DEBT.

 This consists of 3,303,230 Shares owned by Capital LP; 714,925 Shares owned
by Investors LP; 1,151,595 Shares owned by Equity LP; 2,794,204 Shares owned by
Overseas; 7,466,913 Shares owned by the Managed Accounts; 274,627* Shares owned
by the Foundation; 3,407,560* Shares owned by Mr. Cooperman; 10,360 Shares owned
by JCF, 1,243,781* Shares owned by Watchung; and 49,751* Shares owned by NJ
Arts.

* This includes Shares that are deemed owned by virtue of the Issuer's DEBT
 that is convertible into Shares.

Item 4(c). Number of Shares as to which such person has:

 (i) Sole power to vote or to direct the vote: 12,950,033*
 (ii) Shared power to vote or to direct the vote: 7,466,913
 (iii) Sole power to dispose or to direct the disposition of: 12,950,033*
 (iv) Shared power to dispose or to direct the disposition of: 7,466,913

* This includes Shares that are deemed owned by virtue of the Issuer's DEBT
 that is convertible into Shares.

Item 5. Ownership of Five Percent or Less of a Class:

 This Item 5 is not applicable.


Item 6. Ownership of More than Five Percent on Behalf of Another Person:

 This Item 6 is not applicable.


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CUSIP No. 48248A306
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Item 7. Identification and Classification of the Subsidiary Which Acquired the
 Security Being Reported on by the Parent Holding Company:

 This Item 7 is not applicable.


Item 8. Identification and Classification of Members of the Group:

 This Item 8 is not applicable.


Item 9. Notice of Dissolution of Group:

 This Item 9 is not applicable.


Item 10. Certification:

 By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were not acquired and are not held for the
purpose of or with the effect of changing or influencing the control of the
Issuer of the securities and were not acquired and are not held in connection
with or as a participant in any transaction having such purpose or effect.


 SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.


DATED: February 7, 2011 as of December 31, 2010

LEON G. COOPERMAN, individually,
and as Managing Member of Omega
Associates, L.L.C. on behalf of
Omega Capital Partners, L.P.,
Omega Capital Investors, L.P.,
Omega Equity Investors, L.P.,and
as President of Omega Advisors, Inc.

By /s/ ALAN M. STARK
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 Alan M. Stark
 Attorney-in-Fact
Power of Attorney on file

ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001).




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