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: 12,421,087*
Shares Bene-
ficially 6. Shared Voting Power 7,466,913
Owned by
Each Report- 7. Sole Dispositive Power: 12,421,087*
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: 19,888,000*

* 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): 11.1%

 The beneficial ownership percentage set forth herein has been calculated
based on 178,145,482 Shares of the Issuer outstanding on October 28, 2011, as
reported on the Issuer's Form 10-Q for the quarter ending September 30, 2011,
plus 1,746,773 Shares that would be outstanding if the Issuer's DEBT deemed
owned by the Reporting Person was converted into Shares.
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12. Type of Reporting Person: IN
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CUSIP No. 48248A306
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Item 1(a) Name of Issuer: KKR Financial Holdings LLC (the "Issuer").

Item 1(b) Address of the Issuer's Principal Executive Offices:

 555 California Street, 50th Floor
 San Francisco CA 94104


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 State 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 married to an individual named Toby Cooperman. Mr.
Cooperman has an adult son named Michael S. Cooperman. The Michael S. Cooperman
WRA Trust( the "WRA Trust"), is an irrevocable trust for the benefit of Michael
S. Cooperman. Mr. Cooperman has investment authority over the Michael S.
Cooperman and the WRA Trust accounts.


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CUSIP No. 48248A306
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Item 2 (a) Name of Person Filing: (cont.)

 Mr. Cooperman is one of the Trustees of the Leon and Toby Cooperman Family
Foundation (the "Foundation"), a charitable trust dated December 16, 1981. The
other trustees are his wife, Toby Cooperman, his sons, Wayne Cooperman and
Michael S. Cooperman, and his daughter-in-law, Jodi 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.

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 3. Statement is filed pursuant to Sections 240.13d-1(b) or 240.13d-2(b)
 or (c):

 This Item 3 is not applicable.

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

 Mr. Cooperman may be deemed the beneficial owner of 19,888,000 Shares which
constitutes approximately 11.1% 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; 279,274* Shares owned
by the Foundation; 3,454,032* Shares owned by Mr. Cooperman; 10,360 Shares owned
by JCF, 132,124* Shares owned by Michael S. Cooperman; 528,494* Shares owned by
the WRA Trust and 52,849* Shares owned by NJ Arts.

* This includes Shares that are deemed owned by virtue of the Issuer's DEBT
 that is convertible into Shares. The number of Shares have increased over
 the past year due to changes in the conversion ratio of the Issuer's DEBT.

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

 (i) Sole power to vote or to direct the vote: 12,421,087
 (ii) Shared power to vote or to direct the vote: 7,466,913
 (iii) Sole power to dispose or to direct the disposition of: 12,421,087
 (iv) Shared power to dispose or to direct the disposition of: 7,466,913

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

 This Item 5 is not applicable.
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CUSIP No. 48248A306
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Item 6. Ownership of More than Five Percent on Behalf of Another Person:

 This Item 6 is not applicable.

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 6, 2012 as of December 31, 2011

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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