X0202 4 2007-09-24 0 0001386926 KKR Financial Holdings LLC KFN 0001074607 ALDINGER WILLIAM F III C/O KKR FINANCIAL HOLDINGS LLC 555 CALIFORNIA STREET, 50TH FLOOR SAN FRANCISCO CA 94104 1 0 0 0 Common Shares 2007-09-24 4 X 0 1773 14.40 A 20800 D Subscription Rights (right to buy) 14.40 2007-09-24 4 X 0 1773 14.40 D 2007-08-31 2007-09-19 Common Shares 1773 0 D Includes 9,127 restricted common shares. These are pro rata subscription rights acquired pursuant to the issuer's rights offering, which the reporting person exercised to acquire the securities which are reported in Column 4 of Table I. The issuer issued 0.19430 non-transferable subscription rights for each common share representing limited liability company interests in the issuer owned on August 30, 2007, the record date for the rights offering, and each subscription right entitled the holder to subscribe for 1 common share at a subscription price of $14.40 per share. David A. Netjes, as Attorney-in-Fact 2007-09-26