X0303 4 2010-04-15 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 Phantom Shares 2010-04-15 4 A 0 900.62 6.81 A Common Shares 900.62 32700.62 D Each phantom share is the economic equivalent of one common share. The phantom shares become payable, in cash or common shares, at the election of the Company, upon the earlier of (i) the first day of January following the reporting person's termination of service as a director or (ii) an election date pre-selected by the reporting person, and in any event in cash or common shares, at the election of the reporting person, upon the occurrence of a change in control of the Company. William F. Aldinger 2010-04-19