X0202 4 2005-07-14 0 0001301508 KKR Financial Corp KFN 0001329297 Fanlo Saturnino Sixto C/O KKR FINANCIAL CORP. FOUR EMBARCADERO CENTER, SUITE 2050 SAN FRANCISCO CA 94111 1 1 0 0 President and CEO Common Stock 2005-07-14 4 A 0 1875000 0 A 3068867 I See Note Common Stock 162500 D Shares of restricted common stock, vesting in one-third increments on July 14, 2006, July 14, 2007 and July 14, 2008. The shares of restricted common stock are held by KKR Financial LLC. The Reporting Person has an ownership interest in KKR Financial LLC and may be deemed to be the beneficial owner of such shares of restricted common stock held by KKR Financial LLC. However, the Reporting Person disclaims that he is the beneficial owner of such shares of restricted common stock, except to the extent of his pecuniary interest in such shares of restricted common stock. The filing of this statement shall not be deemed an admission that, for purposes of Section 16 of the Securities Exchange Act of 1934 or otherwise, the Reporting Person is the beneficial owner of all such shares of restricted common stock covered by this statement. Saturnino S. Fanlo 2005-07-15