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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 TkPe9XuuDXoDY+il9RM2iZueiu1n9zo0wiGe91m4LC4VTMMBo1RVZx0kQUrV9Wnn
 1GKhrvT9SPrrPh+PZ9EYIg==

<SEC-DOCUMENT>0001179110-07-018857.txt : 20070926
<SEC-HEADER>0001179110-07-018857.hdr.sgml : 20070926
<ACCEPTANCE-DATETIME>20070926163219
ACCESSION NUMBER:		0001179110-07-018857
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070924
FILED AS OF DATE:		20070926
DATE AS OF CHANGE:		20070926

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KKR Financial Holdings LLC
		CENTRAL INDEX KEY:			0001386926
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				113801844
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		555 CALIFORNIA STREET, 50TH FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
		BUSINESS PHONE:		(415) 315-3620

	MAIL ADDRESS:	
		STREET 1:		555 CALIFORNIA STREET, 50TH FLOOR
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Licht Ely Louis
		CENTRAL INDEX KEY:			0001330285

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33437
		FILM NUMBER:		071136877

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(415) 315-3692

	MAIL ADDRESS:	
		STREET 1:		FOUR EMBARCADERO CENTER, SUITE 2050
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94111
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-09-24</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001386926</issuerCik>
        <issuerName>KKR Financial Holdings LLC</issuerName>
        <issuerTradingSymbol>KFN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001330285</rptOwnerCik>
            <rptOwnerName>Licht Ely Louis</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KKR FINANCIAL HOLDINGS LLC</rptOwnerStreet1>
            <rptOwnerStreet2>555 CALIFORNIA STREET, 50TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>SAN FRANCISCO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94104</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <transactionDate>
                <value>2007-09-24</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3793</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>14.40</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>18322</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Subscription Rights (right to buy)</value>
                <footnoteId id="F2"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>14.40</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-09-24</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3793</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>14.40</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2007-08-31</value>
            </exerciseDate>
            <expirationDate>
                <value>2007-09-19</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>3793</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Includes 9,529 restricted common shares.</footnote>
        <footnote id="F2">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.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>David A. Netjes, as Attorney-in-Fact</signatureName>
        <signatureDate>2007-09-26</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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