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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED
  STATES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">SECURITIES
  AND EXCHANGE COMMISSION</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington, DC 20549</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
  REPORT</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant
  to Section&nbsp;13 or 15(d)&nbsp;of the Securities Exchange Act of 1934</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest event reported):<b> May&nbsp;1,
  2008</b></font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">KKR
  Financial Holdings LLC</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.62%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.84%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.28%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">001-33437</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.26%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">11-3801844</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.62%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction of incorporation)</font></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.84%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.28%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.26%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(I.R.S.&nbsp;Employer Identification No.)</font></p>
    </td>
   </tr>
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    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.62%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.84%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="29%" valign="top" style="padding:0in 0in 0in 0in;width:29.28%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">555 California Street, 50th Floor</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">San Francisco, California</font></b></p>
    </td>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.26%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">94104</font></b></p>
    </td>
   </tr>
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    <td width="64%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:64.74%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.26%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
   </tr>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">415-315-3620</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">N/A</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report.)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if the Form&nbsp;8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions (see General Instruction A.2.
  below):</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Written communications pursuant to Rule&nbsp;425 under
  the Securities Act (17 CFR 230.425)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Soliciting material pursuant to Rule&nbsp;14a-12 under
  the Exchange Act (17 CFR 240.14a-12)</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pre-commencement communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under
  the Exchange Act (17 CFR 240.14d-2(b))</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="2" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Pre-commencement communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under
  the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105536\08-12832-1\task2907852\12832-1-ba.htm',USER='105536',CD='May  1 06:08 2008' -->
  
  
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  <div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM
  2.02&#160; Results of Operations and Financial
  Condition.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On
  May&nbsp;1, 2008, KKR Financial Holdings LLC (the &#147;Company&#148;) issued an earnings
  release announcing its financial results for the first quarter ended March&nbsp;31,
  2008. A copy of the earnings release is attached as Exhibit&nbsp;99.1.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Non-GAAP
  Financial Information</font></u></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
  the attached earnings release, in addition to the consolidated balance sheet
  and statements of operations presented in accordance with accounting principles
  generally accepted in the U.S. (&#147;GAAP&#148;), the Company discloses certain
  information on an economic (&#147;Economic&#148;) basis. The Company&#146;s Economic basis of
  presenting financial information differs from GAAP presentation due to the
  following three items:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Joint Structured Finance Transactions</font></u></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company consolidates five collateralized loan obligation entities (collectively,
  the &#147;Joint CLOs&#148;) because it is the primary beneficiary of these entities as
  defined by Financial Accounting Standards Board Interpretation No.&nbsp;46R, <i>Consolidation of Variable Interest Entities</i>. Because these
  entities are structured finance vehicles with no economic equity interests,
  subordinated noteholders receive the net income from these entities. The
  Company holds the majority of the subordinated notes while the KKR Strategic
  Capital Funds, affiliates of the Company&#146;s manager, hold the remaining minority
  percentage of the subordinated notes. In accordance with GAAP, the Company
  consolidates the Joint CLOs on its consolidated financial statements with the
  minority interest in the Joint CLOs reflected as debt on the Company&#146;s
  consolidated balance sheet. The net income or loss of the Joint CLOs is
  reflected on the Company&#146;s consolidated statements of operations presented in
  accordance with GAAP through the consolidated income and expense accounts of
  the Joint CLOs. The net income or loss allocable to the minority interest
  holders of the subordinated notes is included as interest expense on the
  Company&#146;s consolidated statements of operations presented in accordance with
  GAAP. Adjustments to the Company&#146;s consolidated statements of operations
  presented under GAAP to arrive at the Economic consolidated statements of
  operations due to the Joint CLOs do not change net income (loss), rather they
  reflect the Company&#146;s proportionate share of income and expenses from the Joint
  CLOs based on the Company&#146;s percentage of the subordinated notes in the Joint
  CLOs. Similarly, the Company&#146;s consolidated balance sheet presented in
  accordance with GAAP reflects the assets and liabilities of the Joint CLOs and
  the unrealized gains (losses) on investments classified as available-for-sale
  are included in accumulated other comprehensive income (loss), a component of
  shareholders&#146; equity. The Economic consolidated balance sheet reflects the
  Company&#146;s proportionate share of the assets and liabilities of the Joint CLOs
  and the Company&#146;s proportionate share of the unrealized gains (losses) from
  securities classified as available-for-sale in accumulated other comprehensive
  income (loss).</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Presentation
  of Joint CLOs on an Economic basis is consistent with management&#146;s internal
  reporting used to evaluate the Company&#146;s portfolio, liquidity and leverage, and
  to measure its results against forecasted yield and other benchmark portfolio
  measures.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105536\08-12832-1\task2907852\12832-1-ba.htm',USER='105536',CD='May  1 06:08 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Share-Based Compensation</font></u></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Included
  in the Company&#146;s non-investment expenses on its consolidated statements of
  operations presented in accordance with GAAP is share-based compensation
  expense, or benefit, that is recognized by the Company in accordance with Statement
  of Financial Accounting Standards No.&nbsp;123R, <i>Share-Based
  Payment</i>, for common share options and restricted common shares
  granted by the Company to its manager and to members of its Board of Directors.
  The Company&#146;s Economic consolidated statements of operations exclude
  share-based compensation expense or benefit.</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Presentation
  of the Company&#146;s results of operations excluding share-based compensation
  expense or benefit is consistent with how the Company evaluates its periodic
  results for purposes of determining shareholder distributions, because
  share-based compensation expense or benefit is a non-cash item for the Company.</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Discontinued Operations</font></u></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company&#146;s Economic balance sheet presents the net assets of discontinued
  operations.&#160; Presentation of the
  Company&#146;s discontinued operations on a net asset basis is consistent with how
  the Company evaluates its discontinued operations.</font></p>
  
  <p style="margin:0in 0in .0001pt 35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company presents the following non-GAAP financial measures in the attached
  earnings release that incorporate the adjustments described above:</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Economic net income (loss): This is the
  Company&#146;s net income (loss) adjusted to exclude share-based compensation
  expense or benefit.</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Adjusted economic earnings per diluted common
  share:&#160; This is the Company&#146;s economic
  net income (loss) per diluted common share adjusted to exclude unrealized gains
  and losses from investments and derivatives.</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Economic balance sheet: This is the Company&#146;s
  consolidated balance sheet presented in accordance with GAAP adjusted to
  reflect the aforementioned adjustments for Joint CLOs and share-based
  compensation expense or benefit.</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Economic statements of operations: This is
  the Company&#146;s statements of operations for the stated periods presented in
  accordance with GAAP adjusted to reflect the aforementioned adjustments for
  Joint CLOs and share-based compensation expense or benefit.</font></p>
  
  <p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  Company believes that these non-GAAP financial measures provide useful
  information to investors by providing an understanding of the Company&#146;s
  financial condition and operating performance by which liquidity and periodic
  financial results, for purposes of evaluating the net income available for
  distributions to shareholders, can be assessed.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  non-GAAP financial measures are provided as supplemental information and should
  not be relied upon as an alternative to GAAP. Reconciliations of these non-GAAP
  financial measures to GAAP measures are provided in the attached.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  information in this Current Report, including the exhibit hereto, is being
  furnished and shall not be deemed &#147;filed&#148; for the purpose of Section&nbsp;18 of
  the Securities Exchange Act of 1934, as amended, or otherwise subject to the
  liabilities of that Section. The information in this Current Report shall not
  be incorporated by reference into any registration statement or other document
  pursuant to the Securities Act of 1933, as amended.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ITEM
  9.01&#160; Financial Statements and Exhibits.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;99.1&#160; Earnings release regarding the financial
  results for the first quarter ended March&nbsp;31, 2008.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105536\08-12832-1\task2907852\12832-1-ba.htm',USER='105536',CD='May  1 06:08 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
  to the requirements of the Securities Exchange Act of 1934, as amended, the
  Registrant has duly caused this Report to be signed on its behalf by the
  undersigned, thereunto duly authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KKR
    Financial Holdings LLC</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant)</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date:
    May&nbsp;1, 2008</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="44%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
    JEFFREY B. VAN HORN</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jeffrey
    B. Van Horn</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief
    Financial Officer</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.24%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.5%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Principal
    Financial and Accounting Officer)</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105536\08-12832-1\task2907852\12832-1-ba.htm',USER='105536',CD='May  1 06:08 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT&nbsp;INDEX</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="7%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:7.36%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Exhibit<br>
    Number</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.32%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="90%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:90.32%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">Description</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="7%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:7.36%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">99.1</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="90%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:90.32%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Earnings
    release regarding the financial results for the first quarter ended March&nbsp;31,
    2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105536\08-12832-1\task2907852\12832-1-ba.htm',USER='105536',CD='May  1 06:08 2008' -->
  
  
  </body>
  
  </html>
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metadata_filer: {"company-data": {"conformed-name": "KKR Financial Holdings LLC", "cik": "0001386926", "assigned-sic": "6199", "irs-number": "113801844", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-33437", "film-number": "08795186"}, "business-address": {"street1": "555 CALIFORNIA STREET, 50TH FLOOR", "city": "SAN FRANCISCO", "state": "CA", "zip": "94104", "phone": "(415) 315-3620"}, "mail-address": {"street1": "555 CALIFORNIA STREET, 50TH FLOOR", "city": "SAN FRANCISCO", "state": "CA", "zip": "94104"}}
text: UNITED
  STATES
  SECURITIES
  AND EXCHANGE COMMISSION
  Washington, DC 20549
  FORM 8-K
  CURRENT
  REPORT
  Pursuant
  to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of earliest event reported):
  May 1,
  2008
  KKR
  Financial Holdings LLC
  (Exact name of registrant as specified in its charter)
  Delaware
  001-33437
  11-3801844
  (State or other jurisdiction of incorporation)
  (Commission File Number)
  (I.R.S. Employer Identification No.)
  555 California Street, 50th Floor
  San Francisco, California
  94104
  (Address of principal executive offices)
  (Zip Code)
  415-315-3620
  (Registrant's telephone number, including area code)
  N/A
  (Former name or former address, if changed since last report.)
  Check the appropriate box below if the Form 8-K
  filing is intended to simultaneously satisfy the filing obligation of the
  registrant under any of the following provisions (see General Instruction A.2.
  below):
  o
  Written communications pursuant to Rule 425 under
  the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12 under
  the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under
  the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under
  the Exchange Act (17 CFR 240.13e-4(c))
  ITEM
  2.02  Results of Operations and Financial
  Condition.
  On
  May 1, 2008, KKR Financial Holdings LLC (the "Company") issued an earnings
  release announcing its financial results for the first quarter ended March 31,
  2008. A copy of the earnings release is attached as Exhibit 99.1.
  Non-GAAP
  Financial Information
  In
  the attached earnings release, in addition to the consolidated balance sheet
  and statements of operations presented in accordance with accounting principles
  generally accepted in the U.S. ("GAAP"), the Company discloses certain
  information on an economic ("Economic") basis. The Company's Economic basis of
  presenting financial information differs from GAAP presentation due to the
  following three items:
  Joint Structured Finance Transactions
  The
  Company consolidates five collateralized loan obligation entities (collectively,
  the "Joint CLOs") because it is the primary beneficiary of these entities as
  defined by Financial Accounting Standards Board Interpretation No. 46R,
  Consolidation of Variable Interest Entities
  . Because these
  entities are structured finance vehicles with no economic equity interests,
  subordinated noteholders receive the net income from these entities. The
  Company holds the majority of the subordinated notes while the KKR Strategic
  Capital Funds, affiliates of the Company's manager, hold the remaining minority
  percentage of the subordinated notes. In accordance with GAAP, the Company
  consolidates the Joint CLOs on its consolidated financial statements with the
  minority interest in the Joint CLOs reflected as debt on the Company's
  consolidated balance sheet. The net income or loss of the Joint CLOs is
  reflected on the Company's consolidated statements of operations presented in
  accordance with GAAP through the consolidated income and expense accounts of
  the Joint CLOs. The net income or loss allocable to the minority interest
  holders of the subordinated notes is included as interest expense on the
  Company's consolidated statements of operations presented in accordance with
  GAAP. Adjustments to the Company's consolidated statements of operations
  presented under GAAP to arrive at the Economic consolidated statements of
  operations due to the Joint CLOs do not change net income (loss), rather they
  reflect the Company's proportionate share of income and expenses from the Joint
  CLOs based on the Company's percentage of the subordinated notes in the Joint
  CLOs. Similarly, the Company's consolidated balance sheet presented in
  accordance with GAAP reflects the assets and liabilities of the Joint CLOs and
  the unrealized gains (losses) on investments classified as available-for-sale
  are included in accumulated other comprehensive income (loss), a component of
  shareholders' equity. The Economic consolidated balance sheet reflects the
  Company's proportionate share of the assets and liabilities of the Joint CLOs
  and the Company's proportionate share of the unrealized gains (losses) from
  securities classified as available-for-sale in accumulated other comprehensive
  income (loss).
  Presentation
  of Joint CLOs on an Economic basis is consistent with management's internal
  reporting used to evaluate the Company's portfolio, liquidity and leverage, and
  to measure its results against forecasted yield and other benchmark portfolio
  measures.
  2
  Share-Based Compensation
  Included
  in the Company's non-investment expenses on its consolidated statements of
  operations presented in accordance with GAAP is share-based compensation
  expense, or benefit, that is recognized by the Company in accordance with Statement
  of Financial Accounting Standards No. 123R,
  Share-Based
  Payment
  , for common share options and restricted common shares
  granted by the Company to its manager and to members of its Board of Directors.
  The Company's Economic consolidated statements of operations exclude
  share-based compensation expense or benefit.
  Presentation
  of the Company's results of operations excluding share-based compensation
  expense or benefit is consistent with how the Company evaluates its periodic
  results for purposes of determining shareholder distributions, because
  share-based compensation expense or benefit is a non-cash item for the Company.
  Discontinued Operations
  The
  Company's Economic balance sheet presents the net assets of discontinued
  operations.  Presentation of the
  Company's discontinued operations on a net asset basis is consistent with how
  the Company evaluates its discontinued operations.
  The
  Company presents the following non-GAAP financial measures in the attached
  earnings release that incorporate the adjustments described above:
  ·
  Economic net income (loss): This is the
  Company's net income (loss) adjusted to exclude share-based compensation
  expense or benefit.
  ·
  Adjusted economic earnings per diluted common
  share:  This is the Company's economic
  net income (loss) per diluted common share adjusted to exclude unrealized gains
  and losses from investments and derivatives.
  ·
  Economic balance sheet: This is the Company's
  consolidated balance sheet presented in accordance with GAAP adjusted to
  reflect the aforementioned adjustments for Joint CLOs and share-based
  compensation expense or benefit.
  ·
  Economic statements of operations: This is
  the Company's statements of operations for the stated periods presented in
  accordance with GAAP adjusted to reflect the aforementioned adjustments for
  Joint CLOs and share-based compensation expense or benefit.
  The
  Company believes that these non-GAAP financial measures provide useful
  information to investors by providing an understanding of the Company's
  financial condition and operating performance by which liquidity and periodic
  financial results, for purposes of evaluating the net income available for
  distributions to shareholders, can be assessed.
  The
  non-GAAP financial measures are provided as supplemental information and should
  not be relied upon as an alternative to GAAP. Reconciliations of these non-GAAP
  financial measures to GAAP measures are provided in the attached.
  The
  information in this Current Report, including the exhibit hereto, is being
  furnished and shall not be deemed "filed" for the purpose of Section 18 of
  the Securities Exchange Act of 1934, as amended, or otherwise subject to the
  liabilities of that Section. The information in this Current Report shall not
  be incorporated by reference into any registration statement or other document
  pursuant to the Securities Act of 1933, as amended.
  ITEM
  9.01  Financial Statements and Exhibits.
  Exhibit 99.1  Earnings release regarding the financial
  results for the first quarter ended March 31, 2008.
  3
  SIGNATURES
  Pursuant
  to the requirements of the Securities Exchange Act of 1934, as amended, the
  Registrant has duly caused this Report to be signed on its behalf by the
  undersigned, thereunto duly authorized.
  KKR
    Financial Holdings LLC
  (Registrant)
  Date:
    May 1, 2008
  /s/
    JEFFREY B. VAN HORN
  By:
  Jeffrey
    B. Van Horn
  Chief
    Financial Officer
  (Principal
    Financial and Accounting Officer)
  4
  EXHIBIT INDEX
  Exhibit
  Number
  Description
  99.1
  Earnings
    release regarding the financial results for the first quarter ended March 31,
    2008.
  5