KKR Financial Holdings LLC

A leading specialty finance company. KKR Financial Holdings LLC (NYSE: KFN) has a balance sheet composition that underscores its fundamental strategy.

A Multi-Asset Class Financial Company

KKR Financial Holdings LLC (NYSE:KFN) — is a publicly traded specialty finance company that focuses on making investments that build long-term value and generate competitive risk-adjusted returns using moderate leverage. KFN's core business strategy focuses on investing in corporate debt, including senior secured loans, mezzanine loans, and high yield securities with a particular emphasis on debt issued by large capitalization firms with broad geographic and product offerings.

KKR Financial Holdings LLC is committed to fundamental and patient investing, disciplined execution, and active portfolio management that enable it to generate competitive, leveraged risk-adjusted returns for its investors.

Our portfolio composition is as follows:

Investment Portfolio Composition

Corporate Loans

85%

Corporate Bonds

10%

RMBS

4%

Equities

1%

Corporate Loan Portfolio

First Lien

89%

Second Lien

8%

Mezzanine

3%

Corporate Bonds

Senior Unsecured

66%

Senior Secured

12%

Subordinated

22%

Source: KKR Financial Holdings LLC. Data as of March 31, 2009