Davis Polk advised Morgan Stanley & Co. Incorporated as sole book-running manager in connection with a $170 million SEC-registered offering of 18,000,000 common shares of KKR Financial Holdings LLC.

Based in San Francisco, California, KKR Financial Holdings is a specialty finance company that uses leverage with the objective of generating competitive risk-adjusted returns. KKR Financial Holdings invests in financial assets consisting primarily of below investment-grade debt.

The Davis Polk corporate team included partner Joseph A. Hall and associates Lena V. Kiely, Jason Roomer, E. Ashley Harris, Angela W. Cho, Meng Ding, of the Hong Kong office, and Robert Young (not yet admitted). Partner Po Sit and associate M. Ryan LaRosa, of the Menlo Park office, provided tax advice. Associate Catherine L. Martin provided ’40 Act advice. Natalie Chan was the legal assistant for the transaction. Except as otherwise mentioned above, all members of the Davis Polk team are based in the New York office.