KKR names new CEO in management shake-up

NEW YORK (Reuters) - KKR Financial Holdings LLC(KFN.N), a publicly traded debt fund managed by private equity firm Kohlberg Kravis Roberts & Co, named William Sonneborn as its chief executive in a shake-up that saw two of its top executives resign.

Sonneborn will immediately succeed Saturnino Fanlo as chief executive and a member of the board, the company said in a statement, without providing details about Fanlo's resignation.

It also said Michael McFerran would immediately assume the role of interim chief operating officer following the resignation of David Netjes.

"Bill's broad experience in the asset management business speaks volumes about his ability to lead KFN through today's turbulent markets. He is the right person to lead the business and rebuild shareholder value," Chairman of the Board of Directors Paul Hazen said.

Last month, KKR Financial suspended its third-quarter dividend as it arranged for more time to pay off its borrowings.

At the same time, it told investors it would explore various strategic options, including a change in corporate structure, a conversion to a bank and the acquisition of a depositary.

Founded in July 2004, KKR Financial invests in such assets as corporate loans, high yield corporate bonds and distressed debt securities.

Shares closed down 10 cents, or nearly 12 percent, at 75 cents on the New York Stock Exchange. The San Francisco-based company listed on the NYSE in June 2005 at $24 a share.

Sonneborn will also be head of KKR Asset Management, a new unit that KKR said it formed, which will manage KKR Financial.

Kohlberg Kravis Roberts & Co KKR.UL itself had plans to become a publicly listed entity this year, although in November it delayed those plans to 2009.

(Reporting by Paul Thomasch; Additional reporting by Megan Davies; Editing by Bernard Orr, Gary Hill)