KKR & Co (KKR.N) reported a significant 49% increase in adjusted net income for the second quarter, reaching $972 million, up from $653 million the previous year.
This equated to an adjusted net income per share of $1.09, surpassing analysts’ expectations of $1.07, according to LSEG data.
The firm saw record fee-related earnings of $755 million, a 25% increase year-over-year.
This boost was attributed to fees from managing $601 billion in total assets, a 16% increase, along with transaction fees from arranging financing for its deals.
Management fees amounted to $847 million, while net transaction and monitoring fees totaled $223 million.
Additionally, capital markets activities contributed $192 million to revenues.
KKR’s stock rose 3.72% to $124.25 early on Wednesday, giving the company a market value of around $110 billion.
The company has been liquidating more of its investments, including selling its 40% stake in Abu Dhabi National Oil Co’s pipeline network with BlackRock Inc (BLK.N).
KKR also recently took financial software maker OneStream public, raising $490 million.
“Deal pipelines are up and visibility is high,” stated KKR CEO Scott Nuttall.
“Unless something happens to disrupt this momentum, we expect to see increased activity in the second half of this year relative to the first.”
KKR reported total operating earnings of $1 billion, up 36% from the previous year.
This included fee-related earnings from its asset management operations, returns from private equity holdings, and profits from its Global Atlantic insurance division.
The private equity portfolio appreciated by 4%, opportunistic real estate funds rose by 1%, and leveraged credit funds increased by 2%.
In the second quarter, KKR raised $32 billion in new investor capital, the second-highest in its history.
This was driven by inflows into Global Atlantic, asset-based finance, direct lending, and collateralized loan obligations.
The firm invested $23 billion, up from $10 billion the previous year, and declared a quarterly dividend of 17.5 cents.