NEW YORK, July 31 (Reuters) - Private equity firm KKR &

Co ( KKR ) said on Wednesday its second-quarter adjusted net

income jumped 49% year-on-year, driven by an increase in

management, transaction and performance fees, as well as

earnings from its annuities business.

KKR's adjusted net income rose to $972 million from $653

million a year earlier. This translated into adjusted net income

per share of $1.09. That was slightly ahead of the average

analyst estimate of $1.07, according to LSEG data.

The New York-based firm reported record fee-related earnings

of $755 million, a 25% increase from the previous year. This

growth was fueled by fees generated from managing $601 billion

in total assets, up 16% year-over-year, along with transaction

fees from arranging financing for its own deals.

KKR reported management fees of $847 million for the

quarter, while net transaction and monitoring fees totaled $223

million. Capital markets activities contributed $192 million to

revenues.

The firm has been cashing out on more of its investments.

It and BlackRock Inc ( BLK ) sold their 40% stake in Abu Dhabi

National Oil Co's oil pipeline network to an Abu Dhabi-based

firm earlier this year. Earlier this month, KKR took financial

software maker OneStream public, raising $490 million.

For the quarter, KKR reported total operating earnings of $1

billion, a 36% year-over-year increase. This metric includes

fee-related earnings from its asset management unit, returns

from long-term private equity holdings, and profits from its

Global Atlantic insurance division.

KKR's private equity portfolio appreciated by 4% in the

second quarter, opportunistic real estate funds rose 1%, and

leveraged credit funds rose by 2%.

KKR amassed $32 billion in new investor capital, marking the

second most active fundraising quarter in the history of the

firm, driven by inflows at Global Atlantic, opportunistic

asset-based finance, direct lending in the U.S. and Europe, and

collateralized loan obligation formation.

It also deployed $23 billion in investments, up from $10

billion one year ago, and declared a quarterly dividend of 17.5

cents.