Nov 7 (Reuters) - KKR reported a rise in

third-quarter profit that beat Wall Street's expectations on

Friday, boosted by strong fundraising, particularly in its

insurance unit and credit.

Adjusted net income of $1.27 billion, or $1.41 per share,

surpassed the $1.17 billion, or $1.30 per share, which analysts

on average had expected from the New York-based alternative

asset manager, according to estimates compiled by LSEG.

Fee-related earnings, which reflect fees charged for

managing a growing stash of assets, rose to $1 billion. Total

assets rose to $723 billion on the back of $43 billion in fresh

capital raised in the quarter.

KKR's co-CEOs Scott Nuttall and Joe Bae have set a target

for assets to reach $1 trillion by 2030.

Transaction fees from the capital markets business, which

arranges financing for companies in its portfolio and for

clients dipped 35% from a year ago to $276 million.

Along with peers Blackstone, whose assets have

breached the $1 trillion mark, and Apollo, which hopes

to get there by 2026, KKR has added new business lines to grow

beyond the traditional private equity strategy of buying and

selling businesses.

Private equity firms have been all the keener to branch out

as higher interest rates and market volatility hampered their

ability to profit from selling companies they bought during a

long period of lower rates at prices that in some cases now look

expensive.

Among those newer businesses, insurer Global Atlantic, which

represents a third of the firm's assets, saw operating earnings

rise 28%.

Analysts have been watching the retirement segments at KKR

and Apollo for any signs of strain on profits from selling

annuities, which are sold for a lump sum and guarantee periodic

payouts.

KKR also tapped the wealthy individuals who alternative

investment firms are increasingly targeting. Its K-Series

business offering funds to retail investors grew to $29 billion

from $14 billion a year ago.

One result of the generally slower pace of exiting private

equity investments through sales or refinancing has been a

squeeze on private equity funds' ability to return capital to

their investors.

In turn, some of them have become reluctant to make

commitments to new funds. KKR said on Friday it has raised $17.5

billion for its latest North America-focused fund, which people

familiar with the matter said last summer had started marketing

to investors with a target of around $20 billion.

Dry powder, or money investors have pledged but has not yet

been used, totaled $126 billion. During the quarter, KKR closed

a deal to buy a majority stake in biopharma royalty acquisition

company Healthcare Royalty Partners.

Global Atlantic received a $2 billion investment from Japan

Post Insurance Company.

After the end of the quarter, KKR teamed up with Apollo to

invest $7 billion in Keurig Dr Pepper ( KDP ), a deal which

helped ease investor concerns about the beverage group's debt

pile after it bought coffee maker JDE Peet's.

(Reporting by Isla Binnie in New York and Arasu Kannagi Basil

in Bengaluru; Editing by Arun Koyyur)