NEW YORK, July 31 (Reuters) - Private equity group 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 company 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's shares were up 3.72% at $124.25 early on Wednesday,

giving the private equity group a market value of about $110

billion.

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 company has been cashing out on more of its

investments. KKR 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.

"Deal pipelines are up and visibility is high," said KKR CEO

Scott Nuttall. "Unless something happens to disrupt his

momentum, we expect to see increased activity in the second half

of this year relative to the first."

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 business, 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 its history, 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.