NEW YORK, July 31 (Reuters) - Investment giant KKR KKR.N reported a 9% rise in adjusted net income for the second quarter on Thursday, bolstered by an increase in fee-related earnings.
The New York-based firm said its adjusted net income hit $1.1 billion, or $1.18 per adjusted share. This came in ahead of an LSEG SmartEstimate of $1.13 per share.
Fee-related earnings rose 17% to $887 million, spurred by growth in management fees and its capital markets business.
Market volatility was high in the quarter, stemming from U.S. President Donald Trump's pledges to impose tariffs on trading partners around the world. Fee-related income, however, can provide money managers with stable earnings when markets are turbulent. Large firms like KKR also benefit from having diversified portfolios.
KKR's assets under management now total $686 billion, a 14% annual increase. It raised $28 billion in new capital in the quarter.
Recent announcements from KKR include the acquisition of HealthCare Royalty Partners, which buys rights to the royalties flowing from pharmaceutical companies' drug sales.
KKR also teamed up with Capital Group to seek SEC approval for a fund that blends public and private equity, looking to capitalize on rising demand from wealthy retail investors.
Separately, KKR said it had raised $6.5 billion to invest in asset-backed finance. It said this fund will focus on opportunities to buy debt similar to the deal it and PIMCO struck with motorcycle maker Harley Davidson HOG.N.
(Reporting by Isla Binnie; Editing by Edwina Gibbs)
((isla.binnie@thomsonreuters.com; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
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