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KKR assets increase 8.5% in quarter, 29% for year

KKR & Co. reported $191.3 billion in assets under management as of June 30, up 8.5% from, and up 29% from a year earlier, according to the alternative investment firm's earnings report released Thursday.

KKR attributed the increase to new capital raised totaling $40 billion in the 12 months ended June 30. Also during the quarter, KKR closed a deal with FS Investments to create a business development company business, adding $13.2 billion in AUM. The increases were partially offset by distributions to limited partners in its private equity funds and distributions made in its public markets business.

"On July 1st, we completed our conversion from a partnership to a corporation. We believe this decision, designed to simplify our structure and broaden our investor base, together with continued strong performance, increases our ability to generate significant long-term equity value for all of our shareholders," said Henry R. Kravis and George R. Roberts, co-chairmen and co-CEOs, in the earnings release.

KKR's private markets AUM was $102.4 billion as of June 30, flat from three months earlier and up 20.5% from a year earlier. KKR's public markets business AUM was $88.9 billion as of June 30, up 20% from March 31 and up 40% from $63.5 billion as of June 30, 2017.

Fees and other revenue totaled $413.8 million in the second quarter, up from $394.4 million a quarter earlier and $380.8 million in the year-earlier quarter. Capital allocation-based income, which includes carried interest, was $557.8 million in the second quarter, up from $78.2 million in the first quarter and down from $635 million a year earlier.

GAAP net income was $680.4 million, compared to $170.1 million for the quarter ended March 31 and $405.6 million a year earlier.