KKR & Co. Inc. (KKR) stock rose Monday after the investment firm reported better-than-expected third-quarter earnings, supported by higher fee-related earnings, while assets under management also increased.

KKR reported adjusted earnings of $1.78 per share, beating analysts' expectations of $1.59.

Total asset management segment revenue reached $2.608 billion, compared with analysts' estimates of $2.596 billion.

Fee-related earnings jumped 27% year over year to $1.3 billion, or $1.42 per adjusted share. Total operating earnings climbed 25% to $1.7 billion, or $1.88 per adjusted share.

Insurance operating earnings totaled $230 million, including a $26 million charge tied to Global Atlantic's annual actuarial review. Excluding the charge, earnings would have reached $257 million.

KKR co-CEOs Joseph Y. Bae and Scott C. Nuttall said the firm posted record fee-related earnings, total operating earnings, and adjusted net income per share for the second straight quarter, both on a quarterly basis and over the trailing 12 months.

They highlighted record levels of investment monetizations and capital distributions to clients. KKR expects to return more than $40 billion to clients in 2026, surpassing its previous annual record by more than 50%.

KKR's Assets Under Management Top $800 Billion

KKR's assets under management grew 11% year over year to $804 billion. Fee-paying assets under management also increased 11% to $648 billion.

The company raised $25 billion in new capital during the quarter and $116 billion over the past 12 months.

Meanwhile, capital invested reached $20 billion for the quarter and $98 billion over the past year.

Private Equity, Credit and Infrastructure Drive Growth

KKR's private equity assets under management climbed 15% to $256 billion. The segment raised $4 billion in new capital and invested $3 billion during the quarter.

Assets under management in credit and liquid strategies rose 7% to $337 billion. The business raised $14 billion in new capital and invested $8 billion, with investment activity focused primarily on asset-based finance.

Real assets under management rose 14% to $212 billion. The segment raised $7 billion and invested $8 billion during the quarter.

KKR's Global Infrastructure V fund held its final close in August with $19.2 billion in commitments, making it the company's largest infrastructure fund raised to date.

KKR Expands Buyback Program, Announces Dividend

Between June 30 and Nov. 4, KKR repurchased 6.2 million shares for $567 million at an average price of $92 per share.

On Nov. 6, the company authorized an additional $500 million for share repurchases.

KKR also declared a quarterly dividend of 19.5 cents per common share.

USI Sale Could Add $2 Billion to Fourth-Quarter Earnings

KKR expects to complete the sale of USI Insurance Services, its first core private equity investment, in the fourth quarter.

Subject to the transaction closing, KKR expects to generate approximately $2 billion in adjusted net income, or more than $2 per adjusted share, in the fourth quarter.

KKR Price Action: KKR shares were up 1.80% at $98.28 at the time of publication on Monday, according to market data.