UPDATE 4-Blackstone profit triples, stock pares gains

(Adds analyst's quote, background, KKR)

By Michael Flaherty and Jeffrey Goldfarb

NEW YORK/LONDON, Aug 13 (Reuters) - Private equity firm Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz) said on Monday second-quarter net income more than tripled on fees and profits from its leveraged buyouts.

The results initially led to an 8 percent rise in Blackstone's shares, but the stock pared gains after a broad stock market sell-off and a warning from rival Kohlberg Kravis Roberts & Co.

Blackstone shares -- technically called units because of its partnership structure -- closed up 1.7 percent at $25.71. The private equity firm debuted on the New York Stock Exchange in June at $31 per share.

Blackstone said net income climbed to $774.4 million from $224.1 million a year earlier in its first quarterly earnings report as a public company. Excluding amortization, goodwill and other noncash charges, earnings rose to 46 cents a unit from 11 cents.

Analysts on average had expected 40 cents, according to Reuters Estimates. Revenue also tripled to $975.3 million, but missed Wall Street expectations of $991.54 million.

Blackstone's results come amidst worries about the private equity industry, which has been paralyzed by problems in the credit markets.

But the favorable U.S. economic environment in the first half of the year and the firm's broad range of businesses -- from hedge fund investing to asset management to corporate advisory -- allowed it to report a quarterly performance that initially pleased investors.