\nKKR & Co. Inc., a leading global investment firm, today announced that it has entered into a definitive agreement to acquire Arctos Partners (\u201cArctos\u201d), a premier institutional investor in professional sports franchise stakes and a leader in asset management solutions for sponsors. The transaction is valued at $1.4 billion in initial consideration, including equity subject to vesting through 2033, plus up to an additional $550 million in future equity tied to both KKR share price and business-specific performance targets and vesting through 2031.<\/p>\n
This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20260204778743\/en\/<\/a><\/p>\n \nFounded by Ian Charles and Doc O’Connor in 2019 and headquartered in Dallas, Texas, Arctos is the largest institutional investor in professional sports franchises and a recognized innovator in providing strategic capital to asset management firms through structured solutions. The firm manages approximately $15 billion in Assets Under Management (\u201cAUM\u201d) and provides bespoke growth and liquidity solutions to sports franchises (\u201cArctos Sports\u201d) and alternative asset managers (\u201cArctos Keystone\u201d or \u201cGP Solutions\u201d).<\/p>\n \nCharles and O\u2019Connor, Managing Partners of Arctos, said, \u201cKKR is a preeminent global investment firm and ideally positioned to help us achieve the vision we have for Arctos. We see tremendous opportunity to better serve the sports industry and the sponsor community, but the key to that unlock is a partnership that will provide access to strategic, financial and operational resources to accelerate our existing businesses. At the same time, we will be able to leverage KKR\u2019s broad range of products and capabilities to extend and enhance our relationships with leagues, teams, GPs and sponsors. Through this transaction, we will become an even stronger partner to the markets and investors that we serve, which has been our goal from the very beginning.\u201d<\/p>\n \nJoe Bae and Scott Nuttall, Co-Chief Executive Officers of KKR, said, \u201cArctos has created a distinctive and scaled platform across sports investing and capital solutions for asset managers, and the team has extensive experience in secondaries\u2014three areas where we see significant long-term opportunity. The team has complementary strengths, strong cultural alignment, and an entrepreneurial approach that fits well with KKR. We look forward to working together to build a platform that expands opportunities across the entire KKR ecosystem.\u201d<\/p>\n Strategic Rationale \nUpon closing, Arctos\u2019 Managing Partners Charles and O\u2019Connor will join KKR as Partners, and Arctos\u2019 full team and operations will become part of KKR. KKR will form a new investing business, KKR Solutions, which will be led by Charles. KKR Solutions will include Arctos\u2019 Sports and Keystone businesses and serve as the home of a scaled multi-asset class secondaries business KKR will build over time.<\/p>\n \n\u201cIan Charles is one of the most experienced leaders in the secondaries space.\u201d Bae and Nuttall added. \u201cWe have known Ian for more than a decade and have worked closely with him, including on KKR\u2019s first structured secondaries transaction\u2014a milestone that ultimately laid the foundation for our Health Care and Technology Growth platforms, which today manage over $17 billion of capital. With the team\u2019s track record and history of innovation, we know Arctos is the right partner to help us build a leading franchise across sports, GP solutions and secondaries.\u201d<\/p>\n Terms of the Transaction & Additional Details<\/span><\/b><\/p>\n \nKKR has agreed to acquire 100% of Arctos in a strategic transaction valued at $1.4 billion in initial consideration, including equity subject to vesting through 2033, plus up to an additional $550 million in future equity tied to both KKR share price and business-specific performance targets and vesting through 2031.<\/p>\n \nInitial consideration of $1.4 billion consists of $300 million in cash, $900 million of equity to existing Arctos shareholders (with Arctos management\u2019s portion subject to vesting through 2030), and $200 million of additional equity to be allocated by 2028 and subject to vesting through 2033.<\/p>\n \nThe transaction is expected to be accretive per share across key financial metrics immediately post-closing.<\/p>\n \nThe transaction is subject to regulatory and specified sports league approvals, as well as customary closing conditions.<\/p>\n \nKKR was advised by Simpson Thacher, as legal counsel, and Kirkland & Ellis as sports counsel. Arctos was advised by Kirkland & Ellis as legal counsel. BofA Securities acted as exclusive financial advisor for Arctos.<\/p>\n \nKKR has filed an 8-K and posted an accompanying presentation on its website for KKR common stockholders and analysts entitled \u201cKKR & Co. Inc. Acquisition of Arctos\u201d. The presentation is accessible at the Investor Center for KKR & Co. Inc. at https:\/\/ir.kkr.com\/events<\/a>–<\/a>presentations\/<\/a>.<\/a><\/p>\n About KKR About Arctos \nForward Looking Statements<\/p>\n \nThis press release contains certain forward-looking statements pertaining to KKR, including with respect to the investment funds, and vehicles and accounts managed by KKR, Global Atlantic insurance companies, and Arctos. Forward-looking statements relate to expectations, estimates, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, including with respect to KKR\u2019s proposed acquisition of Arctos and the acquisition\u2019s effect on our business. You can identify these forward-looking statements by the use of words such as \u201copportunity,\u201d \u201coutlook,\u201d \u201cbelieve,\u201d \u201cthink,\u201d \u201cexpect,\u201d \u201cfeel,\u201d \u201cpotential,\u201d \u201ccontinue,\u201d \u201cmay,\u201d \u201cshould,\u201d \u201cseek,\u201d \u201capproximately,\u201d \u201cpredict,\u201d \u201cintend,\u201d \u201cwill,\u201d \u201cplan,\u201d \u201cestimate,\u201d \u201canticipate,\u201d \u201cvisibility,\u201d \u201cpositioned,\u201d \u201cpath to,\u201d \u201cconviction,\u201d \u201cenables,\u201d the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. These forward-looking statements are based on KKR\u2019s beliefs, assumptions and expectations, but these beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or within its control. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Past performance is no guarantee of future results. All forward-looking statements speak only as of the date of this presentation. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date of this presentation except as required by law. Please see the Appendix of the accompanying presentation entitled \u201cKKR & Co. Inc. Acquisition of Arctos\u201d and available at the Investor Center for KKR & Co. Inc. at https:\/\/ir.kkr.com\/events<\/a>–<\/a>presentations\/<\/a> for additional important information about forward-looking statements, including the assumptions and risks concerning projections and estimates of future performance. Information about factors affecting KKR, including a description of risks that should be considered when making a decision to purchase or sell any securities of KKR, can be found in KKR & Co. Inc.\u2019s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 28, 2025, and its other filings with the SEC, which are available at www.sec.gov<\/a>.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260204778743\/en\/<\/a><\/span><\/p>\n Investors KKR Media Arctos Media KEYWORDS:<\/b> United States North America New York<\/p>\n INDUSTRY KEYWORDS:<\/b> Finance Sports Licensing (Sports) Professional Services General Sports<\/p>\n
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<\/b>The acquisition advances KKR\u2019s strategy to scale its platform by building and acquiring complementary businesses in large addressable markets where KKR has the ability to be a leader. Bringing Arctos into KKR will provide access to capital and capabilities that will fuel the growth of Arctos\u2019 existing businesses while also deepening KKR\u2019s sourcing and origination capabilities and expanding its long-duration capital base.<\/p>\n\n
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<\/b>KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR\u2019s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR\u2019s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR\u2019s website at www.kkr.com<\/a>. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group\u2019s website at www.globalatlantic.com<\/a>.<\/p>\n
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<\/b>Arctos is a private investment firm designed to catalyze growth and unlock value in complex, illiquid, and underserved markets. Founded in 2019, the firm\u2019s investment businesses span private equity and real assets (Arctos Keystone) and premier sports franchises (Arctos Sports), delivering bespoke capital solutions, differentiated insights, and purpose-built operating capabilities to industry leaders in both markets. The firm\u2019s innovative approach is anchored by its unique quantitative research and data science platform, Arctos Insights. Arctos has a team of more than 75 investment and operational professionals with expertise across industries, geographies, and economic cycles. The firm is headquartered in Dallas, with office locations in New York, Boston, and London. For more information, visit www.arctospartners.com<\/a> or Arctos\u2019 company page on LinkedIn.<\/p>\n<\/p>\n
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Craig Larson
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1-877-610-4910 (U.S.) \/ 212-230-9410
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investor-relations@kkr.com
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Kristi Huller
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212-750-8300
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media@kkr.com
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Prosek Partners
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Pro-Arctos@Prosek.com<\/a><\/p>\n
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