KKR agrees to buy sports and secondaries investor Arctos in $1 billion deal

The transaction marks KKR’s strategic expansion into sports investing, creating one of the most comprehensive sports investment platforms in private equity, spanning team ownership stakes across multiple professional leagues and secondary market opportunities.

The acquisition follows weeks of negotiations first reported by SGIE on Dec. 8, 2025, when sources indicated KKR was exploring the purchase. At that time, Arctos was managing approximately $14.1 billion (€13.5bn) in assets with minority stakes across major US sports leagues including the NBA, NFL, MLB and NHL, as well as European football and Formula 1. Current reports indicate Arctos manages approximately $15 billion (€14.4bn) in total assets under management.

KKR´s strategic expansion in sports ownership

Arctos Partners has established itself as a pioneering investor in professional sports franchises across multiple leagues, holding minority stakes in teams including the Golden State Warriors (NBA), Los Angeles Dodgers (MLB), Liverpool FC (via Fenway Sports Group), Paris Saint-Germain (football), and the Aston Martin Formula 1 team.

The acquisition provides KKR with immediate access to Arctos’s established relationships with sports leagues and team owners, a critical advantage given the strict approval processes required for ownership stakes in major professional sports organizations.

Doc O’Connor, Ian Charles, and David Abrams, the three managing partners who founded Arctos in 2019, will join KKR and continue leading the sports investment platform. According to Private Equity Wire, the founders will retain a “significant” economic stake in the business post-acquisition through carried interest and KKR shares, ensuring continuity in relationships and strategy.

The Arctos acquisition represents KKR’s most significant move into direct sports team ownership, building on the firm’s existing sports-related investments. KKR has previously invested in sports-adjacent businesses, including its 2024 acquisition of Varsity Brands, a leading supplier of cheerleading and team sports products.

This strategy addresses the evolving economics of professional sports, where franchise valuations have surged alongside expanded media rights deals and international market growth. Sports franchises have increasingly attracted institutional capital as alternative investments offering portfolio diversification and inflation protection.

Secondary market expansion

Beyond team ownership, Arctos has built substantial operations in secondary markets for private equity fund stakes. This secondaries business allows limited partners in private equity funds to sell their positions before funds fully liquidate, providing liquidity in an otherwise illiquid asset class. The secondaries market has grown significantly as institutional investors seek to rebalance portfolios and manage cash flow requirements. KKR’s existing secondaries capabilities, combined with Arctos’s specialized expertise, could create competitive advantages in deal sourcing and execution.

Regulatory and league approval required

While financial terms have been agreed, the transaction remains subject to approval from various professional sports leagues where Arctos holds ownership stakes. League approval processes typically involve background checks, financial reviews, and votes by existing team owners.

The NBA, MLB, NFL, NHL, and European football leagues maintain strict ownership requirements designed to protect league integrity and ensure owners possess sufficient financial resources. KKR’s established reputation and substantial capital base should facilitate approvals, though the timeline remains uncertain.