KKR has agreed to acquire Arctos Partners in a transaction valuing the sports and secondaries investor at about $1bn, according to Bloomberg.

The deal includes performance-based incentives that could lift the valuation to as much as $1.5bn. Arctos’ senior management team, led by co-founder Ian Charles, will remain in place and retain their existing carried interest, while also receiving shares in KKR.

Arctos manages around $15bn in assets and holds minority stakes across major US sports franchises, including teams in the NBA, NFL, MLB, and NHL. The firm was an early mover in institutional sports investing and has also built a sizeable secondaries platform.

KKR will acquire Arctos using its balance sheet, with the business folded into its asset management division. The transaction is subject to approvals from US professional sports leagues, which will review potential conflicts of interest.

The deal highlights private equity’s growing appetite for niche asset classes offering differentiated returns, as large managers look to broaden their investment capabilities beyond traditional buyouts.

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