KKR’s $1.4B Acquisition of Arctos Partners: A Decade Long Association

KKR’s Acquisition of Arctos Partners

The $1.4 billion acquisition of Arctos Partners by KKR has roots that go back over a decade. The partnership started before Arctos was even established, showing the longstanding relationship between the two entities.

Foundation of the Arctos-KKR Relationship

“We’ve known Ian Charles, the founder [of Arctos], for over a decade,” Nuttall, a representative from KKR, shared at a conference. KKR initially engaged Charles in 2016 when they needed a secondaries specialist to release capital. Back then, Charles was a part of Landmark Partners, which later got acquired by Ares. This collaboration laid the groundwork for KKR’s healthcare and tech growth platforms, which now boast over $17 billion in management.

Arctos was co-founded by Charles in 2019 and it quickly rose to prominence in the sports investing sector. The firm has private equity stakes in all five major men’s professional sports leagues in the US, including the LA Dodgers, Golden State Warriors, and Buffalo Bills, not to mention international powerhouses like Liverpool FC and Paris Saint-Germain.

The Rise of Sports as an Investment Thesis in Private Equity

Sports franchises have become a highly attractive field for private equity, with a record $23.6 billion in sports franchise acquisitions and $6.3 billion in sports services acquisitions recorded in the first three quarters of 2025, according to S&P Global Market Intelligence Data.

While KKR hasn’t acquired any sports franchises yet, they have invested in businesses related to sports such as cheerleading apparel company Varsity Brands and high school streaming platform PlayOn! Sports. They also previously invested in FanDuel and the UFC.

The Arctos-KKR Deal

The relationship between Arctos and KKR developed organically, according to Nuttall. KKR found Arctos to be the most suitable firm when they decided to diversify into the stake-buying business. Arctos’ dominance in the sports field and their expertise in secondary market deals made them the best fit for KKR.

The decision to partner with Arctos wasn’t just fueled by their successful track record in sports investments but also their ability to tap into opportunities in related sectors such as real estate and media rights securitization.