US private capital giant KKR is reportedly in advanced discussions to acquire a majority stake in Arctos Partners, a private equity firm specialising in minority investments in professional sports teams, according to a report by the Financial Times.
The reports cites unnamed sources familiar with the matter as highlighting that Arctos, founded in 2019 by David O’Connor and Ian Charles, manages over $14bn in regulatory assets and has been at the forefront of private equity’s expansion into sports, holding stakes in globally recognised teams such as Liverpool FC, Paris Saint-Germain, the Golden State Warriors, Los Angeles Dodgers, Utah Jazz, and NFL franchises including the Los Angeles Chargers and Buffalo Bills. It is also a minority investor in Aston Martin’s Formula 1 team.
The firm has additionally built a platform providing bespoke debt and equity financing to private capital managers, including facilitating the management buyout of private credit firm Hayfin earlier this year.
KKR, which manages more than $700bn in assets, is increasingly seeking growth avenues that appeal to both high-net-worth and retail investors. Sports-related investments, with their broad fan engagement and potential for secondary market transactions, fit this strategy. Arctos also brings expertise in the burgeoning market for secondary private equity fund stakes, an area KKR has shown growing interest in.
The acquisition would mark another step in KKR’s diversification beyond traditional buyouts and credit, following high-profile expansions such as its 2023 full acquisition of insurer Global Atlantic for over $7bn. Any deal for Arctos would likely require league approvals for the firm’s portfolio teams and could rank among KKR’s largest private equity purchases to date.
Sources noted that other private capital firms had also expressed interest in Arctos, and while talks with KKR are advanced, the transaction is not yet final.
