KKR expects its planned acquisition of sports-focused investment firm Arctos Partners to underpin a new platform that could grow to more than $100bn in assets under management, as the private equity giant expands GP solutions and secondaries strategies, according to a report by Private Equity International.
The firm has agreed to acquire Arctos for an initial $1.4bn, including equity subject to vesting through 2033, plus up to an additional $550m in future equity tied to both KKR share price and business-specific performance targets and vesting through 2031. Following the deal, Arctos will form the basis of a new investing vertical spanning sports investing, GP solutions and future secondaries strategies, KKR Chief Financial Officer Rob Lewin said on the firm’s fourth-quarter 2025 earnings call.
“Over time, we do expect this business to reach $100bn-plus of AUM,” Lewin said, adding that KKR had reviewed most secondary asset managers that have come to market over the past decade before deciding to partner with Arctos.
Founded in 2019, Arctos manages approximately $15bn in assets and is best known for its investments in professional sports franchises, including teams such as PSG. In 2023, the firm broadened its remit with the launch of Arctos Keystone, a GP solutions strategy providing growth capital and liquidity to managers across private equity, credit, real estate and digital infrastructure.
Arctos’ first GP solutions vehicle, Arctos Keystone Partners Fund I, launched with a $4bn target and was approaching a final close last year, according to industry data. Lewin described the strategy as one of the most successful first-time funds in the GP solutions market, positioning Arctos as an emerging large-scale player in the segment.
Alongside GP solutions, Arctos has raised two sports-focused funds and is currently marketing its third flagship vehicle. Its debut fund closed at $2.14bn in 2021, while its second vehicle raised $4.1bn in 2024, significantly exceeding targets in both cases.
Although Arctos has yet to establish a dedicated secondaries fund, KKR believes the firm’s market standing and track record provide a strong foundation to build a new platform in the space. Lewin said KKR was attracted by the opportunity to develop a secondaries strategy “from a blank sheet of paper”.
