Jan 6 (Reuters) – Global investment firm KKR has agreed to acquire Arctos Partners in a deal that values the sports-focused private equity firm at about $1 billion, Bloomberg News reported on Tuesday, citing people familiar with the matter.
Arctos, an investment platform dedicated to professional sports franchises, holds stakes in teams across major U.S. leagues, including the National Basketball Association, Major League Baseball, National Hockey League and Major League Soccer.
The potential deal includes incentives for Arctos’ senior managers, including co-founder Ian Charles, that could lift the valuation closer to $1.5 billion, the report said.
Under the agreement, Charles will remain head of the business and, along with other top Arctos executives, be granted shares of the New York-based buyout giant, the report said.
The companies are seeking approval for the transaction from major U.S. professional sports leagues, according to the report.
League approvals for the deal hinge on specific conditions, including reviews to prevent conflicts of interest involving athletes, such as endorsements for KKR portfolio companies, the report said.
KKR plans to fund the Arctos purchase using its balance sheet, integrating the firm into its asset management operations, according to the report.
KKR declined to comment, while Arctos did not immediately respond to a Reuters request for comment.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
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