KKR & Co. Inc. (NYSE:KKR) entered into a definitive agreement to acquire Arctos Partners LP for $1.8 billion on February 4, 2026. KKR has agreed to pay $1.4 billion in initial consideration for the seller?s equity interests in Arctos, consisting of cash and equity securities of KKR. The equity component of this initial consideration includes (i) $900 million of equity securities paid to existing Arctos shareholders including Arctos management, with management?s equity securities subject to vesting through 2030, and (ii) $200 million of additional equity securities to be allocated by 2028 and subject to vesting through 2033. The initial consideration for the acquisition also includes $300 million of cash, subject to contractual purchase price adjustments and other adjustments. In addition, equity of up to $550 million tied to both KKR share price and business-specific performance targets and subject to vesting through 2031 may be earned. Certain of the equity securities in the initial consideration and the potential additional equity will be unregistered securities issuable pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The unregistered securities include $920 million of the $1.1 billion initial equity consideration comprised of the following : (i) 1.504 million shares of KKR Common Stock and (ii) 5.540 million of restricted holdings units that once vested are exchangeable for shares of KKR Common Stock on a one-for-one basis (?KKR Restricted Units?). In addition, $415 million of the $550 million potential additional securities that are subject to KKR share price and business-specific performance targets will be unregistered KKR Restricted Units . The remaining equity components of the initial consideration and potential additional equity are expected to be registered and issued under the Company?s equity incentive plan.

Upon closing, Arctos? Managing Partners Charles and O?Connor will join KKR as Partners, and Arctos? full team and operations will become part of KKR. KKR will form a new investing business, KKR Solutions, which will be led by Charles. KKR Solutions will include Arctos? Sports and Keystone businesses and serve as the home of a scaled multi-asset class secondaries business KKR will build over time. The transaction is expected to be accretive per share across key financial metrics immediately post-closing.

The transaction is subject to regulatory and specified sports league approvals, as well as customary closing conditions.

Matt Rogers, Joey Mayer, Eric Swedenburg, Gillian Moldowan, Laura Gallo, Ken Wallach, Sunny Cheong, Jess Asrat, Marcy Geller, Drew Purcell, Ed Grais, Kathryn Stone, Jordan Cross, Albi Kocibelli, Charles Mathes, David Blass, Meredith Abrams, Nic Ridley, Laura Wallace, Peter Guryan, Étienne Renaudeau, Kelly Karapetyan, James Goldfeier, Mick Tuesley, Claire DiMario, George Gerstein, Lori Lesser, Krista McManus and Steve DeLott of Simpson Thacher & Bartlett LLP acted as legal advisor for KKR & Co. Inc. The team of Kirkland & Ellis LLP led by Jonathan Benloulou, Michael Considine, Adam Garmezy, Victor Ghazal, Peter Vaglio, Jack Rossman, Don Rocap, Elie Zolty, Joe Tobias, John Berger, Patrick Valenti, Sam Scarcello, Frank Saviano, Jason Krochak and Adam Rosenthal acted as legal advisor for Arctos Partners LP and sports consel for KKR & Co. Inc. BofA Securities acted as financial advisor for Arctos Partners LP.

KKR & Co. Inc. (NYSE:KKR) completed the acquisition of Arctos Partners LP on May 5, 2026.