Simpson Thacher is representing KKR in connection with its acquisition of Arctos, a leading global investment firm, in a strategic transaction. Under the terms of the agreement, KKR will acquire Arctos for $1.4 billion in cash and equity consideration, plus up to an additional $550 million future equity awards tied to both KKR share price and business-specific performance targets. The transaction is subject to regulatory and specified sports league approvals, as well as customary closing conditions.
Founded by Ian Charles and Doc O’Connor in 2019 and headquartered in Dallas, Texas, Arctos is the largest institutional investor in professional sports franchises and a recognized innovator in providing strategic capital to asset management firms through structured solutions. Arctos manages approximately $15 billion in assets under management and provides bespoke growth and liquidity solutions to sports franchises (“Arctos Sports”) and alternative asset managers (“Arctos Keystone”). 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 Arctos Keystone businesses and serve as the home of a scaled multi-asset class secondaries business KKR will build over time.
The Simpson Thacher team includes Matt Rogers, Joey Mayer, Eric Swedenburg, Irina Nica, Steve Lyberopoulos, Ellen Gao, Tris Cox and Sebastian Edin (M&A); Gillian Moldowan, Laura Gallo and Nicolas Deguines (Executive Compensation & Employee Benefits); Ken Wallach, Sunny Cheong, Jess Asrat and Jessica Ryan (Capital Markets); Marcy Geller, Drew Purcell, Ed Grais, Kathryn Stone and Roberto Arza (Tax); Jordan Cross, Albi Kocibelli, Sean Park, Jake Kim and Tom Fu (Funds); Charles Mathes (Public Company Advisory Practice); David Blass, Meredith Abrams, Nic Ridley, Blake Delaplane and John Rupp (Funds Regulatory – U.S.); Laura Wallace and Seji Choi (Funds Regulatory – U.K.); Peter Guryan, Étienne Renaudeau, Kelly Karapetyan, James Goldfeier, Max Fischer-Zernin and Luke Cowdell (Antitrust); Mick Tuesley, Claire DiMario, Thomas Lopez and Ryan Thomas (FDI); George Gerstein and Xinyi Mao (ERISA); Lori Lesser and Tally Smitas (Intellectual Property); Krista McManus (Real Estate); Claire Cahoon and Olenka Burghardt (Regulatory); and Steve DeLott (Insurance).