KKR (KKR) M&A Announcement Presentation summary

Strategic rationale and transaction overview

• Acquisition of 100% of Arctos for $1.4 billion in initial consideration, with additional future equity up to $550 million tied to KKR share price and business performance targets, subject to vesting through 2031.

• Initial consideration includes $900 million in equity to Arctos shareholders (management's portion vests through 2030), $200 million additional equity to be allocated by 2028 (vesting through 2033), and $300 million in cash.

• Transaction aligns with a strategy to expand into large, growing markets in sports, GP solutions, and secondaries, leveraging Arctos' expertise and KKR's platform.

• Arctos management will join KKR, with Ian Charles leading the new KKR Solutions business.

• Transaction expected to be immediately accretive per share across key financial metrics post-closing.

Arctos business highlights and market position

• Arctos is the largest institutional investor in professional sports franchise stakes, with a $15 billion AUM and a first-mover advantage in multi-franchise ownership across major North American leagues.

• Operates in both sports franchise investments and GP solutions, providing strategic growth capital and liquidity to premier sports franchises and leading fund sponsors.

• Inaugural Keystone (GP Solutions) fund is already a top 5 GP solutions fund by size.

• Team of 76 employees across four offices in Dallas, NYC, Boston, and London.

• Deep expertise in sports, GP solutions, and secondaries, with a proven track record of innovation and business building.

Growth opportunities and integration with KKR

• Multiple growth avenues identified across sports, GP solutions, and secondaries, with synergies expected from integration with KKR’s private equity, credit, and real assets businesses.

• KKR Solutions will leverage Arctos’ data-driven approach to scale a diversified solutions business, including management company financing, GP stakes, fund finance, and both GP- and LP-led secondaries.

• Expanded origination and sourcing capabilities across KKR’s ecosystem, including insurance, credit, private equity, real assets, and capital markets.

• KKR Solutions is expected to become a $100+ billion AUM business over time, reported as part of KKR’s existing business lines.

• Performance-based, deferred consideration aligns Arctos management and employees with KKR’s long-term vision.