A major private equity firm bought the leading sports investment firm, the companies announced Thursday. KKR took control of Arctos Partners in a deal valued at $1.4 billion, giving the private equity giant a significant foothold in professional sports.

Arctos holds an extensive portfolio of ownership stakes across every major North American sports league, from the NFL and NBA to MLB, and in the NHL and MLS.

In the NBA, it holds minority stakes in the Golden State Warriors, Philadelphia 76ers, Utah Jazz and several others, including a stake in the Washington Wizards, which it acquired in December. It bought an 8 percent stake in the Los Angeles Chargers last year and also holds shares in the Los Angeles Dodgers and the Chicago Cubs. It also has a percentage of the soccer giant PSG.

KKR, in a statement, said it will benefit from Arctos’ relationships and expertise in the sports market. At the same time, Arctos now has access to more potential capital as it joins a firm with more than $750 billion under management.

Arctos was at the forefront of private equity investment in sports. It launched in 2019, co-founded by Ian Charles and Doc O’Connor, who are still with the company, and quickly gobbled up minority interests. Several other sports-specific investment firms have followed.

Arctos’ growth mirrored the increasing role of private equity in pro sports as more firms took passive minority stakes in teams, and sports themselves became a booming investment sector. That coincided with skyrocketing franchise valuations, especially in the NFL and NBA.

Major private equity firms have since entered the sports industry. The NBA approved them as potential investors in 2020, allowing them to own no more than 20 percent of a team and 30 percent in aggregate. In 2024, the NFL let them in, though capped at 10 percent stakes.