KKR & Co. Inc. said Thursday it has agreed to acquire Arctos Partners in a transaction valued at $1.4 billion in initial consideration, in a deal that will give the private equity firm a $15 billion sports-investing platform.

KKR was advised by Simpson Thacher & Bartlett LLP as legal counsel, and Kirkland & Ellis LLP as sports counsel. Arctos was also advised by Kirkland & Ellis as legal counsel.

The $1.4 billion consideration consists of $300 million in cash, $900 million of equity issued to existing Arctos shareholders, and $200 million of additional equity to be allocated by 2028, with portions of the equity subject to vesting through 2033, the companies said in a statement.

The deal also includes up to $550 million in additional future equity tied to KKR's share price and business performance targets, the companies said.

Founded in 2019, Dallas-based Arctos is the largest institutional investor in professional sports franchise stakes and manages about $15 billion in assets, and also provides capital solutions to alternative asset managers.

KKR co-CEOs Joe Bae and Scott Nuttall said in a statement that Arctos has "created a distinctive and scaled platform across sports investing and capital solutions for asset managers, and the team has extensive experience in secondaries, three areas where we see significant long-term opportunity."

Arctos managing partners Ian Charles and Doc O'Connor said the tie-up would give the firm greater access to resources and distribution, calling KKR is a "preeminent global investment firm ... ideally positioned to help us achieve the vision we have for Arctos."

Following the closing, Charles and O'Connor will join KKR as partners, and Arctos' full team will become part of the firm.

The transaction is subject to regulatory approvals, certain sports league approvals, and other customary closing conditions.

The Kirkland team advising Arctos is led by partners Jonathan Benloulou, Michael Considine, Adam Garmezy, and Victor Ghazal.

The Kirkland team advising KKR is led by partners Frank Saviano, Jason Krochak, and Adam Rosenthal.

The Simpson Thacher team advising KKR is led by partners Matt Rogers and Johanna Mayer.