US-based alternative asset manager Ares Management is in discussions over a potential minority investment in three-time Indian Premier League champions Kolkata Knight Riders, with the Jay Mehta-led Mehta Group exploring the sale of around 20% of the franchise at a targeted valuation above US$1.8 billion, according to a report by Moneycontrol.
No agreement has been reached and negotiations remain ongoing, with the proposed stake size, valuation and other transaction terms still subject to change. Nomura has been mandated as the sell-side adviser for the process, which could also attract additional prospective investors if discussions progress further.
Mehta Group explores partial KKR exit
KKR is owned through Knight Riders Sports Private Ltd, the joint venture established in 2008 between Shah Rukh Khan’s Red Chillies Entertainment and the Mehta Group, which is associated with industrialist Jay Mehta and actress Juhi Chawla. Red Chillies Entertainment is understood to own 55% of the company, with the Mehta Group holding the remaining 45%.
The original ownership group acquired the IPL franchise for approximately US$75 million when the league’s teams were auctioned ahead of its inaugural season in 2008. Nearly two decades later, the potential transaction would involve only part of the Mehta Group’s existing interest rather than a broader change of control at KKR.
A first person familiar with the matter told Moneycontrol: “The RCB and RR deals were majority stake sales. But in the case of KKR, it’s only one of the co-owners, Jay Mehta- led Mehta group, which plans to offload a minority stake and unlock value. Discussions have been held with Ares Management in this regard but no final call has been taken as yet.”
The Mehta Group is exploring a sale of around 20% while seeking a premium valuation above US$1.8 billion for KKR. A second person familiar with the matter told Moneycontrol: “It will be interesting to see at what valuation the proposed deal settles.”
There is no certainty that the negotiations will lead to a completed transaction, while other potential buyers could emerge if required as the process develops.
Ares brings major global sports investment portfolio
A potential investment would bring another major institutional investor into the IPL ownership ecosystem. Ares Management operates across credit, real estate, infrastructure, private equity and secondaries, with approximately US$671 billion in assets under management across 60 global offices.
Its Sports, Media and Entertainment strategy makes debt and equity investments across teams, leagues and businesses spanning the sports, media and entertainment industries. Its sports portfolio has included investments connected to Chelsea FC, Atlético de Madrid, Inter Miami CF and the Miami Dolphins, while the firm exited its minority investment in McLaren Racing last year.
Ares had also considered opportunities around other IPL franchises that entered the market. A third person familiar with the matter told Moneycontrol: “Internationally, they have a diversified sports portfolio and they had explored opportunities and partnerships earlier when RCB and RR were in the market.”
Ares Management declined to comment on the discussions, while KKR and Jay Mehta had not responded to Moneycontrol’s queries at the time of publication.
KKR valuation target follows record IPL transactions
The discussions come after two major IPL ownership transactions established new valuation benchmarks for franchises in 2026.
Royal Challengers Bengaluru was acquired for US$1.78 billion by a consortium led by the Aditya Birla Group alongside The Times of India Group, Bolt Ventures and Blackstone, as previously reported by cricexec. Rajasthan Royals subsequently reached a US$1.65 billion agreement with the Mittal family and Serum Institute Chief Executive Officer Adar Poonawalla, as reported previously by cricexec.
Unlike those transactions, the KKR process concerns a minority portion of one co-owner’s holding rather than a majority or controlling acquisition. The reported valuation being sought nevertheless places the potential deal against a backdrop of sharply rising prices for IPL ownership interests.
The league’s wider commercial trajectory has continued alongside that transaction activity. The IPL reached an enterprise value of US$20.6 billion in 2026, up 11.4% year-on-year, while its standalone brand value increased 10.3% to US$4.3 billion, according to the Houlihan Lokey 2026 IPL Brand Valuation Study, as previously covered by cricexec in July.
KKR was valued as the IPL’s third-most valuable franchise brand in that study at US$245 million, an increase of 7.9% from the previous year.
Knight Riders franchise has built a global cricket portfolio
KKR has won three IPL championships, taking the title in 2012, 2014 and 2024, and plays its home matches at Eden Gardens in Kolkata. The franchise finished seventh in the 2026 IPL season with 13 points.
Knight Riders has also expanded beyond India through a multi-market franchise portfolio encompassing Trinbago Knight Riders in the Caribbean Premier League, Abu Dhabi Knight Riders in the UAE’s ILT20 and Los Angeles Knight Riders in Major League Cricket.
That international footprint could expand further. Knight Riders Group has also expressed interest in investing in a new Hundred franchise should the England and Wales competition expand from eight teams to ten.
For now, however, the prospective KKR transaction remains at the discussion stage, with Ares Management among the parties to have explored an investment and no final decision yet reached on whether the Mehta Group’s proposed minority stake sale will proceed.
