Kim Kardashian’s debut private equity fund aims to raise at least $1 billion as buyout firms battle one of the toughest fundraising environments in years.
The firm, SKKY Partners, has a unique asset to raise its profile as it tries to raise money — the millions of fans and followers watching Kardashian’s every move on social media.
In a fundraising pitch seen by Bloomberg, SKKY flagged Kardashian’s social reach as one of the reasons it could “win.” The 42-year-old reality TV star and entrepreneur has 432 million followers Instagram, Twitter and TikTok as well as a “demonstrated ability to identify and define culture,” the pitch said.
SKKY Partners, co-founded by Kardashian and former Carlyle’s group Inc. executive Jay Sammons, is targeting 10-12 consumer and media-related investments, requiring anywhere from $100 million to $500 million in equity each, according to an investor presentation seen by Bloomberg. The company is asking for a minimum $10 million commitment from limited partners, with documents showing an expected return of 8% compounded annually.
SKKY has not set a close date for the launch, and the target may change, according to people familiar with the matter, who asked not to be identified discussing private fundraising plans.
The fund’s debut comes during a challenging time for raising money due to rising interest rates, recession forecasts and a pullback in private equity investment from pensions and endowments. Even giant buyouts like Apollo Global Management Inc. and Carlyle acknowledged that fundraising was slower than expected.
Boston-based SKKY aims to capitalize on Kardashian’s fame, which has helped transform her from a reality TV star to a cultural icon and entrepreneur whose shapewear company, Skims, was valued at $3.2 billion last year. Kardashian is an “integral figure” in using social media to reach consumers, according to the presentation.
To showcase its “culturally relevant credentials,” SKKY seeks to tap into a network of actors, musicians, artists and athletes. The company also plans to scrape social media to capture consumer attitudes about brands.
SKKY recently added a most of the professionals from across Wall Street, expects to bring the current team of about a dozen people to over 15 by the end of the year.