As buyout firms struggle in one of the most challenging fundraising conditions in recent memory, Kim Kardashian‘s first private equity fund seeks to raise at least $1 billion.
The millions of admirers and followers who follow Kardashian’s every online move provide the company, SKKY Partners, with a special asset that will enhance awareness of the firm as it works to raise that money.
Kim Kardashian Monetizing Her Following
Kardashian’s social following is mentioned by SKKY in a fundraising pitch seen by Bloomberg as one of the reasons it “will win.” The 42-year-old reality television personality and entrepreneur has 432 million followers on Instagram, Twitter, and TikTok in addition to having a “demonstrated ability to identify and define culture,” according to the proposal.
According to an investor presentation viewed by Bloomberg, SKKY Partners, co-founded by Kardashian and former Carlyle Group executive Jay Sammons, is eyeing 10 to 12 investments in the consumer and media sectors and will need anywhere between $100 million and $500 million of money for each. The firm is requesting a minimum $10 million investment from limited partners, and according to the filings, SKKY must reach a hurdle rate of 8% compounded annually before receiving carried interest.
According to a primary source who asked to remain anonymous when discussing private fundraising intentions, SKKY has not set a close date for the launch and it may revise the aim.
The fund’s launch occurs at a time when raising money is difficult due to rising interest rates, forecasts of a recession, and a decrease in private equity investment from pension funds and endowments. Even industry leaders in buyouts like Apollo Global Management and Carlyle have admitted that fundraising has not progressed as quickly as anticipated.
Kim Kardashian’s SKKY
Kardashian’s rise from reality TV star to cultural icon and entrepreneur, with her shapewear firm, Skims, valued at $3.2 billion last year, is helping Boston-based SKKY make money off of her celebrity. According to the presentation, Kardashian is an “integral figure” in using social media to reach consumers.
SKKY plans to reach out to a network of actors, musicians, artists, and sportsmen in order to showcase its “cultural relevance credentials.” The company also intends to trawl social media to see how consumers feel about certain companies.
SKKY has hired a number of Wall Street specialists, with the intention of expanding its existing staff of roughly a dozen individuals to more than 15 by the end of the year.
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