California: Kim Kardashian’s debut private equity fund aims to raise at least $1 billion as buyout firms grapple with one of the toughest fundraising environments in years.
The firm, SKKY Partners, has a unique asset to elevate its profile as it tries to raise that cash - the millions of fans and followers who watch Kardashian’s every move on social media.
In a fundraising pitch seen by Bloomberg, SKKY flags Kardashian’s social reach as one of the reasons it “will win.” The 42-year-old reality TV star and entrepreneur has 432 million followers on Instagram, Twitter and TikTok as well as a “demonstrated ability to identify and define culture,” the pitch says.
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SKKY Partners, co-founded by Kardashian and former Carlyle Group executive Jay Sammons, is targeting 10-12 investments related to consumer and media, requiring anywhere from $100 million to $500 million of equity each, according to an investor presentation seen by Bloomberg. The firm is asking for a minimum $10 million commitment from limited partners, with documents showing a hurdle rate of 8 per cent compounded annually - the minimum return SKKY would have to achieve before earning carried interest.
SKKY hasn’t set a close date for the launch, and it could change the target, 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 cash due to rising interest rates, recession predictions and a pullback in private equity investing from pensions and endowments. Even buyout giants such as Apollo Global Management and Carlyle have acknowledged that fundraising has gone more slowly than expected.
Boston-based SKKY aims to capitalize on Kardashian’s fame, which 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 demonstrate its “cultural relevance credentials,” SKKY intends to tap into a network of actors, musicians, artists and athletes. The firm also plans to scrape social media to glean consumers’ attitudes about brands.
SKKY recently added a spate of professionals from across Wall Street, expecting to bring the current team of about a dozen people to beyond 15 by the end of the year.