Kim Kardashian’s debut non-public fairness fund goals to lift not less than $1 billion as buyout corporations grapple with one of many hardest fundraising environments in years.
The agency, SKKY Companions, has a singular asset to raise its profile because it tries to lift that money — the thousands and thousands of followers and followers who watch Kardashian’s each transfer on social media.
In a fundraising pitch seen by Bloomberg, SKKY flags Kardashian’s social attain as one of many causes it “will win.” The 42-year-old actuality TV star and entrepreneur has 432 million followers on Instagram, Twitter and TikTok in addition to a “demonstrated means to establish and outline tradition,” the pitch says.
SKKY Companions, co-founded by Kardashian and former Carlyle Group Inc. government Jay Sammons, is concentrating on 10-12 investments associated to shopper and media, requiring wherever from $100 million to $500 million of fairness every, in line with an investor presentation seen by Bloomberg. The agency is asking for a minimal $10 million dedication from restricted companions, with paperwork exhibiting an anticipated return of 8% compounded yearly.
SKKY hasn’t set an in depth date for the launch, and it might change the goal, in line with individuals conversant in the matter, who requested to not be recognized discussing non-public fundraising plans.
The fund’s debut comes throughout a difficult time for elevating money resulting from rising rates of interest, recession predictions and a pullback in non-public fairness investing from pensions and endowments. Even buyout giants reminiscent of Apollo World Administration Inc. and Carlyle have acknowledged that fundraising has gone extra slowly than anticipated.
Cultural Relevance
Boston-based SKKY goals to capitalize on Kardashian’s fame, which helped rework her from a actuality TV star to a cultural icon and entrepreneur whose shapewear firm, Skims, was valued at $3.2 billion final yr. Kardashian is an “integral determine” in utilizing social media to achieve customers, in line with the presentation.
To show its “cultural relevance credentials,” SKKY intends to faucet right into a community of actors, musicians, artists and athletes. The agency additionally plans to scrape social media to glean customers’ attitudes about manufacturers.
SKKY lately added a spate of execs from throughout Wall Road, anticipating to carry the present workforce of a couple of dozen individuals to past 15 by the top of the yr.
