Kim Kardashian (PC: YouTube)
Kim Kardashian’s foray into the world of private equity hasn’t been quite as smooth sailing as some might have expected. While SKKY Partners, the firm she co-founded with private equity veteran Jay Sammons, initially aimed to raise a hefty $1 billion, recent federal filings reveal they’ve only secured a fraction of that target.
Kim Kardashian’s private equity firm faces funding challenges
Kim Kardashian’s private equity firm, SKKY Partners, had ambitious plans to raise $1 billion in funding, but as of March 2023, it has raised only a fraction of that goal. Securities filings indicate that the firm has secured just $121 million in capital commitments.
This modest amount includes nearly $80 million structured as a special purpose vehicle for a minority investment in Truff, a maker of truffle-infused hot sauces, valued at around $250 million. While some anonymous sources have suggested that the firm may have raised more than this reported amount, it’s clear that SKKY still has a long way to go to reach its billion-dollar goal.
SKKY Partners has been raising funds through rolling closes without a set end date for the initial funding round. Although Kardashian’s firm has attracted attention due to her celebrity status and her association with successful businesses, the fundraising process hasn’t been as smooth as expected. It’s unclear which companies have invested in SKKY, and there’s no certainty about when the firm will reach its original target.
Kim Kardashian’s approach to private equity
Many anticipated that SKKY Partners would focus on brands promoted by Kardashian, given her extensive influence in the beauty and fashion industries. However, Kardashian has clarified that her role at SKKY will be more traditional, focusing on private equity advising rather than serving as a brand ambassador, according to Axios.
Her stake in SKKY is held partially through a vehicle called Favorite Daughter Inc., and she’s assembled a strong team to drive the firm’s success. Investors are waiting for additional capital to see what direction SKKY will take with its investments.
Kardashian’s dedication to SKKY is evident in her actions. Around the time of SKKY’s launch, she hired former Apple retail chief Angela Ahrendts as a senior operating advisor. Ahrendts is tasked with overseeing investments in consumer products, e-commerce, media, and entertainment.
“As we continue to expand SKKY Partners and focus on identifying strategic investment opportunities for the firm, it was the perfect time to have Angela join us,” Kardashian said in a statement on the hire at the time, after SKKY first launched in late 2022.
Fans have noticed a shift in Kardashian’s demeanor, as she has dyed her hair back to its signature jet-black color and opts for turtlenecks during meetings. These changes have led some to humorously compare her to the “Steve Jobs of finance.” However, Kardashian has made it clear that she intends to be involved in every step of the process.
“I wouldn’t be involved in anything if it wasn’t fully hands-on,” she told Fortune. “There’s no other way.”
While beauty and fashion remain core areas of interest, the firm is also expanding into food, beverage, and hospitality. Kardashian emphasizes the importance of “authenticity” in the brands they choose to support, ensuring they maintain their own identities rather than becoming mere extensions of her personal style.
