Kim Kardashian, the reality TV star and entrepreneur, has faced a setback in her private equity firm, SKKY Partners. The company, which she co-founded in 2022 with Jay Sammons, a former executive at Carlyle Group, aimed to raise $1 billion to invest in consumer-driven businesses. However, recent events have revealed that SKKY Partners has struggled to meet its fundraising goals, leading to Kardashian’s sudden removal as managing partner.
Kardashian’s mother, Kris Jenner, has also been removed from the company, where she held the position of senior advisor. The difficulties faced by SKKY Partners have raised questions about the challenges of fundraising in the private equity sector, particularly for celebrity-backed ventures.
Despite initial enthusiasm, SKKY Partners has struggled to secure investments, with only $121 million in capital commitments as of March 2024. This shortfall has been attributed to various factors, including a decline in interest from investors in consumer-focused private equity. The company’s sole notable investment to date is a minority stake in Truff, a truffle-infused hot sauce manufacturer valued at approximately $250 million.
Kardashian’s demotion from managing partner to senior operating advisor has been reportedly mutual, with both parties acknowledging that her initial role did not align with her strengths. Despite her business acumen and celebrity status, Kardashian faced challenges in private equity fundraising, particularly in deal structuring and securing capital.
The repercussions of SKKY Partners’ struggles serve as a reminder that celebrity influence alone is not enough to guarantee success in specialized financial sectors like private equity. The company must now reassess its operational focus and fundraising strategies, potentially seeking partners with more extensive experience in private equity fundraising or exploring alternative investment approaches.
Meanwhile, Kardashian continues to focus on her other business ventures, including her shapewear brand, SKIMS, valued at $4 billion. She has also been promoting her beauty line, SKKN, and has hinted at launching a new cosmetics line. Additionally, Kardashian has expressed interest in pursuing a career in law, although her plans to take the California bar exam have been delayed until 2026.
