Kim Kardashian, of “The Kardashians” sister fame, is launching a private equity fund in partnership with Jay Sammons. The fund, labeled SKKY Partners, will focus its investments on consumer products, hospitality, luxury, digital commerce, and media, as well as consumer-media and entertainment businesses, a WSJ report stated. SKKY will have both majority and minority stakes in the business.
Kardashian is gradually expanding her business empire. Her mother, Kris Jenner, who is also her manager, will be a partner in the SKKY fund. Kardashian first launched an undergarment and apparel business labeled Skims in 2019. This year, she launched a skin-care line, SKKN BY KIM, which has nine products, and SKKY will be her third business line.
Sammons, an ex-partner of the famed alternative asset management company, Carlyle Group (NASDAQ:CG) was a pro at consumer investing. He left Carlyle Group in July 2022, after 16 long years, with the intention of continuing to invest in similar industries.
Sammons will bring his extensive business experience to the fund and will oversee its day-to-day operations in two locations: Boston, his hometown, and Los Angeles, where Kardashian resides. Meanwhile, Kardashian, who is popular across the globe and commands a huge fan following, will help in expanding the business.
This new private equity fund is Sammons’ brainchild. Sammons has known the Kardashians for many years and mentioned this idea earlier this year. Kardashian was drawn to the idea because it involved helping entrepreneurs grow their businesses by sharing her expertise.
“The exciting part is to sit down with these founders and figure out what their dream is… I want to support what that is, not change who they are in their DNA, but just support and get them to a different level,” she said in an interview.
Notably, the SKKY fund will start fundraising from institutional investors soon, and the partners expect to make at least one investment through the fund before the end of this year. Details of the expected size of the fund are undisclosed.
How is the Private Equity Sector Faring in 2022?
The U.S. private equity sector witnessed a boom in 2021, with around $340 billion generated in buyout deals, as per a Pitchbook report. Similarly, in the first half of 2022, U.S. private equity firms generated $176 billion in buyout deals.
The second half of the year is expected to continue the momentum in deal-making, and the report expects a total fund value generation of nearly $340 billion across 577 funds. We used the TipRanks Stock Comparison Tool to generate a list of the largest publicly traded private equity funds in the U.S.
From the above chart, it is worth noting that all the indicators for KKR & Co. (NYSE:KKR) are the strongest among the four private equity players.