Kim Kardashian’s foray into private equity has hit a roadblock. Her firm, SKKY Partners, which she co-founded in 2022 with Jay Sammons, a former executive at Carlyle Group, has been struggling to meet its fundraising goals. The company had aimed to raise $1 billion to invest in consumer-driven businesses, but as of March 2024, it had only secured $121 million in capital commitments.
This shortfall has led to significant changes within the company. Kim Kardashian has been demoted from her role as managing partner to senior operating advisor, while her mother, Kris Jenner, has been removed from the company altogether. The difficulties faced by SKKY Partners highlight the challenges that even high-profile individuals like Kim Kardashian face when venturing into specialized financial sectors like private equity.
Despite its struggles, SKKY Partners has had some success, including a minority stake in Truff, a truffle-infused hot sauce manufacturer valued at $250 million. However, the company’s inability to secure further investments has raised concerns about its strategy and execution.
Kim Kardashian’s demotion is seen as a mutual decision, with both parties acknowledging that her initial role did not align with her strengths. While her celebrity status and business acumen are valuable assets, they have not translated to success in private equity fundraising. The company’s sources suggest that Kardashian’s hectic schedule and other commitments made it difficult for her to fully engage in the demanding requirements of private equity fundraising.
The repercussions of SKKY Partners’ struggles are significant. The company must reassess its operational focus and fundraising tactics, potentially seeking partners with more experience in private equity fundraising or exploring alternative investment strategies that better align with the leadership team’s capabilities.
Despite her setback in private equity, Kim Kardashian remains focused on her other business ventures. Her shapewear brand, SKIMS, continues to thrive, with a valuation of $4 billion. She is also 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 bar exam in California have been delayed until 2026.
