Kim Kardashian’s $1 billion buyout pitch leans on her social media attain

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 capability to establish and outline tradition,” the pitch says.

SKKY Companions, co-founded by Kardashian and former Carlyle Group govt Jay Sammons, is concentrating on 10-12 investments associated to client and media, requiring anyplace from $100 million to $500 million of fairness every, in keeping with an investor presentation seen by Bloomberg. The agency is asking for a minimal $10 million dedication from restricted companions, with paperwork displaying a hurdle charge of 8 per cent compounded yearly – the minimal return SKKY must obtain earlier than incomes carried curiosity.

SKKY hasn’t set a detailed date for the launch, and it may change the goal, in keeping with folks acquainted with 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 because of rising rates of interest, recession predictions and a pullback in non-public fairness investing from pensions and endowments. Even buyout giants reminiscent of Apollo International Administration and Carlyle have acknowledged that fundraising has gone extra slowly than anticipated.

Boston-based SKKY goals to capitalize on Kardashian’s fame, which helped remodel 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 shoppers, in keeping with the presentation.

To reveal 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 shoppers’ attitudes about manufacturers.

SKKY just lately added a spate of execs from throughout Wall Avenue, anticipating to carry the present crew of a few dozen folks to past 15 by the top of the yr.