In 2022, Kim Kardashian, renowned for her successful business ventures in fashion, pop culture and beauty, co-founded SKKY Partners, a private equity firm, alongside former Carlyle Group executive Jay Sammons. The firm had set an ambitious goal to raise $1 billion to invest in consumer-driven businesses, leveraging Kardashian’s influential brand, name recognition and business acumen.
However, recent developments indicate that SKKY Partners has encountered significant challenges in its fundraising efforts, leading to Kim Kardashian getting unceremoniously dumped from her role as managing partner.
In addition, Kim Kardashian’s mother, Kris Jenner has been removed entirely from the SKKY Partners and is no longer in the company. She was listed in the website as a “senior advisor” prior to the removal.
Fundraising Challenges
Despite the initial optimism surrounding the partnership between Kim Kardashian and SKKY Partners, the firm has struggled to meet its fundraising targets. As of March 2024, SKKY Partners had secured only $121 million in capital commitments, a mere fraction of its $1 billion goal. This shortfall has been attributed to several factors, including a declining interest from other investors in consumer-focused private equity, particularly in a softened fundraising environment caused by high interest rates set by the Federal Reserve
The firm’s limited success so far included a minority investment in Truff, a maker of truffle-infused hot sauces, valued at approximately $250 million. SKKY Partners announced the investment in November 2023.
SKKY said in a press release that the firm’s “primary focus is on identifying culturally relevant brands that forge deep emotional connections with their target consumers and offer those consumers coveted products and services.”
Beyond this initial investment however, SKKY Partners has struggled in getting more investment deals, raising concerns among observers about its strategy and execution in the competitive private equity landscape.
Kim Kardashian’s Demotion
In light of these fundraising difficulties and the lack of deal making, Kim Kardashian has been quietly demoted from her position as managing partner to a “senior operating advisor” at SKKY Partners. This decision was reportedly mutual according to sources, acknowledging that her initial role “did not align with her strengths”. Despite her extensive business experience, Kardashian faced challenges in the realm of private equity fundraising, where her celebrity status and business acumen did not translate into the nitty gritty of financial deal structuring and fundraising the capital required to make huge, risky bets on consumer brands.
Implications for SKKY Partners
Kardashian’s demotion and the firm’s fundraising struggles highlight the challenges that even high-profile individuals face when transitioning into specialized financial sectors like private equity. The assumption that celebrity influence can seamlessly attract substantial investment has been called into question, emphasizing the need for domain-specific expertise and networks in successful fundraising.
For SKKY Partners, the immediate concern is to reassess its fundraising strategies and operational focus. The firm may need to recalibrate its approach, potentially seeking partners with deeper experience in private equity fundraising or exploring alternative investment strategies that align more closely with the strengths of its leadership team.
Kim Kardashian’s Future Endeavors
Despite her departure from the managerial role at SKKY Partners, Kim Kardashian continues to focus on her other business ventures. Her shapewear brand, SKIMS, valued at $4 billion, remains a significant success. Additionally, she has been promoting her beauty line, SKKN, and has teased the launch of a new cosmetics line, signaling her ongoing commitment to the beauty industry.
Kardashian is also pursuing a career in law, though her plans to take the California bar exam have been postponed to 2026 due to her busy schedule. Her recent acting endeavors, including a role in “American Horror Story: Delicate,” have received praise, showcasing her versatility in attempting to diversify beyond her usual business ventures.
