Kim Kardashian needs no introduction. The infamous TV star has cemented herself as a celebrity icon and has worked in several industries. She has produced her own fragrances and fashion lines, and expanded into other areas of the entertainment industry, like the app space. But her new company is likely her most unexpected move yet.
What is Kim Kardashian’s new company?
According to the Wall Street Journal, Kim Kardashian is teaming up with Jay Sammons to form SKKY Partners, a private-equity firm. Reports also say Kris Jenner will be joining the firm as a partner.
According to the Wall Street Journal, this company will be “focused on investing in and building consumer and media businesses.” It will work in “sectors including consumer products, hospitality, luxury, digital commerce, and media as well as consumer-media and entertainment businesses.”
Jay Sammons is a former member of the highly prestigious Carlyle Group Inc. private equity firm. So he has had plenty of experience in this field, suggesting that this company will quickly become a massive player in the sector.
Kim told the Wall Street Journal that:
“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 also told the publication that, while SKKY Partners has yet to make any investments, it plans to before the end of the year and that they’ll also begin fundraising soon.
What is a private-equity firm?
At its most basic, a private-equity firm is a firm that raises money from its partners and investors and pools it. The firm then uses this pooled money to invest in a company. Usually, they’ll take an ownership stake within the company or buy it out entirely, most commonly via a leveraged buyout. So many private-equity firms are managing several companies at once.
Usually, a private-equity firm will have a specific field they work within. Hence why Wall Street Journal noted that Kim’s firm would work in the “consumer products, hospitality, luxury, digital commerce, and media as well as consumer-media and entertainment businesses.”
When a private-equity firm invests in a company, it is usually a long-term thing with the firm holding on to a company for five to ten years. The private-equity firm makes its money by taking a cut when the company is sold and by charging management fees. However, the exact details vary from company to company.
