It came as a bit of a shock when, a year ago, Kim Kardashian and ex-Carlyle partner Sammons said they were going into business together, and setting out to start their own consumer business-focused private equity firm.
While the duo has yet to make a first deal—or even close their first fund—Sammons and Kardashian say they’ve narrowed in on a few targets, and are laying out their first handful of hires, and in a new feature story by my colleague Emma Hinchliffe they detail what the rest of us can expect from SKKY Partners.
Kardashian and Sammons are aiming to make eight to 12 control or active minority investments over the next four to five years, focused on the North American market, they told Hinchliffe, and plan to focus on what Kardashian specializes in: Think fashion and beauty, but also potentially sectors like like media, food and beverage, and hospitality. Here’s more:
In a September phone call from her Calabasas home, Kardashian painted a picture of her ideal portfolio company: It will have an active founder who puts their “heart and soul” into the company. “I want to hear their vision. I want to hear their dreams,” she says. She’s looking for the “magic sauce” that tells her a brand has something special. Also on her wish list is “authenticity,” not a startup that resembles her own brands. “It’s not like they’re going to start working with my fund and all of a sudden their whole brand is nude and beige, like a Kim-branded company,” she says. Instead, she wants to show founders how to find their own niche that resonates with consumers.
What Kardashian doesn’t want is any association with private equity’s reputation as a corporate raider. At its worst, the industry is known for buying up struggling businesses, laying off workers, and selling what’s left for parts. Sammons agrees that SKKY can avoid that approach. “There are a lot of great private equity firms that are excellent at fixing things that are broken”—also known as buying “distressed” businesses—“and financially engineering in a way that creates value for their investors. But it’s a very different way of creating value than we do,” he says.
And just how did the two of them decide to work with one another anyway?
For years, Sammons has lent Kardashian his ear. The two met a decade ago, after being introduced by Anastasia Soare, founder of beauty brand Anastasia Beverly Hills.
They bonded over their shared obsession with consumer brands that tapped into the cultural zeitgeist…The pair stayed in touch. Kardashian would sometimes call Sammons for business advice as he progressed in his own career.
As Sammons got to know Kardashian, he recognized that behind the glossy public persona is a businesswoman with an infallible gut instinct who doesn’t mind delving into operational minutiae. Kardashian trusts others in areas that she’s less familiar with, like finance, but she steers the decision making in the categories where she’s more confident—marketing, product, popular culture. When she was choosing Skims’ earliest products, her executive team was skeptical of the mass appeal of shapewear that conformed to skirts with high slits—with one leg cut as a short and the other a brief. Kardashian, who serves as Skims’ creative director, stuck by her instincts; Skims has sold the item for years.
Her skill set struck Sammons as a good fit for consumer private equity, a $71.7 billion category last year, where success depends on knowing what’s trending, and why—and how to help it get even bigger. So he made the unlikeliest of pitches to Kardashian and Jenner (now a SKKY senior advisor): He suggested they launch a private equity firm together.
You can read the full story here.
More craziness at Carta…Carta, the equity management startup backed by Andreessen Horowitz and last valued at $7.4 billion, has become entangled in two more lawsuits filed by former employees, both of whom are women. In separate lawsuits, the women allege instances of sexual harassment or sex discrimination, according to the complaints first reported by Coins2Day. In subsequent legal filings, Carta and one of its executives have vehemently denied the claims. You can read more here.
See you tomorrow,
Jessica Mathews
Twitter: @jessicakmathews
Email: [email protected]
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Joe Abrams curated the deals section of today’s newsletter.
VENTURE DEALS
- Iambic Therapeutics, a La Jolla, Calif.-based AI-powered drug discovery platform, raised $100 million in Series B funding. Ascenta Capital and Abingworth led the round and were joined by NVIDIA, Illumina Ventures, Gradiant Corporation, and others.
- Brite Payments, a Stockholm, Sweden-based platform for payments and payouts, raised $60 million in funding. Dawn Capital led the round and was joined by Headline and Incore.
- Automata Technologies, a London, U.K.-based robotics and automation provider for the life sciences industries, raised $40 million in funding. Dimension led the round and was joined by A.P. Moller Holding and others.
- Blackbird Labs, a New York City-based company that creates loyalty and membership programs for restaurants, raised $24 million in Series A funding. A16z led the round and was joined by Amex Ventures, Bolt, Union Square Ventures, Shine, Variant, and others.
- Electric Era Technologies, a Seattle, Wash.-based developer of EV charging stations, raised $13 million in Series A funding. HSBC Asset Management led the round and was joined by SQM Lithium Ventures, Blackhorn Ventures, Proeza Ventures, and Chevron Technology Ventures.
- Saleo, an Atlanta, Ga.-based product demonstration platform for sales teams, raised $12 million in funding from Emergence Capital and Tech Square Ventures.
- Peak Energy, a Denver, Colo.-based energy storage company, raised $10 million in funding. Eclipse led the round and were joined by TDK Ventures.
- Swag Golf, a Northbrook, Ill.-based golf accessory company, raised $10 million in funding. Verance Capital led the round and was joined by Aurum Partners, Shaun White, and others.
- Pow.Bio, a Berkeley, Calif.-based company developing fermentation technology for synthetic biology products, like synthetic meat, raised $9.5 million in Series A funding. ReFood and Thia Ventures led the round and were joined by Possible Ventures, XFactor Ventures, iSelect, Climate Capital, Vectors Capital, Better Ventures, Prithvi Ventures, and Cantos.
- Sensigo, a San Carlos, Calif.-based AI-powered platform designed to predict part failures, recommend replacements, and procure new parts for automotive repairs, raised $5 million in seed funding from UP.Ventures.
- scnd, a Paris, France-based online marketplace to buy and sell services, raised €4 million ($4.2 million) in seed funding from 42Cap and Partech.
- Purpose Green, a Berlin, Germany-based decarbonization consulting company for building owners, raised €3.3 million ($3.5 million) from Speedinvest and Atlantic Labs.
- ClearFeed, a Beaverton, Ore.-based platform that aggregates employee and customer requests on Slack and Microsoft Teams, raised $2.7 million in seed funding. Surge led the round and was joined by 8VC and angel investors.
- Responsibly, a Copenhagen, Denmark-based platform designed to help companies monitor the sustainability of their suppliers, raised $2.4 million in seed funding from Hambro Perks and Pi Labs.
- Genie, a Barcelona, Spain-based app-development platform, raised $1.2 million in pre-seed funding. Speedinvest led the round and was joined by Expa Ventures, Antler, APX/Heartfelt, and Shine Capital.
- Prophetic, a New York City-based startup building a device to induce and stabilize lucid dreams, raised $1.1 million in pre-seed funding. BoxGroup led the round and was joined by O’Shaughnessy Ventures, a16z’s Scout Fund, Spacecadet, Tekin Salimi, and others.
PRIVATE EQUITY
- Ascend Capital Partners acquired a majority stake in Seoul Medical Group, a Long Beach, Calif.-based healthcare service provider. Financial terms were not disclosed.
- CCMP Growth Advisors acquired Decks & Docks, a Clearwater, Fla.-based distributor of marine construction and outdoor living supplies. Financial terms were not disclosed.
- WF Cabinetry Group, backed by HCI Equity Partners, acquired Woodharbor Molding & Millworks, a Mason City, Iowa-based cabinetry and vanity manufacturer. Financial terms were not disclosed.
EXITS
- SK Capital Partners acquired Milestone Environmental Services, a Houston, Texas-based carbon management and environmental services provider, from Amberjack Capital Partners.
OTHER
- Origin acquired MyAdvocate, a New York City-based estate planning platform. Financial terms were not disclosed.
IPOS
- Guardian Pharmacy Services, an Atlanta, Georgia-based provider of pharmaceutical services for residents of long-term care facilities, filed to go public. The company posted $976 million in revenue for the year ending June 30, 2023. Bindley Capital Partners, Cardinal Equity Partners, and Pharmacy Investors back the company.
- PHI Group, a Lafayette, La.- based helicopter transportation provider for the oil and air medical fields, filed to go public. The company posted $831 million in total revenue for the year ending June 30, 2023. Q Investments, Oaktree Capital Management, and First Pacific Advisors back the company.
FUNDS + FUNDS OF FUNDS
- At One Ventures, a San Francisco-based venture capital firm, raised $375 million in its second fund focused on eco-friendly companies in construction, energy, transport, agriculture, and food.
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