Celebrities and sports brands are more eager than ever to lend their legitimacy and likeness to new ventures, and private equity firms are more than happy to oblige.
One of the most high-profile partnerships among these has taken things even a step further, putting the celebrity behind the wheel to direct private equity funding. In September 2022, reality megastar Kim Kardashian co-founded SKKY Partners alongside Jay Sammons, who formerly headed the global consumer, retail and media division for The Carlyle Group.
The company, which has target sectors including consumer products, digital and e-commerce, consumer media, hospitality and luxury brands, began fundraising in March 2023, according to a company press release. SKKY Partners has dual headquarters in Boston and Calabasas; Sammons resides in the former, while Kardashian is a resident of Calabasas.
Joining the ranks of entertainers-turned-angel investors such as Jay-Z and Ashton Kutcher, Kardashian is leading a new wave of big names looking to make fortunes outside of Hollywood. Mehdi Khodadad, a Century City-based partner at Sidley Austin LLP focusing on technology and life sciences companies and their private equity sponsors, said the hype has been driven in no small part by the recent Hollywood strikes.
“Branding like this has been around for a while now – think back to Vitaminwater and 50 Cent – but you’re really seeing celebrities are jumping on the bandwagon (after) the Screen Actors Guild strike,” said Khodadad. “It had a profound effect on just about everyone in the celebrity realm, and suddenly, the idea of finding some alternative source of income suddenly held a lot of appeal. They’re looking for different verticals and jumping into branding opportunities.”
‘Words carry substance’
Chris Manderson, chair of the corporate practice at the Beverly Hills-based law firm Ervin Cohen & Jessup LLP specializing in mergers and acquisitions and private equity, said the significant…
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