Kim Kardashian’s $1B Fund – How She Did It


I’m going to explain how Kim Kardashian’s $1 billion private equity fund is structured. If you wait until the end, you’ll be able to take notes and see how you can build one for yourself, mainly for buying real estate or purchasing businesses. The way it’s structured, if you pay close attention, is similar to other billion-dollar funds. Her co-founder, who works at Carlyle, the largest private equity fund conglomerate in the world, suggests they’ll likely purchase revenue-generating e-commerce businesses in specific niches. Private equity funds usually have a general partnership and a limited partnership, but because this is more institutional, there’s also an investment manager. The firm is called Sky Partners, and it’s likely that they’ll create multiple funds. Their first fund aims to raise $1 billion. In an interview in New York when it launched, Kardashian revealed she won’t be doing much of the financial work. Instead, she’ll focus on building and growing the companies. It makes sense that she made the shift to private equity, as she was fined over $1 million for not disclosing she was paid to promote a token while working in cryptocurrency. (is kim kardashian a billionaire)


Jay Simons, a co-founder of the company, works at the Carlyle Group and has assisted in raising billions of dollars and managing nearly $400 billion in private equity deals. He is likely to focus on capital raising and the creation of entities and setup. Kim Kardashian and Jay Simons are partners in the general partnership they create. If they create investment managers under the general partnership, it is likely that they will share responsibility for these as well. The limited partnership is where the billion dollars will go for limited partners who want to invest. Jay Simons will likely be responsible for selling and promoting the investment to his contacts at Carlyle Group, as long as it fits within his contracts. After deals are acquired, the general partnership may invest some of their own money. Kim Kardashian will likely reach out to companies such as makeup companies and promote their products, increasing sales and valuations of these companies. (is kim kardashian a billionaire)

The likely target for this fund will be existing companies that are already generating revenue. This is because Jay Simons, a business partner, works at private equity funds at Carlyle Group, which typically invest in companies that already have a track record and are generating money. In general, it is easier to raise money for deals that have already made a profit than for those that have not. It is likely that the $1,000,000,000 fund will not be a venture capital fund. The general partners, Kim Kardashian and Jay Simons, as well as the investment manager, will receive a percentage of the money they manage, usually a 2% management fee, and a performance fee. The performance fee can be negotiated, but is often based on the internal rate of return, which is the compound growth of the deal’s profits. For example, if the internal rate of return is 12%, the general partners may charge a 20% fee on the profits from that return. (is kim kardashian a billionaire)

The key takeaway from this is that when creating a private equity fund, it is important to have a strong plan for growing the fund and getting attention for it. Kim Kardashian stated that she will not focus on finance but rather on growing the businesses in the companies acquired, whether it be in real estate or mergers and acquisitions. It is beneficial to partner with someone who can bring attention to your deals, not just for the investors but also for the growth of the business. Many people struggle to find investors partly because some of the deals they work on do not have the potential to make enough money. Therefore, consider copying this strategy; create a general partnership and investment manager, and a limited partnership with someone who can bring growth to the revenue-generating businesses you acquire, and have another person focus on capital raising and growing the team. This way, you will be well on your way to success. (is kim kardashian a billionaire) on LinkedIn

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