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Now she’s entering the secretive, not-so-pretty world of private equity, aka the land of “vulture capitalists.”
Here’s the deal: Kim K is partnering with Jay Sammons, a former executive with Carlyle Group, to launch SKKY Partners, a private equity firm that plans to invest in areas such as consumer products, hospitality, luxury, digital commerce and media. Her mother, Kris Jenner, is also a partner.
Quick explainer: Private equity can include a lot of different investments, but the vast majority of the industry involves “leveraged buyouts” or LBOs, in which a firm buys a struggling company, loads it up with debt, and then overhauls its business to (hopefully) make it run better, and then sells it or takes it public. In about 20% of cases, the target company ends up going bankrupt within 10 years (See also: the slow death of Toys R Us).
For the rank-and-file, getting bought by a PE firm is usually not a good sign, as it may mean layoffs or other cutbacks coming. But for investors,…
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