New York CNN –
Kim Kardashian’s private equity firm has announced its first investment: a company that makes truffle sauces sold for about $20 a bottle.
SKKY partners, the company he founded last year with a former Carlyle Group executive, has acquired a “significant minority interest” in truffle sauces. The brand, which started six years ago, has recently grown in popularity for its condiments ranging from hot sauce to mayonnaise.
In a press release Tuesday, SKKY called Truff a “premium flavor enhancement brand” and said its “distinctive flavor, high-quality ingredients, new product innovation and social following” have made the brand a target of interesting investment.
“Truff is exactly the type of business that embodies what we were looking for when we founded SKKY: a next-generation brand with a deep, authentic connection with consumers and the potential for continued growth,” Kardashian said. “We are proud to kick off the SKKY portfolio with this investment.”
Launched in 2017, Truff has expanded beyond its direct-to-consumer model and now sells its sauces at Target, Whole Foods and Publix. The sauce brand recently had high-profile collaborations with Taco Bell for a custom hot sauce and Hidden Valley for a specialty seasoning.
The transaction also includes the addition of Mark Ramadan, co-founder and former CEO of Sir Kensington’s Condiments, to Truff’s board of directors. He helped sell that brand, best known for its fancy ketchups, for a … reported $140 million in 2017 at Unilever.
Financial terms of Truff’s deal with SKKY were not disclosed and is expected to close early next year.
SKKY’s investment is a “big vote of confidence in the company and its founders,” according to Neil Saunders, retail analyst and managing director of GlobalData Retail.
“Truff has been one of the growth stars of the consumer packaged goods world and has managed to increase its appeal and reach without sacrificing its brand’s premium positioning,” Saunders told CNN. She added that the addition of Ramadan is a “big plus” because of its “very strong pedigree in consumer goods.”
Kardashian founded SKKY in 2022 with Jay Sammons, a 16-year veteran of global private equity firm Carlyle. However, she has made no investments and has so far remained largely quiet about her ambitions.
SKKY said in a statement that the company’s “primary goal is to identify culturally relevant brands that create deep emotional connections with their target consumers and offer those consumers coveted products and services.”
Investment targets include companies in the health and wellness, food and beverage, and apparel sectors.
Kardashian’s corporate experience extends beyond private equity. Skims, his underwear and clothing brand, recently launched a line for men. Expanding beyond a customer base of women is a possible prelude to an initial public offering for the company; however, nothing has been officially announced.