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Wellington in talks to invest in Kim Kardashian's Skims at $4 billion valuation-sources

Published 07/12/2023, 05:13 PM
Updated 07/12/2023, 10:40 PM
© Reuters. FILE PHOTO: Television personality Kim Kardashian attends a panel for the documentary "Kim Kardashian West: The Justice Project" during the Winter TCA (Television Critics Association) Press Tour in Pasadena, California, U.S., January 18, 2020. REUTERS/Mar

(This story has been refiled to remove the extraneous word 'valuation' in paragraph 1)

By Abigail Summerville and Krystal Hu

(Reuters) - Investment firm Wellington Management is in talks to lead a new funding round for Skims, which could value the underwear clothing company owned by Kim Kardashian at about $4 billion, according to people familiar with the matter.

The Boston-based asset manager is in discussions to make a significant commitment to the fast-growing business in what could be its last fundraising as it gears up for an initial public offering that could happen within a year, the sources said, requesting anonymity because the matter is confidential.

Skims and Wellington did not respond to comment requests. Women's Wear Daily reported on the Skims funding round earlier on Wednesday without naming Wellington.

Skims launched in 2019 and sells bras, loungewear and shapewear directly to customers through its online store and at outlets owned by department store chains.

The sources said Skims raked in $500 million in revenue in 2022, and is profitable. The company raised $240 million last year at a $3.2 billion valuation, led by hedge fund Lone Pine Capital. Other investors included D1 Capital Partners, as well as existing investors Thrive Capital, Imaginary Ventures and Alliance Consumer Growth.

© Reuters. FILE PHOTO: Television personality Kim Kardashian attends a panel for the documentary

Kardashian's businesses - which also include makeup brand KKW - have gained popularity with young shoppers over the last few years thanks to the TV personality's huge social media following.

Kardashian is also actively raising funds for her new private equity firm SKKY Partners, which focuses on consumer and media investments. She co-founded the firm last year with ex-Carlyle Group Inc executive Jay Sammons.

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