Jared Kushner has just landed a huge $2 billion investment in his new private equity, Affinity Partners, from the Saudi sovereign wealth fund.
The deal came despite objections from the fund’s advisers about Kushner’s experience.
The objections included “the inexperience of the Affinity Fund management” and the chance that the Saudis would be responsible for “the bulk of the investment and risk.”
Red flags were raised because the firm’s operations were not completely set up which the advisers called “unsatisfactory in all aspects.”
The Saudis also thought this could be a “public relations risk” as relations with America are at a low point after Biden snubbed MBS.
A spokesman for Kushner’s firm acknowledged the investment from the Saudis but not the amount saying: “Affinity, like many other top investment firms, is proud to have PIF and other leading organizations that have careful screening criteria, as investors.”
In a March 31 filing with the Securities and Exchange Commission (SEC), Kushner revealed his fund had $2.5 billion under management.
Most of that cash is the $2 billion from Saudi Arabia.
The New York Times reports:
“The Saudi documents obtained by The Times say that in return for its investment, the Saudi fund would receive a stake of at least 28 percent in Mr. Kushner’s main investment vehicle.
“No law or rules constrain the investment activities of former administration officials after leaving the White House; many from both parties have profited from connections and experiences gained in government.
“…The explanation for the absence of any American institutional investors in Mr. Kushner’s fund was that he ‘would like to avoid media attention,’ the written responses said. ‘Accordingly, Affinity has approached international investors on a very discreet basis.'”
Six months after leaving the White House, Jared Kushner secured a $2 billion investment from a fund led by the Saudi crown prince, a close ally during the Trump administration, despite objections from the fund’s advisers about the merits of the deal. https://t.co/FDlmrzvYdw pic.twitter.com/OHfyPVHsHN
— The New York Times (@nytimes) April 10, 2022