The $2 billion investment from Saudi Arabia's sovereign wealth fund into Jared Kushner’s private equity firm, Affinity Partners, has drawn intense scrutiny due to potential conflicts of interest and the unusual circumstances of the deal.

 

Massive Saudi investment raises questions about Jared Kushner's business...

The $2 billion investment from Saudi Arabia's sovereign wealth fund into Jared Kushner’s private equity firm, Affinity Partners, has drawn intense scrutiny due to potential conflicts of interest and the unusual circumstances of the deal.

 

Key Ethical and Business Concerns

Overruled Objections: The Saudi Public Investment Fund (PIF) panel initially rejected the deal, calling Kushner’s firm "unsatisfactory in all aspects" and citing his lack of experience.

MBS Intervention: Crown Prince Mohammed bin Salman (MBS) personally overruled his advisers to approve the investment, raising questions about a potential quid pro quo for Kushner's supportive policies while in the White House.

Management Fees: Despite not returning any profits to investors as of late 2024, the firm has reportedly collected approximately $157 million in management fees, with $87 million coming from the Saudi fund.

Timing & Influence: Critics and congressional investigators argue the investment may be a "bet" on a future Trump administration, providing Saudi Arabia with significant leverage or "goodwill."

 

Ongoing Investigations and Disclosures

Senate Inquiry: Senator Ron Wyden launched an investigation in 2024, questioning why the firm had not generated profits despite hefty fees and whether it served as a channel for foreign influence.

Financial Disclosures: A 2026 public letter from Citizens for Responsibility and Ethics in Washington (CREW) requested that Kushner be subject to stricter financial disclosure rules similar to other public servants.

Transparency Loopholes: Reports suggest the firm utilized legal structures to avoid disclosing the specific sources of its funds to the SEC, though it is now known that roughly 99% of its $3 billion capital comes from foreign sources.

 

Notable Investments by Affinity Partners

The firm has recently accelerated its deployment of capital into various global sectors:

Gaming: Leading a $55 billion deal alongside the PIF and Silver Lake to take Electronic Arts (EA) private.

Israeli Markets: Investing in Phoenix Holdings Ltd. and the Shlomo Group, marking a rare instance of Saudi-backed capital entering the Israeli economy.

International Real Estate: Proposed luxury hotel developments in Serbia and Albania, which involve local governments as business partners.