In the year Months after leaving the White House in 2021, Jared Kushner Despite objections from the fund’s advisers to the deal, it received a $2 billion investment from a fund run by a Saudi prince.
A panel that scrutinizes investments for Saudi sovereign wealth funds has expressed concern about Kushner’s new private equity firm, Affinity Partners. according to New York TimesKushner cited issues such as the company’s lack of experience, the possibility that the government would bear most of the investment risk, insufficient due diligence on the company’s operations, excessive asset management fees and public relations concerns from his previous work as a senior adviser to the president. Trump.
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But the full board of the $620 billion public investment fund, led by Crown Prince Mohammed bin Salman, rejected the group. The deal has raised ethical concerns as it could be seen as a repudiation of Kushner’s actions in the White House or an attempt to curry favor with Trump as he seeks another term as president in 2024.
Kushner’s close relationship with the Saudi prince, including his defense of him after Khashoggi’s assassination, has also drawn attention. Interestingly, the Saudi fund is twice as large as that of former Treasury Secretary Steven Mnuchin, even though Mnuchin had a successful investment record before entering government.
In response, a spokesman for Kushner’s firm emphasized their careful screening criteria for investors, while the Saudi fund declined to comment on the investment process. The deal documents show that Kushner’s work is dependent on Saudi money.
Kushner originally planned to raise up to $7 billion from Saudi Arabia, but found few major investors. In its most recent filing, his firm reported $2.5 billion under management, primarily from overseas investors.
Both Kushner and Mnuchin have offered Saudi funds discounts on asset management fees and fund profits. However, the Saudis agreed to pay Mnuchin’s company a lower fee.
The argument for the Saudi fund investing in Kushner’s company was in contrast to Mnuchin’s easy approval of the proposal. Mnuchin’s fund focused on cyber security, financial technology and entertainment, while aligning with Saudi priorities, Kushner’s company had no clear focus.
Kushner’s lack of private equity experience and unsatisfactory due diligence findings are acknowledged but attributed to the company’s early stages. The Saudi fund has set conditions for Kushner’s company to divest its investment.
Despite objections from some panel members, the board ultimately approved the deal, citing its intent to forge a strategic relationship with Affinity Partners and Jared Kushner.
It was this week. announced Affinity Partners is making its first investment in an Israeli car company, acquiring a $150 million minority stake. In this transaction, Affinity will acquire a 15% stake in the auto and credit division of closely held Israeli company S. Shlomo Holdings Ltd. The investment was announced on September 6.
The investment raises questions about Affinity Partners’ strategic direction and growing global portfolio.
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This column Jared Kushner’s post-White House $2 billion Saudi investment ethics debate and Saudi Arabia’s skepticism over “inexperience” and “public relations risks.” It appeared at first Benzinga.com
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