The family business · 2024 campaign · № 40

Family business

Senate inquiry finds Kushner's firm collected up to $157 million in fees from foreign clients

“Partisan politics aside, Affinity Partners is an SEC-registered investment firm that has always acted appropriately and any suggestion to the contrary is false” Chad Mizelle, chief legal officer of Affinity Partners
Date
, Statement to The New York Times in response to a letter from Senate Finance Committee Chair Ron Wyden
Subject
Saudi Arabia
Benefit
Investments and funds
Government
Saudi Arabia Freedom House: Not Free (2024)
Beneficiary
Jared Kushner (Affinity Partners)
Amount
as much as $157 million in fees, including $87 million from Saudi Arabia
Topic
Ethics & conflicts
Era
2024 campaign

What happened

Senate Finance Committee Chair Ron Wyden wrote to Affinity Partners on September 24, 2024 that the firm had received as much as $157 million in fees from foreign clients since 2021, including $87 million from the Saudi government, and had not distributed earnings to its investors as of July 2024. His committee said Affinity disclosed a 1.25 percent annual fee on the Saudi Public Investment Fund's $2 billion commitment. The New York Times put the fees paid by Saudi Arabia and other foreign investors at no less than $112 million and reported that the rest of the firm's roughly $3 billion came mostly from the sovereign wealth funds of Qatar and the United Arab Emirates. Affinity called the letter a political move, said it had followed all laws and ethics rules, and said a delay in returning profits was not unusual for a private equity firm. On October 24, 2024 Wyden and Rep. Jamie Raskin asked Attorney General Merrick Garland to appoint a special counsel to examine whether Kushner should have registered as a foreign agent.

Sources

  1. Wyden Investigation of Kushner Firm Continues; New Letter Outlines Affinity Partners' Fee Structure, Lack of Return to Investors, Questionable Deals with Foreign Governments U.S. Senate Committee on Finance, Sep 25, 2024
  2. Jared Kushner's Saudi-backed fund paid millions in fees, makes no profit The New York Times (via The Seattle Times), Sep 26, 2024
  3. Jared Kushner's private equity firm faces inquiry as it fails to return profits The Guardian, Sep 25, 2024
  4. Wyden, Raskin Call for Department of Justice to Appoint a Special Counsel to Investigate Jared Kushner for Acting as an Unregistered Foreign Agent U.S. Senate Committee on Finance, Oct 24, 2024
  5. Saudi Arabia: Freedom in the World 2024 Country Report Freedom House, 2024