The family business · Between terms · № 34

Family business

Saudi sovereign wealth fund commits $2 billion to Kushner's firm over its advisers' objections

“Affinity, like many other top investment firms, is proud to have PIF and other leading organizations that have careful screening criteria, as investors.” Affinity Partners spokesman
Date
, Statement to The New York Times, published April 10, 2022
Subject
Saudi Arabia
Benefit
Investments and funds
Government
Saudi Arabia Freedom House: Not Free (2021)
Beneficiary
Jared Kushner (Affinity Partners)
Amount
$2 billion
Topic
Ethics & conflicts
Era
Between terms

What happened

Six months after Jared Kushner left the White House, Saudi Arabia's Public Investment Fund agreed to invest $2 billion in his new firm, Affinity Partners, The New York Times reported on April 10, 2022 from internal fund documents. Minutes of a June 30, 2021 meeting show that the fund's screening panel cited "the inexperience of the Affinity Fund management," due diligence that found operations "unsatisfactory in all aspects" and a fee that "seems excessive"; days later the board, led by Crown Prince Mohammed bin Salman, overruled the panel. The documents indicated a 1.25 percent annual management fee, or $25 million a year, and a Saudi stake of at least 28 percent in Kushner's main investment vehicle. The Times reported that as a White House adviser Kushner helped broker $110 billion in weapons sales to Saudi Arabia and defended the crown prince after the killing of Jamal Khashoggi. House Oversight chair Carolyn Maloney opened an investigation in 2022, which Republicans closed after taking control of the House; a Kushner spokesman said he "fully abided by all legal and ethical guidelines both during and after his government service."

Sources

  1. Before Giving Billions to Jared Kushner, Saudi Investment Fund Had Big Doubts The New York Times (via Internet Archive), Apr 10, 2022
  2. Kushner Firm Got Hundreds of Millions From 2 Persian Gulf Nations The New York Times (via Internet Archive), Mar 30, 2023
  3. White House for Sale: How Princes, Prime Ministers, and Premiers Paid Off President Trump House Committee on Oversight and Accountability, Democratic staff report, Jan 4, 2024
  4. Saudi Arabia: Freedom in the World 2021 Country Report Freedom House, 2021