Affinity Partners

Last updated

Affinity Partners
Company type Private
Industry Investment management
FoundedJuly 1, 2021;3 years ago (2021-07-01) in Miami, United States
Founder Jared Kushner
Headquarters
Miami
,
United States
Key people
 Jared Kushner, Bret Pearlman and Asad Naqvi
ProductsInvestment fund
Number of employees
20 (2021)
Website affinitypartners.com

Affinity Partners is an American investment firm, based in Miami, Florida. It was formed in 2021 by Jared Kushner, Donald Trump's son-in-law who also served as a senior advisor during Trump's presidency. The firm has a focus on investing in American and Israeli companies. Its sources of funding are overwhelmingly from the Saudi Arabian government.

Contents

Kushner's firm received commitments of more than $3 billion by the end of 2021 to invest in American and Israeli companies that are expanding in India, Africa, the Middle East and other parts of Asia. Investors include $2 billion from the Saudi government's sovereign wealth fund, Public Investment Fund, with Kushner stating that he hopes to open an "investment corridor between Saudi Arabia and Israel", [1] [2] seen internationally as a "sign of warming ties between two historic rivals". [3] Officials who head the Public Investment Fund objected to investing in Kushner's firm, but Saudi ruler Mohammed bin Salman overruled those officials. [4]

The firm has a staff of approximately 20 people. [5] By 2024, the firm had returned no profits to its investors. [6]

History

Capitalization and investors

Kushner sought funds for the new company through the sovereign wealth funds of Gulf countries. [7] [8] The Saudi government's Public Investment Fund invested $2 billion in Kushner's firm, six months after Kushner left the White House. [9]

The firm primarily depended on Saudi money. As of April 2022, it had $2.5 billion under its management. [9]

In a May 2022 interview with The Wall Street Journal , Kushner said: "If we can get Israelis and Muslims in the region to do business together, it will focus people on shared interests and shared values." He added, "we kicked off historic regional change which needs to be reinforced and nurtured to achieve its potential." [10]

Investment portfolio

The fund has invested in two undisclosed Israeli hi-tech companies. [11] [2] The Wall Street Journal reported that "it is the first known instance that the Saudi Public Investment Fund's cash will be directed to Israel, a sign of the kingdom's increasing willingness to do business with the country."

In March 2022, Affinity executives heard pitches from 13 to 15 Israeli startups. [12]

In July 2023, it was announced that Affinity was the primary backer in Munich-based fitness technology company EGYM's £225 million Series F funding round. The investment represented Affinity's first European investment. [13]

In March 2024, Affinity began advanced discussions with Aman Resorts to build an eco-resort community off the coast of Albania. [14]

In November 2024, Forbes reported that Affinity "helped boost Kushner’s net worth to at least $900 million, up 180% from early 2017, when he became senior advisor to Trump." [15]

Controversy

According to ethics experts, the investment created the appearance of potential payback for Kushner, given that he had been a staunch defender of Saudi crown prince Mohammed bin Salman while at the White House. [9] The House Oversight Committee said on June 2, 2022, that it had opened an investigation into whether Kushner had traded on his government position to get the deal. [16]

As of 2024, the fund has made $157 million in management fees (including $87 million from the Saudi government alone) since 2021. [17] The fund is under Senate investigation for possible foreign influence buying ahead of the 2024 election after a New York Times report suggested that Kushner used contacts he made from his role in Trump's White House. [17] [18] According to Reuters, Kushner has also been in multiple discussions on US-Saudi diplomacy since Trump left office and could lead to questions as to whether his financial ties would influence US foreign policy should Trump get reelected. [19]

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References

  1. ↑ Holland, Steve (December 23, 2021). "Jared Kushner investment firm Affinity raises $3 billion in committed funding". Reuters. Retrieved June 10, 2022.
  2. 1 2 "Jared Kushner's Fund to Invest Saudi Millions in Israeli Tech, WSJ Reports". Haaretz. Retrieved June 9, 2022.
  3. ↑ Jones, Dion Nissenbaum and Rory (May 8, 2022). "WSJ News Exclusive | Jared Kushner's New Fund Plans to Invest Saudi Money in Israel". The Wall Street Journal. ISSN   0099-9660 . Retrieved June 11, 2022.
  4. ↑ Kirkpatrick, David D.; Kelly, Kate (April 10, 2022). "Before Giving Billions to Jared Kushner, Saudi Investment Fund Had Big Doubts". The New York Times. ISSN   0362-4331 . Retrieved February 14, 2024.
  5. ↑ Holland, Steve (December 23, 2021). "Jared Kushner investment firm Affinity raises $3 billion in committed funding". Reuters. Retrieved June 9, 2022.
  6. ↑ "Kushner's Fund Has Reaped Millions in Fees, but So Far Returned No Profits". New York Times. 2024.
  7. ↑ Holland, Steve (November 4, 2021). "Kushner investment firm ramping up activities with new hires". Reuters– via www.reuters.com.
  8. ↑ Kelly, Kate; Kirkpatrick, David D.; Rappeport, Alan (November 26, 2021). "Seeking Backers for New Fund, Jared Kushner Turns to Middle East". The New York Times . Retrieved December 11, 2021.
  9. 1 2 3 Kirkpatrick, David D.; Kelly, Kate (April 10, 2022). "Before Giving Billions to Jared Kushner, Saudi Investment Fund Had Big Doubts". The New York Times. ISSN   0362-4331 . Retrieved April 10, 2022.
  10. ↑ Jones, Dion Nissenbaum and Rory. "Jared Kushner's New Fund Plans to Invest Saudi Money in Israel". The Wall Street Journal . Retrieved March 31, 2024.
  11. ↑ Jones, Dion Nissenbaum and Rory (May 8, 2022). "WSJ News Exclusive | Jared Kushner's New Fund Plans to Invest Saudi Money in Israel". The Wall Street Journal. ISSN   0099-9660 . Retrieved June 9, 2022.
  12. ↑ "Jared Kushner coming to Israel in search of tech investments". ctech. March 20, 2022. Retrieved June 9, 2022.
  13. ↑ "Jared Kushner's Affinity Makes First European Investment". Bloomberg.com. July 5, 2023. Retrieved August 9, 2023.
  14. ↑ Bartenstein, Ben (March 15, 2024). "Jared Kushner's Firm Eyes Billion-Dollar Property Deals in the Balkans". bloomberg.com.
  15. ↑ Tognini, Giacomo. "Why Jared Kushner Will Become A Billionaire No Matter Who Wins". www.forbes.com. Retrieved November 7, 2024.
  16. ↑ Kate Kelly; David D. Kirkpatrick (June 2, 2022). "House Panel Examining Jared Kushner Over Saudi Investment in New Firm". The New York Times.
  17. 1 2 Tait, Robert (September 25, 2024). "Jared Kushner's private equity firm faces inquiry as it fails to return profits". The Guardian. ISSN   0261-3077 . Retrieved October 1, 2024.
  18. ↑ Lipton, Eric; Swan, Jonathan; Haberman, Maggie (March 15, 2024). "Kushner Developing Deals Overseas Even as His Father-in-Law Runs for President". New York Times.
  19. ↑ Roston, Aram; Ulmer, Alexandra (October 4, 2024). "Trump son-in-law Kushner has discussed US-Saudi diplomacy with Saudi crown prince". Reuters.
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