Senate Finance Committee Chair Ron Wyden (D-Ore.) has recently intensified Democratic scrutiny of Jared Kushner’s business activities, specifically targeting his firm, Affinity Partners. Wyden requested detailed information about Affinity Partners’ investors, particularly focusing on the $2 billion investment received from Saudi Arabia’s Public Investment Fund (PIF) in 2021.
Concerns Over Investment Strategy
Wyden’s letter expressed significant concerns regarding Kushner’s limited experience as an investor, highlighting his lack of background in private equity or hedge funds. “Mr. Kushner’s limited track record as an investor, including his nonexistent experience in private equity or hedge funds, raise questions regarding the investment strategy behind the seeding investments and lucrative compensation that Affinity received from the Saudi PIF and other sovereign wealth funds,” Wyden wrote.
The Saudi Investment Decision
A panel responsible for screening investments for the Saudi PIF had initially advised against investing in Kushner’s firm due to his inexperience in finance. However, the full board, led by Crown Prince Mohammed bin Salman, overruled this recommendation, a decision reported by The New York Times in 2022.
A panel that screens investments for the main Saudi sovereign wealth fund cited concerns about the proposed deal with Mr. Kushner’s newly formed private equity firm, Affinity Partners, previously undisclosed documents show.
Those objections included: “the inexperience of the Affinity Fund management”; the possibility that the kingdom would be responsible for “the bulk of the investment and risk”; due diligence on the fledgling firm’s operations that found them “unsatisfactory in all aspects”; a proposed asset management fee that “seems excessive”; and “public relations risks” from Mr. Kushner’s prior role as a senior adviser to his father-in-law, former President Donald J. Trump.
Kushner’s Role in Trump Administration and Saudi Relations
During his tenure in the Trump administration, Kushner played a crucial role in advising on foreign affairs and strengthening ties with Saudi Arabia. He maintained close contact with Crown Prince Mohammed bin Salman, even after the crown prince was implicated in the murder of American journalist Jamal Khashoggi. This relationship has raised suspicions about the motivations behind the substantial Saudi investment in Affinity Partners.
Potential Conflict of Interest
Wyden’s letter underscores concerns that the $2 billion investment might have been a reward for Kushner’s actions benefiting the Saudi government, including preventing accountability for Khashoggi’s murder. “The Saudi PIF’s decision to invest $2 billion in Affinity so soon after Kushner’s departure from the Trump White House raises concerns that the investment was a reward for official actions Kushner took to benefit the Saudi government,” Wyden wrote.
Request for Detailed Information
Wyden has asked Affinity Partners to provide comprehensive details about its seeding investments, the specific investments made by the firm, the fees received, and Kushner’s compensation. As of now, the company has not responded to requests for comment made through its website.
Escalation of Democratic Scrutiny
Wyden’s letter marks a significant escalation in Democratic scrutiny of Kushner’s business dealings, which have been controversial since their inception. Even James Comer (R-Ky.), the House Oversight Committee chair and an ardent defender of Donald Trump, acknowledged last year that he “crossed the line of ethics” with his Saudi deal.
Comparison with Republican Investigations
While Comer has been leading Republicans’ impeachment inquiry against Joe Biden, focusing largely on business deals by his son, Democrats have been highlighting the substantial payments received by Trump’s businesses from foreign governments during his presidency. They have also questioned Kushner’s substantial Saudi payday. However, House Democrats lack subpoena power as they do not hold a majority in the chamber, unlike Wyden, who can leverage his position to demand information.
The ongoing scrutiny of Jared Kushner’s business activities by Senate Democrats, led by Ron Wyden, underscores the deepening concerns about potential conflicts of interest and ethical violations stemming from his firm’s substantial investment from the Saudi PIF. As investigations continue, the political and financial implications of Kushner’s dealings remain a focal point of contention in Washington.
The Saudi PIF’s investment in Kushner’s firm was notably more generous than its investment in former Treasury Secretary Steven Mnuchin’s fund, Liberty Strategic Capital. Mnuchin, who had a successful investment record before his government role, received $1 billion from the PIF. The differential treatment between Kushner and Mnuchin raises further questions about the motivations behind the investments.
