Topline
Affinity Partners, a new private-equity fund started by Jared Kushner, plans to invest money from Saudi Arabia’s sovereign wealth fund in Israeli businesses, the Wall Street Journal reported Saturday, marking the first time the giant Saudi fund has invested in Israel, with which the Saudi government does not have a formal diplomatic relationship.
Former presidential adviser Jared Kushner delivers a speech at the Royal Palace in the Moroccan … [+]
Key Facts
Affinity Partners has selected at least two Israeli startups to invest in, people familiar with the plans told the Journal.
Affinity Partners has raised more than $3 billion, which includes a $2 billion commitment from the Saudi Public Investment Fund.
After Saudi officials agreed Affinity Partners could invest in Israel, Kushner, who played a leading role in the Middle East policy of his father-in-law Donald Trump’s presidential administration, met with dozens of companies ranging from agriculture to healthcare to software, people familiar with the meetings told the Journal.
Kushner did not specify which Israeli businesses the firm would be working with, nor how much money will be directed toward Israel, but he told the Journal his work in the White House “kicked off historic regional change which needs to be reinforced and nurtured to achieve its potential.”
A representative for Kushner did not immediately respond to a request for comment from Forbes.
Key Background
Kushner, who founded Affinity Partners after leaving the White House in 2021, played a significant role in advancing Israel’s relations with its Arab neighbors while serving as a senior adviser, despite having no diplomatic experience. He helped broker the Abraham Accords, which brought a normalization deal between Israel, Bahrain and the United Arab Emirates. He developed strong ties with Saudi Arabia’s leader, Crown Prince Mohammed bin Salman, and was one of the leading defenders of the prince in the Trump White House after U.S. intelligence determined that he had ordered the brutal killing of Jamal Khashoggi, a Washington Post columnist who had criticized the Saudi government.
Surprising Fact
A panel that reviews investments for the Saudi Public Investment Fund—worth about $620 billion—initially objected to the proposed deal between Saudi Arabia and Affinity Partners. The New York Times reported last month that the panel raised concerns such as “the inexperience of the Affinity Fund management” and the possibility that the kingdom would be responsible for “the bulk of the investment and risk,” according to minutes from a June 30 meeting obtained by the Times. The full board of the investment fund overruled the panel days later, the Times reports.
What To Watch For
Affinity Partners is seeking to bring Israeli technology to Indonesia, another majority-Muslim country without diplomatic relations with Israel, the Journal reports. Prior to leaving the White House, Kushner and his team were working on a normalization deal between the two countries, but the agreement didn’t come together before the Trump administration left office.
Further Reading
Jared Kushner’s New Fund Plans to Invest Saudi Money in Israel (The Wall Street Journal)
How Did Jared Kushner Get $2 Billion From the Saudis? (The Washington Post)
Before Giving Billions to Jared Kushner, Saudi Investment Fund Had Big Doubts (The New York Times)
Source: https://www.forbes.com/sites/annakaplan/2022/05/07/saudi-arabia-reportedly-will-invest-in-israel-through-jared-kushners-fund/