RSN: FOCUS: Bess Levin | Further Evidence Emerges the Saudis Did Not Pay Jared Kushner Billions Because They Thought He Was an Investing Genius

 

 

21 April 22

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FOCUS: Bess Levin | Further Evidence Emerges the Saudis Did Not Pay Jared Kushner Billions Because They Thought He Was an Investing Genius
Bess Levin, Vanity Fair
Levin writes: "Earlier this month, The New York Times reported that Jared Kushner's years of Saudi ass-kissing and murder-excusing had paid off, literally, when the country's sovereign wealth fund gave him $2 billion for his newly formed private equity firm, Affinity Partners."

His firm’s very embarrassing pitch deck suggests it was more about the whole letting-them-get-away-with-murder business.

Earlier this month, The New York Times reported that Jared Kushner’s years of Saudi ass-kissing and murder-excusing had paid off, literally, when the country’s sovereign wealth fund gave him $2 billion for his newly formed private equity firm, Affinity Partners. How do we know it was, most likely, Kushner’s extremely friendly relationship with the kingdom and Saudi crown prince Mohammed bin Salman that sealed the deal and not, say, his investing prowess? For one thing, as The Times noted, the panel that performs due diligence for the Saudi fund concluded Kushner’s firm was a joke—that management was “inexperience[d],” that the kingdom would be responsible for “the bulk of the investment and risk,” that its fees were “excessive,” and that the firm’s operations were “unsatisfactory in all aspects.” The panel warned that the country shouldn’t give the former first son-in-law a dime. But then those grave, unequivocal warnings were mysteriously overridden by the fund’s board, led by M.B.S., i.e., the guy who approved a plan to kidnap and dismember a man via bone saw and benefited from Kushner’s unwavering support. (Kushner, The Times reminds people, “played a leading role inside the Trump administration defending [bin Salman]” after Jamal Khashoggi’s murder, and urged Donald Trump to support the prince, arguing that the whole situation would blow over.)

Why else do we suspect the $2 billion was more of a reward (and a downpayment should Trump return to the White House) than it was about Kushner being an actually worthwhile investment? In addition to the due diligence panel’s reservations, there’s also the matter of Affinity’s pitch deck, which was recently obtained by The Intercept. The pitch deck manages to simultaneously demonstrate almost no investment expertise or thesis while brazenly suggesting would-be investors would benefit from the firm’s influence peddling after writing Jared a check. “Affinity carries out a thorough and in-depth assessment of potential investments and examines a range of quantitative and qualitative factors,” reads one slide, while hilariously noting that “weekly investment discussions” are one of the key parts of the “Affinity Investment System.” On the barely concealed promise to leverage Kushner’s domestic and foreign connections, the firm writes: "We approach opportunities creatively based on the concept that aligned economic interests can solve intractable problems and create previously unrealized value,” and “Affinity’s unique network and experience makes us a differentiated partner for companies navigating the rapidly evolving global political and economic environment.” As The Intercept writes, “The slides make repeated reference to Affinity’s ‘network,’ which includes a bevy of Trump administration appointees depicted in a ‘Team Members’ section,” and describes Kushner as “leading the negotiations on the historic OPEC+ oil agreement in April 2020 among the United States, Saudi Arabia, and Russia,” a not-so-subtle hint that the former senior White House adviser holds sway “with the oil-rich Saudi kingdom.”

Not surprisingly, a source told The Intercept that numerous investors approached by Affinity were not impressed by the pitch and were shocked at “how cavalierly it seemed to suggest influence peddling.” These investors reportedly said, as the source recalled, “they’d never seen such a joke of a deck, openly talking about ‘networking’ and ‘networks’—i.e., our corrupt insider contacts. ...They’re bragging about ‘networks,’ they’re using cliches, with no serious investment discussion.”

A spokesperson for Kushner insisted that there was nothing inappropriate about the deck, telling The Intercept: “Jared was very successful in the private sector before he entered government, achieved great success in government, and many are confident he will enjoy continued success in his new venture. Jared’s track record in government was unprecedented. His leadership and efforts led to the historic Abraham Accords, the [U.S.–Mexico–Canada Agreement] which was the largest trade deal in history, life changing criminal justice reform, Operation Warp Speed among many other achievements.” The spokesperson did not mention that Kushner’s private sector work was strictly for companies owned by his father, or ones he bought with his father’s money. Or that his most famous deal was the one in which he spent billions to acquire an aging midtown skyscraper on the eve of the financial crisis that became an albatross around the family business’s neck, before being conveniently bailed out by Qatar.

Last week Senator Elizabeth Warren said the Department of Justice should investigate the $2 billion Saudi investment. On Monday, the watchdog group Citizens for Responsibility and Ethics wrote on Twitter: “If people actually cared about corruption by the president’s family members, Saudi Arabia giving Jared Kushner $2 billion would be the biggest story in America right now.” A day prior, MSNBC host Mehdi Hasan tweeted that the investment represents a “huge story of both corruption and human rights abuses” that the media and others shouldn‘t just “move on” from. So yeah, it seems worth looking into!

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