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Senate Investigation Raises Concerns Over Jared Kushner’s Equity Fund

An inquiry spearheaded by Senator Ron Wyden, the chair of the Senate Finance Committee, has unveiled what he perceives as alarming indicators related to Jared Kushner’s equity fund. Over the past three years, Kushner’s firm, Affinity Partners, has reportedly attracted billions from international investors while amassing more than $100 million in fees. However, Wyden notes in a written communication to Affinity that during this period, the firm has not returned any earnings to its clients. This situation has amplified longstanding suspicions that the fund may serve as a mechanism for foreign governments to influence a potential future Trump administration.

In his letter to Affinity, Wyden expressed concern over the motivations of the fund’s investors, suggesting that they might be more interested in advancing their political agendas than engaging in legitimate business ventures. “Affinity’s investors may not be motivated by commercial considerations but rather the opportunity to funnel foreign government money to members of President Trump’s family,” Wyden stated. He further raised alarm over the firm’s high fees and its slow pace of deploying capital, which he argues could symbolize an elaborate scheme to bypass regulations such as the Foreign Agents Registration Act.

Responding to these allegations, Chad Mizelle, who serves as the chief legal officer for Affinity Partners, firmly rejected any claims of impropriety or legal noncompliance from the fund.

Senator Wyden’s concerns are particularly pertinent in light of recent findings reported by The New York Times. The publication revealed that a staggering 99% of the $3 billion raised by Kushner’s fund has originated from foreign investors, with the majority coming from the Saudi government’s Public Investment Fund. Notably, analysis from PitchBook, a private equity research organization, indicates that most firms in the industry typically return some profits within a period of 2.5 years.

The fact that Kushner’s fund has yet to distribute any earnings raises a valid set of questions regarding its operational integrity, especially when considered alongside its controversial history. Reports dating back to 2022 highlighted numerous anxieties from a Saudi screening panel regarding its investment in Kushner’s nascent venture. Faced with concerns over the inexperience of the fund’s management, inadequate due diligence, inflated fee structures, and public relations risks due to Kushner’s former advisory role under President Trump, the panel detailed reservations that seemingly warranted caution.

Despite the panel’s array of highlighted concerns, Saudi Crown Prince Mohammed bin Salman opted to invest a considerable $2 billion in the fund. Observers noted that such a substantial and seemingly reckless investment ignited speculations regarding potential ulterior motives, including a desire to take advantage of Kushner’s connections and influence following the Trump administration. Reports indicated that Kushner and MBS fostered a close relationship during Trump’s tenure, with Kushner even standing up for the Crown Prince in the aftermath of the assassination of journalist Jamal Khashoggi.

The motivations behind the substantial Saudi investment prompt a critical inquiry: Could MBS perceive this as a strategic move to secure favor in anticipation of a future Trump-led administration? Kushner has suggested that any delays in deploying funds have been driven by market conditions. Nonetheless, this context cannot completely eliminate the possibility of an informal quid pro quo dynamic at play. His fund may represent a channel through which Middle Eastern investors express their allegiance to Kushner and, by extension, to former President Trump.

While Kushner has indicated he will not take a formal role in another Trump administration, he remains influential within the family structure and retains the ability to advise Trump informally. This raises further implications, considering that Kushner’s venture continues to operate as a potential conduit for foreign governments to subtly influence U.S. policies. The fund’s unusual operational patterns may lead to perceptions of it acting as a de facto laundering mechanism for foreign interests. To alleviate such concerns, it would have been prudent for Kushner to steer clear of business dealings with foreign investors, particularly from nations he formerly worked with in an official capacity. Instead, he has opted to capitalize on these connections, raising troubling questions about the impact of these financial ventures on the integrity of American democracy.

This article was originally published on MSNBC.com.

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