11:42 am - February 23, 2025
In December, Jared Kushner provided a sneak peek into the next big move for his private equity firm, Affinity Partners, during a podcast interview with Patrick O’Shaughnessy. He revealed that Affinity was on the brink of a significant investment in one of Mexico’s leading infrastructure companies, a deal that had been in the works for 18 months. Kushner highlighted Mexico’s growing appeal due to the near-shoring trend—where U.S. companies move production and operations closer to home instead of relying on distant markets like Asia. He described this shift as a promising opportunity for Mexico, emphasizing the benefits of aligning with U.S. policies under President Donald Trump. However, just days later, Trump’s announcement of 25% tariffs on Mexican goods—though temporarily paused for 30 days— threw a wrench into Kushner’s plans, causing the deal to stall until the trade uncertainty subsides. Kushner has consistently expressed his support for Trump’s economic agenda, viewing it as a positive long-term strategy for Mexico, despite the immediate challenges it presents.
The tariffs have also raised concerns about a potential conflict of interest, as Trump’s decision directly impacts Kushner’s business dealings in Mexico. While Kushner has stressed his loyalty to Trump and believes the president’s focus on U.S.-Mexico trade benefits Mexico in the broader scheme of things, critics argue that the incestuous relationship between Trump’s decisions and Kushner’s investments creates an ethical gray area. The uncertainty surrounding the trade agreement, which has been a key focus for Kushner during his time in the White House, highlights the risks inherent in investing in a politically volatile environment.
The near-shoring trend, which has been gaining momentum over the past few years, is a central theme of Kushner’s investment strategy. By moving manufacturing and production to Mexico, companies can reduce costs and optimize supply chains while still catering to the U.S. market. Mexico has become the United States’ largest trading partner, and the near-shoring trend has strengthened economic ties between the two countries. However, the imposition of tariffs threatens to slow this trend, putting at risk the very economic partnership that Kushner is trying to leverage. The U.S. tariffs on Mexico, while temporary, could lead to reprisals from Mexico, as its president has already announced plans to impose retaliatory measures. These trade disputes could frustrate efforts to maintain the smooth flow of goods and investment between the two nations.
Kushner’s ties to Mexico date back to the first Trump administration, where he played a pivotal role in negotiating the U.S.-Mexico-Canada Agreement (USMCA), a trade deal that was originally threatened by Trump and ultimately signed in 2018. For his efforts, Kushner was even recognized with the prestigious “Aztec Eagle” award by the Mexican government. His relationship with Luis Videgaray, a key Mexican official, began during this period and has endured, with Videgaray later joining Affinity Partners to lead its artificial intelligence initiatives in 2023. Kushner’s connections in Mexico were instrumental in paving the way for Affinity’s upcoming investment, and his long-standing relationships suggest a deeper understanding of the local political and economic landscape.
Away from Mexico, Affinity Partners has been actively expanding its global reach, investing in at least eight countries to date. The firm, which Kushner founded in 2021 after leaving the White House, has raised significant capital from investors in the Middle East, including the Saudi sovereign wealth fund and other high-profile figures from the United Arab Emirates. Affinity’s investments have spanned diverse industries, from fast-food franchises in Brazil to fitness technology startups in Germany. Kushner’s ambitious vision for the company has also seen it undertake high-profile projects like a $1.5 billion luxury resort in Albania and a $500 million Trump-branded luxury hotel in Serbia. These deals have not only bolstered Affinity’s growth but also reinforced Kushner’s reputation as a shrewd and well-connected investor.
Despite its global ambitions, Mexico represents a new frontier for Affinity Partners. The company’s investment in a leading Mexican infrastructure firm marks a strategic move to diversify its portfolio and tap into a rapidly growing market. The deal aligns with Kushner’s padrino-like approach to investing, which often involves leveraging political connections to secure lucrative opportunities. As the U.S.-Mexico trade relationship continues to evolve, Kushner’s ability to navigate the political and economic complexities will be crucial to the success of this and other ventures.
In the meantime, Affinity’s recent fundraising efforts have given it the financial momentum to pursue ambitious new projects. In December, Kushner announced that the firm had raised an additional $1.5 billion, bringing its total assets to $4.6 billion and valuing it at $200 million. This fresh capital will undoubtedly help Kushner and his team as they navigate the challenges of the U.S.-Mexico trade dispute and other global market uncertainties. As Affinity continues to expand its reach, the success of its Mexican investment will be closely watched not only for its financial returns but also for its potential to foster economic collaboration between the two neighboring nations.