Friday • 2hr 54min

Jared Kushner - The Mechanic - [Invest Like the Best, EP.402]

Invest Like the Best with Patrick O'Shaughnessy

Jared Kushner has had multiple successful careers across real estate, media, government, and now private equity. As Senior Advisor to President Trump, he played key roles in initiatives like the Abraham Accords, criminal justice reform, and Operation Warp Speed. He now runs Affinity Partners, a private equity firm leveraging his unique experience across business and government to find distinctive investment opportunities globally.

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Key Takeaways

Problem-solving mindset: Kushner approaches challenges by asking "what is God trying to teach me?" and focuses on what can be controlled rather than dwelling on setbacks
Deal-making philosophy: Focus on creating win-win situations and understanding counterparties' true interests rather than relying on threats or leverage
Investment principles at Affinity Partners: - Look for big macro trends that can lift industries - Back exceptional people and teams - Focus on businesses with structural advantages/moats - Have a clear "why us?" rationale for each investment
Middle East strategy: Focus on mutual future interests and economic development rather than relitigating historical conflicts
Government efficiency: Career civil servants need clear objectives and empowerment; current incentive structures discourage innovation and cost-cutting

Introduction

Jared Kushner has had multiple successful careers across real estate, media, government, and now private equity. As Senior Advisor to President Trump, he played key roles in initiatives like the Abraham Accords, criminal justice reform, and Operation Warp Speed. He now runs Affinity Partners, a private equity firm leveraging his unique experience across business and government to find distinctive investment opportunities globally.

Topics Discussed

Early Real Estate Career and Learning Experiences (13:38)

Kushner discusses his experience acquiring 666 Fifth Avenue for $1.8B in 2007, just before the financial crisis. Despite challenging market conditions and pressure from creditors, he was able to salvage the investment through creative deal-making and focusing on win-win solutions.

Key learning: Focus on next deal rather than last dollar
Approach to creditors: Be transparent about challenges and align incentives
Importance of timing: Right thesis but wrong timing/capital structure can doom deals
Value of relationships: Built trust with key players like Tom Barrack through honest communication

Investment Philosophy at Affinity Partners (47:53)

Kushner outlines the investment approach at his current firm Affinity Partners, which combines traditional investing expertise with geopolitical navigation capabilities.

Four key principles: - Identify major macro trends - Back exceptional people/teams - Look for structural advantages - Have clear "why us?" rationale
Focus areas: Global platforms and problem-solvers that can make long-term impact
Capital partners: Major sovereign wealth funds from Saudi Arabia, UAE, Qatar
Deal approach: Typically co-invest with other firms in complementary way

Middle East Peace Efforts and Diplomacy (30:04)

Kushner shares his experience working on Middle East peace initiatives and the Abraham Accords, emphasizing the importance of listening and building trust with regional leaders.

Key insight: Focus on mutual future interests rather than historical grievances
Approach: Asked questions and listened rather than dictating terms
Economic focus: Emphasized business/investment opportunities over military solutions
Trust building: Maintained confidentiality of sensitive discussions to build relationships

Operation Warp Speed and Crisis Management (1:14:33)

Discusses leading Operation Warp Speed during COVID-19 pandemic, highlighting approach to solving complex problems under extreme pressure.

Key constraints: Imagination, money, and gravity (physical limitations)
Team building: Brought in diverse experts from private sector
Execution focus: Broke down problems step by step rather than being overwhelmed
Innovation: Manufactured multiple vaccine candidates simultaneously to save time

Government Efficiency and Reform (1:21:29)

Shares perspectives on improving government efficiency and bringing business mindset to public sector.

Current challenges: Lack of incentives for efficiency and cost-cutting
Reform approach: Need clear objectives and empowerment for civil servants
Private sector lessons: Apply business principles while respecting unique aspects of government
Leadership needs: More business leaders willing to serve in government

Future of Media and Information (2:50:16)

Reflects on experience owning New York Observer and current media landscape.

Key trends: Rise of podcasts as powerful medium
Social media impact: Twitter/X becoming primary news source
Traditional media challenges: Print business model increasingly difficult
Future opportunity: Help people navigate quality information overload

Conclusion

The conversation provides deep insights into Kushner's problem-solving approach across multiple domains - from real estate deals to Middle East peace negotiations to government reform. His focus on understanding counterparties' interests, building trust through transparency, and maintaining a learning mindset has enabled success across varied challenges. The discussion also highlights his current work at Affinity Partners, which aims to leverage this unique set of experiences to find distinctive global investment opportunities.

The interview demonstrates how similar principles - focusing on win-win outcomes, building trust, and maintaining a long-term orientation - can be successfully applied across business, government, and diplomacy. Kushner's experiences offer valuable lessons for leaders working to drive change in complex environments while building sustainable relationships and institutions.