Jared Kushner’s Affinity Partners Acquires 8% Stake in OakNorth
Discover how Jared Kushner’s Affinity Partners’ 8% investment in UK digital lender OakNorth signals a bold fintech move, fueling OakNorth’s US expansion and reshaping transatlantic financial ties.
Key Takeaways
- Affinity Partners acquires 8% stake in OakNorth
- OakNorth’s 2024 pre-tax profits hit £214.8 million
- OakNorth targets US growth via Community Unity Bank deal
- Affinity Partners backed by Qatar and Saudi sovereign funds
- Deal highlights rising US-European fintech investment ties
When Jared Kushner’s private equity firm, Affinity Partners, stepped into the fintech spotlight by acquiring an 8% stake in UK digital lender OakNorth, it wasn’t just another investment headline. This move, reported by Sky News in August 2025, marks a strategic fusion of global capital and digital banking innovation. OakNorth, known for its tech-driven lending to small and medium-sized businesses, is on a growth trajectory underscored by £214.8 million in pre-tax profits in 2024. With ambitions to expand aggressively into the US market, including acquiring Michigan’s Community Unity Bank, OakNorth’s partnership with Kushner’s firm backed by Middle Eastern sovereign wealth funds signals a new chapter in cross-Atlantic fintech collaboration. Here’s how this deal reshapes the financial landscape and what it means for investors and innovators alike.
Unpacking Affinity Partners’ Stake
Affinity Partners, the private equity firm founded by Jared Kushner in 2021, has made a notable splash by acquiring an 8% stake in OakNorth, a British digital lender. This isn’t just a random purchase; it’s a calculated move backed by billions in assets and capital from heavyweight international sources, including the sovereign wealth funds of Qatar and Saudi Arabia. Imagine a well-oiled investment machine, fueled by global money and Kushner’s network, stepping into the fintech arena with a clear mission: to back innovation that fosters economic opportunity and stability.
This stake acquisition, reported by Sky News in August 2025, involves buying shares from an undisclosed existing investor. While the exact valuation remains under wraps, OakNorth’s last known valuation in 2019 was $2.8 billion, and given its growth, it’s likely higher now. This deal not only injects fresh capital into OakNorth but also positions Affinity Partners as a key player influencing the bank’s strategic direction. It’s a classic example of private equity’s growing role in shaping fintech’s future.
Exploring OakNorth’s Fintech Edge
OakNorth stands out in the fintech crowd as a digital lender laser-focused on small and medium-sized businesses (SMEs). Founded by Rishi Khosla in the UK, the bank leverages technology to deliver credit solutions that traditional banks often overlook or handle sluggishly. In 2024, OakNorth reported pre-tax profits of £214.8 million, up from £187.3 million the previous year, alongside issuing over £2.1 billion in new loans. These numbers tell a story of a fintech firm not just surviving but thriving amid fierce competition.
What makes OakNorth’s story compelling is its blend of tech innovation and targeted lending. SMEs are the backbone of many economies, yet they often face credit hurdles. OakNorth’s tech-powered approach offers a lifeline, speeding up loan approvals and tailoring credit to business needs. This focus has earned it a reputation as a leading digital lender in the UK, setting the stage for its next big leap: the US market.
Driving OakNorth’s US Expansion
OakNorth’s ambitions stretch far beyond the UK. The bank is gearing up for substantial loan growth in the United States, a market ripe with opportunity but also complex regulatory terrain. A key milestone in this journey is OakNorth’s recent agreement to acquire Michigan-based Community Unity Bank (CUB) in an all-share deal. This move signals a bold push into American banking, leveraging CUB’s existing footprint to accelerate OakNorth’s US presence.
Affinity Partners’ investment plays a pivotal role here. Beyond capital, Kushner’s firm offers valuable connections and insights into North American financial markets. This partnership could smooth OakNorth’s path through regulatory hurdles and competitive challenges. For OakNorth, the US expansion isn’t just about growth; it’s about transforming from a UK fintech star into a transatlantic banking powerhouse.
Assessing Deal Implications
This deal carries weighty implications for all parties involved. For OakNorth, the infusion of capital strengthens its ability to fund larger and more diverse lending portfolios, crucial as it navigates the US market’s complexities. The backing of a politically connected investor like Kushner adds strategic guidance and international visibility, potentially attracting further high-profile investors.
Affinity Partners benefits by diversifying its portfolio with a stake in one of Europe’s prominent digital lenders. This foothold in fintech offers influence over OakNorth’s future strategy, aligning with the broader trend of private equity shaping digital banking innovation. The fintech sector itself gains a vivid example of cross-Atlantic investment flows, underscoring private equity’s rising role in fueling fintech’s global expansion.
Navigating Challenges and Context
Despite the excitement, this partnership faces hurdles. The deal’s valuation remains undisclosed, leaving analysts guessing about immediate financial impacts. OakNorth’s US ambitions will encounter rigorous regulatory scrutiny on both sides of the Atlantic, a complex dance requiring careful navigation.
Moreover, Affinity Partners’ backing by Middle Eastern sovereign wealth funds adds a geopolitical layer, illustrating how fintech investments often intertwine with diplomatic interests. Kushner’s involvement brings a mix of reputation boosts and scrutiny, given his political legacy. This deal is a microcosm of fintech’s globalization—where capital, innovation, politics, and regulation intersect in a high-stakes game shaping the future of banking.
Long Story Short
This 8% stake acquisition by Affinity Partners is more than a financial transaction—it’s a strategic handshake across continents, blending Kushner’s global investment ambitions with OakNorth’s fintech prowess. For OakNorth, the deal strengthens its capital base and opens doors to the complex US market, backed by a politically connected investor. Affinity Partners diversifies into a thriving European digital lender, gaining influence in fintech’s fast lane. Yet, behind the excitement lie challenges: undisclosed valuations and regulatory hurdles in two major economies. Still, this partnership embodies the evolving narrative of fintech’s globalization, where private equity and sovereign wealth funds play starring roles. For investors watching the fintech frontier, it’s a vivid reminder that innovation and capital flow are entwined, shaping the future of banking across borders. The relief of a funded expansion plan and the promise of new markets make this a story worth following closely.