Jared Kushner’s firm buys 8% stake in UK lender OakNorth, Sky News reports

Affinity Partners, a private equity firm founded by Jared Kushner and backed by Middle Eastern funds, is acquiring an 8% stake in British lender OakNorth, Sky News reported. OakNorth, a SoftBank-backed fintech, reported nearly £215 million in pretax profit last year and is actively expanding its operations into the U.S. While the transaction value remains undisclosed, OakNorth was previously valued at around $2.8 billion in 2019, highlighting private equity's interest in profitable, growing cross-border fintech opportunities.

Analysis

Affinity Partners, a private equity firm with backing from Middle Eastern sovereign funds, is acquiring an 8% stake in the profitable, SoftBank-backed UK fintech lender OakNorth. This transaction, conducted with an unidentified existing investor, signals continued private market interest in mature fintech assets despite an unclear transaction value. OakNorth has demonstrated strong fundamentals, reporting nearly £215 million in pretax profit last year and holding over £7.5 billion in assets. The company's strategic focus is on expansion into the United States, where it began operations in mid-2023 after securing a representative office license in New York. This move follows a 2019 funding round that valued the lender at approximately $2.8 billion. The company's CEO has issued a bullish outlook for 2025, citing continued growth even amidst macroeconomic challenges, underscoring the firm's confidence in its specialized business lending model.

Key Decisions for Investors

• Investors in publicly traded fintechs and commercial banks should view this as a validation of the tech-enabled lending model and monitor for increased competition in the U.S. market from well-capitalized private firms like OakNorth.
• For limited partners and investors tracking the private equity space, this secondary stake sale highlights a viable path for liquidity in late-stage venture-backed companies and may signal that OakNorth is positioning itself for a potential future IPO.
• Given OakNorth's strong profitability and bullish guidance, investors should consider this a positive data point for the health of the specialized SME lending sector, suggesting resilience and growth potential despite broader economic headwinds.