The Decline of Kushner-Backed Investment Vehicles: A Cautionary Tale for Investors

The once-lucrative ventures tied to Jared Kushner's Affinity Partners and affiliated entities are increasingly showing signs of strain, raising critical questions for investors who have long relied on political connections and high-profile hype to justify risk. From Oscar Health's faltering financials to QXO's catastrophic paper loss and the contentious Paramount-Warner Bros. Discovery bid, these cases underscore a broader trend: the erosion of value in Kushner-backed investments as market realities outpace strategic narratives.

Oscar Health: A Cautionary Tale of Eroding Momentum

Oscar Health, a health-insurance startup once hailed as a disruptor, has struggled to maintain its growth trajectory. In Q3 2025, the company reported a net loss of $0.53 per share, with expenses of $3.11 billion outpacing revenue of $2.99 billion. Its medical loss ratio rose to 88.5%, driven by higher morbidity costs and a $130 million increase in risk adjustment accruals. Despite cost discipline reflected in a 17.5% SG&A expense ratio, the company posted an operational loss of $129.3 million for the quarter.

The stock price, which peaked at $23.80 in 2025, had fallen to $14.84 by December 23, a 34% decline. While Oscar Health reaffirmed its full-year revenue guidance of $12–12.2 billion, the widening gap between revenue and profitability signals a loss of momentum. This mirrors broader challenges in the health-insurance sector, where rising medical costs and regulatory pressures are squeezing margins. For investors, Oscar Health's struggles highlight the risks of overreliance on membership growth without commensurate cost controls.

QXO's $36 Billion Paper Loss: The Perils of Illiquid Hype

QXO Inc., a conglomerate with ties to Affinity Partners, offers a starker example of the dangers of speculative investing. In 2025, the company's stock plummeted from a June high of $290 to $11.25, erasing roughly $36 billion in paper value. This collapse followed a surge in liquidity as millions of previously restricted shares were unlocked through private placements, including a $150 million investment by Affinity Partners in July 2024.

The investment, priced at $9.14 per share, initially bolstered QXO's war chest to $5 billion, enabling acquisitions like Beacon Roofing Supply. However, the low float-just 0.1% of shares publicly traded before July 2024-created a fragile market structure. When liquidity increased, the stock's value collapsed under selling pressure, exposing the artificial inflation of its valuation. For investors, QXO's turmoil underscores the risks of investing in companies with minimal public float and opaque governance, particularly when tied to politically connected entities.

The Paramount Deal Fallout: Political Ties and Regulatory Scrutiny

The most recent chapter in Kushner's investment saga involves the contentious $108 billion hostile bid for Warner Bros. Discovery by Paramount. Affinity Partners initially participated in the deal but withdrew in December 2025, citing "changed dynamics" in the investment landscape. The bid, primarily funded by Middle Eastern sovereign wealth funds, drew sharp criticism from Democratic lawmakers over national security concerns and potential conflicts of interest.

Affinity's withdrawal, while not crippling the deal financially, amplified scrutiny of Kushner's role as a bridge between U.S. media and Gulf investors. Critics argue that the deal's reliance on foreign capital-particularly from entities linked to the Trump family business-raises ethical red flags. Meanwhile, President Trump's public advocacy for Paramount's bid, despite earlier antitrust criticisms of the company, has further muddied the waters. The fallout illustrates how political entanglements can complicate even the most ambitious financial strategies, eroding trust among both regulators and retail investors.

Broader Implications for Investors

These cases collectively reveal a pattern: Kushner-backed ventures are increasingly vulnerable to market forces that political connections and hype cannot offset. Oscar Health's operational losses, QXO's liquidity-driven collapse, and the Paramount deal's regulatory hurdles all point to a loss of credibility in these investments. For investors, the lesson is clear: fundamentals-profitability, governance, and sustainable growth-must take precedence over strategic narratives.

As the market continues to correct, the risks associated with these high-profile ventures will likely persist. Investors would be wise to approach Kushner-affiliated companies with heightened scrutiny, prioritizing transparency and financial resilience over the allure of political influence.