Affinity Partners, the private equity firm founded by Jared Kushner in 2021, has agreed to acquire an 8% stake in UK-based digital bank OakNorth from an undisclosed existing investor, according to SkyNews.

The deal, expected to close in the coming weeks, marks a significant private equity investment in one of Britain’s most prominent digital lenders, which is targeting rapid expansion in the US. 

OakNorth began lending in the US in 2023 and has already issued around $1.3bn in loans. Earlier this year, it agreed to acquire Michigan-based Community Unity Bank in an all-share transaction pending regulatory approval.

Founded in 2015 by Rishi Khosla, OakNorth has lent approximately £12.5bn, maintains an industry-leading low default rate, and reported pre-tax profits of £214.8m in 2024, up from £187.3m the year before. The bank counts SoftBank, Singapore’s GIC, and Toscafund among its backers and is chaired by former UK financial regulator Lord Turner.

While financial terms of the Affinity deal were not disclosed, OakNorth was valued at $2.8bn in its last funding round in 2019. Market observers expect the lender could pursue a stock market listing in the next few years, with New York a likely venue given its US growth ambitions.

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