Based on research from The Intercept, Saudi Arabia has been revealed as an investor in the private company that controls the software which powers Democratic candidates in the United States, including management of the Democratic National Committee's crucial voter list.
The revelation has led to concerns that the Saudi government could interfere in domestic politics by investing in the companies responsible for campaign tech apparatus, EveryAction, and NGP VAN.
Sanabil Investments, which manages Saudi Arabia's sovereign wealth fund, disclosed that it has invested in Apax Partners and Insight Partners, two private equity firms involved in selling and acquiring EveryAction and NGP VAN. The disclosure marks the first list of investments in venture capital, buyout firms, and startups by Sanabil.
The Intercept discovered that Sanabil is invested in Apax Partners, which acquired NGP VAN and EveryAction in August 2021. Insight Partners, another venture capital and private equity firm that invested in EveryAction in 2018 and sold parts of the company to Apax in 2021, is also listed as a Saudi partner.
Vista Equity Partners, which sold assets to Apax as part of the 2021 acquisition, is another company listed as a Saudi partner. The other recent Saudi investments disclosed are Blackstone, Apollo Global Management, and Andreessen Horowitz.
With $620 billion in assets, the Public Investment Fund is one of the world's most significant sovereign wealth funds and the official name for Saudi Arabia's sovereign wealth fund. Federal regulations are designed to prevent sovereign wealth funds from interfering in domestic politics.
The Committee on Foreign Investment in the United States under the Department of the Treasury can force the transaction undone if a particular investment poses a national security risk.
Investment in a company that handles voting and politics data could potentially threaten national security, even if the investor has no real influence over the relevant data. The committee may require the fund to use a mitigation agreement that limits interactions with the portfolio company. It is worth noting that the committee is quiet about its work and generally responsive to potential threats.
According to The Intercept, despite the potential risk, Sanabil's investment in EveryAction and NGP VAN does not necessarily mean that the Saudi government is interested in the companies' functions.
Progressive strategist Gabe Tobias argues that the disclosure is instead a further indication that the fate of EveryAction and NGP VAN is not a priority for their owners and that Apax's focus on all the holdings could lead to the downgrading of services that NGP provides to political campaigns.
Sanabil's disclosure, which is more akin to a venture capital press release than an investment disclosure by a sovereign wealth fund, leaves many questions unanswered.
However, Paul Rose, an associate dean at the Ohio State University's law school, suggests that the disclosure is part of Sanabil's strategy to brand itself and signal to people in its own country and abroad what its priorities are.
He argues that "investment for them is in part a brand-building exercise." While the disclosure could signal the fund's ability to pick good assets, Rose notes that it is hard to know what else they could be trying to signal.
The Saudi investment in the companies responsible for the Democratic campaign tech apparatus has raised alarm bells among some. The fate of EveryAction and NGP VAN is of significant importance to the Democratic Party and progressive organizations, and some fear that the investment by Sanabil could potentially lead to interference in domestic politics.
While federal regulations are designed to prevent such interference, the nature of the investment in companies that handle data related to voting and politics could pose a threat to national security. The Committee on Foreign Investment in the United States is responsible for assessing such risks and taking appropriate action.
Despite the potential risks, Sanabil's investment in EveryAction and NGP VAN does not necessarily mean that the Saudi government is interested in the companies' functions.
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