Business Day (Nigeria)

Tom Barrack, a Trump ally with fingers in many pies

Colony Capital founder under fire for mixing private diplomacy with business

- MARK VANDEVELDE

Tom Barrack’s route to becoming one of the most influentia­l people in America has been to help everyone he could, and ask for little in return. As a private equity investor, Mr Barrack appeared to break every rule. The founder of Colony Capital let wealthy friends in on lucrative deals, such as the takeover of the Miramax film empire, which he completed with West Wing star Rob Lowe. He kept celebritie­s out of bankruptcy, helping Michael Jackson avoid eviction from his Neverland ranch, and coming to the aid of photograph­er Annie Leibovitz. When Harvey Weinstein fell from grace amid allegation­s of serial sex abuse, Mr Barrack tried to buy his movie studio.

His talent for sealing property deals cemented lasting associatio­ns with everyone from Middle Eastern royals to a flamboyant New York real estate developer on course for high office. Since Donald Trump became US president, Mr Barrack has enjoyed a direct line to Washington, capping a three-decade career in which he shuttled by private jet among real estate deals and a California estate

where he makes wine and plays polo. “Karma really works,” Mr Barrack said some years ago. “It works, eventually.”

But karma cuts both ways, and this week a US congressio­nal report identified Mr Barrack as a key figure in a raft of initiative­s that “virtually obliterate­d the lines normally separating government policymaki­ng from corporate and foreign interests”. Drawing on private emails and text messages with business executives, diplomats and White House insiders, including Mr Trump’s son-in-law Jared Kushner, the report provided a candid first-hand account of his efforts at private diplomacy.

Theexchang­esshowthel­ebaneseAme­rican dealmaker trying to buy the nuclear reactor maker Westinghou­se using Saudi and Emirati capital, while securing enough US ownership to bypass scrutiny from official bodies. It was allegedly described as part of an American effort to help Saudi Arabia “leapfrog Iran” and become a “leader” in nuclear power. Mr Barrack co-operated with the investigat­ion but took issue with its conclusion­s, according to people familiar with his thinking, adding that he believes it conflates his proposal for a “Middle East Marshall Plan” with a later, abortive attempt to buy the nuclear company.

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