CFIUS Review Process

The Committee on Foreign Investment in the United States (CFIUS) is an interagency committee authorized to review certain foreign investments in US businesses and real estate to determine their impact on US national security.

When is Kuwaiti Capital Implicated?

CFIUS jurisdiction was vastly expanded by the FIRRMA act in 2018. It now covers not just controlling investments, but also non-controlling investments in US businesses involved in TID (Technology, Infrastructure, Data).

• Critical Technology: Investing in a US startup developing AI, quantum computing, or semiconductors.
• Critical Infrastructure: Taking a stake in a US port, energy facility, or telecom network.
• Sensitive Personal Data: Acquiring a US company that holds financial or health data of US citizens.
• Real Estate: Purchasing real estate in close proximity to sensitive US military installations or ports.

The Mandatory vs. Voluntary Filing

In certain TID transactions, filing with CFIUS is mandatory. Failure to file can result in penalties up to the value of the transaction. Even if not mandatory, filing a voluntary declaration can secure a "safe harbor" letter, preventing CFIUS from unwinding the deal post-closing.

Kuwait USA Capital engages specialized regulatory counsel early in the deal lifecycle to assess CFIUS risk and structure LPs to avoid triggering mandatory filings where possible.