Jared Kushner’s Miami-based investment firm, Affinity Partners, has acquired a major stake in Israeli investment firm Phoenix Financial, which holds significant positions in local defense contractors supplying the Israeli military, according to a report by CNN. The transaction and subsequent rise in defense asset values have intensified public scrutiny regarding Kushner’s dual role as a private financier and an unofficial Middle East peace envoy for Donald Trump.
Financial Ties to Middle Eastern State Funds
Following the conclusion of Donald Trump’s first presidential term on January 20, 2021, Jared Kushner established Affinity Partners as its sole owner. Months later, Saudi Arabia’s Public Investment Fund, led by Crown Prince Mohammed bin Salman, injected approximately 20 billion Norwegian kroner into the firm. Additional capital followed from Qatar and the United Arab Emirates.
In 2023, Affinity made its initial investment in Israel. By 2024, the firm secured nearly 5 percent of Phoenix Financial, one of Israel’s largest investment houses. Shortly before Donald Trump’s second presidential inauguration, Affinity doubled its stake in Phoenix, establishing itself as the company’s largest shareholder. Kushner stated to Bloomberg in July 2024 that the acquisition was rooted in his belief in Israel’s resilience.
Investments in Israeli Defense Manufacturers
Phoenix Financial holds substantial equity in several key Israeli military suppliers. These holdings include Elbit Systems, the country’s largest defense contractor, which manufactures artillery shells and bombs for the Israeli army. Elbit Systems’ share value has climbed 165 percent since military operations began in Gaza three years ago.
Additional Phoenix portfolio holdings include Next Vision, a producer of cameras utilized on attack drones, and Reshef Technologies, a manufacturer of detonators for artillery shells. As the primary shareholder in Phoenix Financial, Affinity Partners benefits financially from the valuation growth of these defense sector assets amidst ongoing conflicts across Gaza, the West Bank, Lebanon, Syria, and Iran.
Political Envoy Status and Lack of Disclosure
Kushner has resumed operating as an unofficial Middle East peace envoy for President Donald Trump without holding a formal government title. Because he serves in a voluntary capacity, federal law does not require him to publicly disclose his private finances or portfolio holdings through Affinity Partners.
CNN reviewed Israeli corporate registries to identify localized investments, noting that additional undisclosed holdings likely exist. Kushner has previously addressed the convergence of his commercial and diplomatic pursuits, remarking in a podcast that when business opportunities bring Arabs and Israelis together, they set aside other disputes.
Lawmakers Scrutinize Kushner Development Proposals for Gaza
Amidst ongoing military campaigns, Kushner advanced a large-scale development blueprint titled “The New Gaza” during the World Economic Forum in Davos, presenting plans for 180 skyscrapers, an industrial zone, and an airport as investment opportunities. Critics argue these proposals conflict directly with his diplomatic mandate.
Democratic Representative Jamie Raskin of the House Judiciary Committee termed Kushner’s simultaneous commercial activities and diplomatic role “fullstendig uforenlig og uetisk” (completely incompatible and unethical) and announced plans for a congressional investigation. Conversely, Trump spokesperson Anna Kelly defended the arrangement to CNN, stating that Kushner’s private business operations are entirely separate from his voluntary diplomatic engagements.
Frequently Asked Questions About Jared Kushner’s Israeli Investments
How much money did Saudi Arabia invest in Affinity Partners?
Saudi Arabia’s sovereign wealth fund, led by Crown Prince Mohammed bin Salman, invested approximately 20 billion Norwegian kroner into Jared Kushner’s firm shortly after its establishment in 2021.
What percentage does Affinity Partners own in Phoenix Financial?
Affinity Partners secured nearly 5 percent of Phoenix Financial in 2024 and doubled that stake just before the start of Donald Trump’s second presidential term, making it the company’s largest shareholder.
Which defense contractors are linked to Phoenix Financial?
Phoenix Financial holds equity in Elbit Systems, which manufactures bombs and artillery shells, as well as Next Vision and Reshef Technologies.
Why is Jared Kushner exempt from federal financial disclosures?
Because Kushner operates as an unofficial, voluntary envoy without a formal position in the presidential administration, U.S. law does not require him to publicly disclose his private financial assets through Affinity Partners.
Did You Know?
Elbit Systems’ share value has increased by 165 percent over the three years since military operations commenced in Gaza, directly boosting the valuation of funds managed by major institutional shareholders like Phoenix Financial.
The House Judiciary Committee has committed to initiating a formal congressional inquiry into the dual commercial and diplomatic activities of Jared Kushner.