Affinity Partners, which has become the largest shareholder in Israel-based financial group Phoenix Financial, operates as a private equity firm wholly owned by Jared Kushner. Phoenix Financial invested at least $456 million in nine companies linked to military suppliers, including $265.1 million invested in Elbit Systems, Israel’s largest arms manufacturer.
Affinity Partners doubled its stake in Phoenix Financial in January 2025. The transaction took place shortly before Donald Trump assumed the presidency. Kushner later described Phoenix Financial as Affinity Partners’ best investment.
Affinity Partners sold part of its stake
In July, Affinity Partners sold a quarter of its shares in Phoenix Financial for more than $340 million. The proceeds from the sale exceeded five times the company’s initial acquisition cost for its stake in Phoenix Financial.
Despite the sale, the company retained a stake in Phoenix Financial worth more than $1 billion.
Kushner’s diplomatic role and investments
Kushner, who does not hold an official government position, worked as a volunteer adviser at Trump’s request and served as one of the United States’ key negotiators on Gaza. Because of this status, he is not required to disclose his financial assets.
Kushner’s lawyer said his client did not direct Phoenix Financial’s investment decisions. The lawyer also said Kushner had no role in the investments in nine companies linked to military firms.
White House spokesperson Anna Kelly said there was no connection between Kushner’s personal business activities and the diplomatic duties he carried out voluntarily at the president’s request. There was no finding that the investments under review had been directly influenced by Kushner’s diplomatic activities.
Ongoing humanitarian crisis in Gaza
Israel’s attacks on Gaza began in October 2023. More than 74,000 people have been killed and more than 175,000 injured in the conflict, while widespread destruction has occurred across the territory.
Despite a ceasefire agreement reached in October 2025, attacks on Gaza continued. Restrictions on the entry of food, medicine and shelter supplies into the territory remained in place, while nearly the entire population faced severe humanitarian conditions.
According to CNN, Affinity Partners invested $128.5 million in Phoenix Financial in 2024 and doubled its stake five days before Trump took office. Phoenix’s defense-linked investments include $68 million in military drone camera maker Next Vision, $55 million in fighter jet engine maker Bet Shemesh Engines and $40 million in Reshef Technologies, which makes electronic fuzes for artillery shells. Affinity’s remaining 7.4% stake in Phoenix is valued at more than $1 billion.
