Jared Kushner has played a key role in US diplomacy over the war in Gaza while his private equity firm, Affinity Partners, holds the largest stake in Phoenix Financial, an Israeli investment group with holdings in companies involved in supplying Israel’s military, according to a CNN investigation.
Affinity roughly doubled its stake in Phoenix shortly before Donald Trump returned to the White House, making it Phoenix’s largest shareholder. The firm owns 7.4 percent of Phoenix, a stake worth more than $1 billion as of July. That month, Affinity sold a quarter of its Phoenix stake for more than $340 million, generating a return of more than five times its initial stock purchase.
CNN used Israeli financial filings to trace part of Phoenix’s holdings and identified investments in at least nine companies providing equipment or services to Israel’s military. The largest is Elbit Systems, Israel’s biggest arms manufacturer, in which Phoenix has a stake worth at least $265 million. Phoenix also holds stakes in Next Vision, Reshef Technologies, Israel Shipyards and Ashot Ashkelon, as well as smaller investments in Boeing and Caterpillar.
Several of the companies have reported increased demand or business during the war.
Kushner’s attorney told CNN that he has never participated in or directed Phoenix’s investment decisions and had no involvement in the decision to purchase, hold or sell any of the nine companies. The attorney also said any suggestion that Kushner’s diplomatic work influenced Phoenix’s investments, or vice versa, was incorrect.
Kushner has nevertheless described maintaining a close relationship with Phoenix. He told Forbes last year that he maintained “a very active dialogue” with the financial group and met with its leadership every few weeks. His attorney confirmed that he regularly spoke with Phoenix management about the company, broader market trends and potential strategic opportunities, although those interactions had significantly decreased as he became more involved in diplomatic efforts.
Kushner began acting as an unofficial adviser to Trump in May 2025 as the Gaza war intensified. He worked alongside Middle East envoy Steve Witkoff and became involved in negotiations with Israeli and regional leaders. In October last year, Trump sent Kushner to Sharm El-Sheikh, Egypt, to help seal the Gaza ceasefire deal.
Kushner has also openly discussed the connection between his business interests and his approach to diplomacy. He has argued that business relationships can bring Israelis and Arabs together, and said his Gulf investors had begun seeing potential benefits from ending regional wars.
He has also promoted plans for rebuilding Gaza, including a “coastal tourism” zone and an airport, describing “amazing investment opportunities” in the territory.
Critics cited by CNN have questioned the combination of Kushner’s financial interests and his unofficial diplomatic role. Cynthia Brown, chief ethics counsel for Citizens for Responsibility and Ethics in Washington, said people who profit from government policies should not also be involved in making those policies.
The White House rejected concerns over a potential conflict of interest, saying Kushner’s business activities have nothing to do with his diplomatic engagements, which he conducts voluntarily at Trump’s request. Kushner’s attorney similarly rejected any connection between his diplomatic work and Phoenix’s investments.
Because Affinity is a private company, it is not required under US law to disclose where it invests. Kushner revealed in March that Affinity had made 28 investments, but the size of its Phoenix investment relative to the rest of its portfolio remains unclear.
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