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Akbar Novruz

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Jared Kushner’s investment firm holds the largest stake in an Israeli financial group with hundreds of millions of dollars invested in companies supplying Israel’s military, raising questions about the overlap between his private financial interests and his role in US Middle East diplomacy, according to a CNN investigation.

Kushner, US President Donald Trump’s son-in-law, does not hold a formal government position but has played a prominent role in the administration’s diplomatic efforts in the Middle East, including negotiations concerning Gaza.

At the same time, his private equity firm, Affinity Partners, remains the largest shareholder in Phoenix Financial, one of Israel’s largest financial groups. CNN found that Phoenix holds investments worth more than $456 million in at least nine companies supplying military equipment to Israel.

The relationship is indirect: Affinity does not itself own stakes in the nine defense-linked companies identified by CNN. However, as a major Phoenix shareholder, Affinity can benefit financially from Phoenix’s overall performance.

Among Phoenix’s holdings is Elbit Systems, Israel’s largest defense manufacturer. CNN reported that Phoenix’s stake in Elbit forms part of its broader portfolio of defense-related investments, which also includes companies supplying warships, tank components and electronic fuses used in artillery shells.

The financial relationship dates to July 2024, when Affinity acquired a stake in Phoenix Financial. In January 2025, shortly before Trump returned to the White House, Affinity doubled its investment and became Phoenix’s largest shareholder.

Affinity itself has received substantial financial backing from Middle Eastern investors. CNN reported that funding came from Saudi Arabia and later from Qatar and the United Arab Emirates. This means Gulf capital invested through Affinity is indirectly exposed to Phoenix, whose portfolio includes Israeli defense companies.

The overlap has attracted particular attention because Kushner has simultaneously played a diplomatic role in conflicts involving Israel.

By October 2025, he was publicly involved in ceasefire negotiations between Israel and Hamas and later worked on Trump’s Gaza peace plan while Affinity retained its Phoenix investment.

CNN also reported that Affinity sold approximately one-quarter of its Phoenix stake in July 2026 for more than $340 million, representing a return of more than five times its original investment. Despite the sale, Affinity remained Phoenix’s largest shareholder.

Kushner’s representatives have rejected suggestions that he influences Phoenix’s investment decisions.

An attorney for Kushner told CNN that he is not a member of Phoenix’s board, has never held a management position at the company and does not participate in decisions about where Phoenix invests.

CNN reported, however, that Kushner previously described maintaining an active dialogue with Phoenix executives and meeting with its team regularly. His attorney acknowledged those contacts but said Kushner has significantly reduced his interaction with Phoenix management since becoming more heavily involved in volunteer public service and diplomatic efforts.

Phoenix Financial declined to answer CNN’s specific questions, saying that it is regulated and that shareholder value is primarily derived from the company’s operating performance rather than investment returns. The nine defense-linked companies identified by CNN did not comment for its report.

The White House also rejected any connection between Kushner’s investments and his diplomatic activities, saying his personal business interests have nothing to do with his diplomatic engagements.

The findings nevertheless place renewed attention on the unusual intersection between Kushner’s role as a private investor and his involvement in US diplomacy in a region where companies indirectly held through his investment portfolio have significant commercial interests.