Kushner’s company has large stake in firm with Israeli military links as he negotiates in Gaza

At the same time Jared Kushner has acted as a key negotiator in the war in Gaza, his private equity company, Affinity Partners, has held the largest stake in an Israeli firm backing businesses involved in Israel’s military campaigns, a CNN investigation has found. Kushner has skirted deeper scrutiny of this potential conflict of interest by acting as a volunteer envoy, rather than accepting a government job that would require him to disclose his finances. In the process, Kushner has carved out an unprecedented dual role under the Trump administration – one that blends lucrative business and high-stakes politics amid a devastating war. CNN used Israeli financial transparency laws to trace some of the military-linked investments of Phoenix Financial, a Tel Aviv-based firm that Kushner’s investment group doubled its stake in last year, shortly before Donald Trump returned to the Oval Office. Kushner later described Phoenix as Affinity’s “best investment.” Those records, which include only a fraction of Phoenix’s holdings, show Phoenix has invested hundreds of millions of dollars into Israel’s largest arms manufacturer, Elbit Systems. Phoenix also holds stakes in at least eight other companies providing equipment for the Israeli military ranging from drones to warships to demolition machinery, CNN found. All nine companies identified by CNN saw their stock value climb last year, with many stating the war in Gaza had driven demand for their businesses. Affinity doesn’t directly hold a stake in the nine companies CNN identified – but it does stand to reap rewards when Phoenix makes a profit. Since spring 2025, Kushner has been a leading administration voice in the Middle East, advising Trump and flying across the globe to negotiate with leaders including Israeli Prime Minister Benjamin Netanyahu – and even unveiling plans for rebuilding and transforming the Gaza Strip into a global tourist hub. Kushner was a key architect of the Gaza ceasefire brokered between Israel and Hamas last October; despite that deal, Israel continues striking the enclave on a near daily basis. CNN found no indication that Kushner’s actions as a diplomat directly affected the investments reviewed. However, his firm has reaped strong gains from its Phoenix investment, cashing out a quarter of its stake in July for more than $340 million – a return of more than five times its initial stock purchase. Owned solely by Kushner, Affinity remains Phoenix’s largest shareholder with a 7.4% stake worth more than $1 billion as of July. Kushner has spoken candidly about both his Phoenix investment and his role as a peace broker, arguing that financial profit is the best path toward lasting peace. “When you get an Arab and Israeli together and they start talking about a business opportunity, they forget about everything else and then they realize that there’s a lot of similarities,” Kushner told the “No Priors” podcast in September last year. “My investors from the Middle East are now looking at Israel, and they’re saying, ‘Wait a minute, maybe there’s a benefit to having these wars done,’” he added. But critics say Kushner’s financial entanglements combined with his unofficial role as a powerful White House representative to a war-torn region raise questions about whether he’s acting in the best interests of taxpayers or his own bottom line. “There are always people who profit from war or government policies. The difference is that the people profiting should not be the people making the decisions to make that policy. And that is what is happening here,” said Cynthia Brown, chief ethics counsel for Citizens for Responsibility and Ethics in Washington. An attorney for Kushner told CNN Kushner has “never participated in or directed Phoenix’s decisions” on where to invest, adding he had “no involvement in the decision to purchase, hold or sell any of the nine companies” highlighted by CNN and has never been on Phoenix’s board. They added, “any suggestion that Jared’s diplomatic work influenced Phoenix’s investments in the companies you identify, or vice versa, is incorrect.” Kushner, however, told Forbes last September that he maintains “a very active dialogue” with the financial group, meeting every few weeks with its leadership. His attorney confirmed to CNN this statement was accurate at the time and that Kushner “regularly spoke with Phoenix management about the company, broader market trends and potential strategic opportunities.” But they added that Kushner’s interaction with Phoenix’s management had significantly reduced since becoming “substantially more engaged in volunteer public-service and diplomatic efforts.” Some of Phoenix’s stakes in companies tied to the Israeli military came before Kushner’s firm became the largest shareholder. Others, including a company making electronic fuzes for shells used in Gaza, and another that manufactures parts for Israeli tanks, came after. Phoenix declined to address what appeared to be inconsistencies in the labeling of some of its public reports. Two forensic accountants in Israel separately reviewed the records and concluded, despite those inconsistencies, the filings analyzed by CNN are Phoenix’s holdings. These include investments CNN identified that were made by Phoenix in the military-linked firms. The documents show details for only one part of Phoenix’s portfolio, and do not include assets in retirement accounts or stakes held in companies through mutual funds, corporate bonds and other securities, the accountants confirmed. Though Phoenix did not provide comment on CNN’s findings, a company spokesperson noted that the firm is “regulated” and that “shareholder value is derived primarily from operating performance rather than investment returns.” As a private company, Affinity, like Kushner, is not required under US law to disclose where it invests. Kushner revealed in March that Affinity had made 28 investments so far, but the size of its stake in Phoenix relative to the rest of its holdings remains unclear. A spokesperson for the White House dismissed concerns over a potential conflict of interest between Kushner’s roles as volunteer and businessman, calling them a “tired narrative that Democrats have pushed against President Trump, his family, and his administration for a decade.” “Jared Kushner’s personal business activities have nothing to do with his diplomatic engagements, which he conducts on a volunteer basis at the President’s request,” said White House principal deputy press secretary Anna Kelly. She cited his “record of success” in past diplomatic efforts, including helping broker the Abraham Accords, the normalization agreements between Israel and several Arab states during Trump’s first term. Democrats, though, have sought to open new investigations into Kushner’s activities in the region, probes that could heat up if they retake control of the House in the midterms. In a letter sent to Kushner in April promising an investigation by the House Judiciary Committee, Democratic Rep. Jamie Raskin described Kushner’s dual roles as a “completely irreconcilable and unethical” decision that he said “has been haunting American foreign policy since President Trump returned to Washington in 2025.” ‘The president asked me to get more involved’ Kushner incorporated the company he later transformed into the Miami-based Affinity Partners on January 21, 2021, just a day after Trump’s first term ended. Six months later, the firm secured a $2 billion investment from the Saudi Public Investment Fund (PIF) – Saudi Arabia’s sovereign wealth fund led by the Crown Prince Mohammed bin Salman, with whom he had built a close relationship during Trump’s first term in office. At the time, the fund’s board overruled a group of PIF advisers who cautioned against the investment, warning in part of “the inexperience of the Affinity Fund management,” the New York Times reported. Cash injections from Qatar and the United Arab Emirates followed, as did a string of investments that included stakes in the Abu Dhabi-backed Zamp, which operates fast food restaurants across Brazil, and the Germany-based smart fitness company EGYM. In 2023, Affinity agreed to make its first investment in Israel, buying a 15% stake in the Shlomo Group’s car rental and credit business for $150 million. The next year, Affinity bought a 4.95% stake in Phoenix Financial for $128.5 million. Phoenix is one of Israel’s largest financial groups, offering services spanning insurance, pensions and asset management. Affinity then roughly doubled its stake in Phoenix five days before Trump was sworn back into office, becoming Phoenix’s largest shareholder. Kushner has described the investment as a bet on Israel’s economic strength. “Investing in Phoenix in July 2024 was a decision rooted in my belief in Israel’s resiliency and the fundamentals of Phoenix’s business,” Kushner told Bloomberg after receiving the nod from authorities to double his stake. Affinity’s renewed bet on Phoenix came amid Israel’s escalating war in Gaza, which began in retaliation for Hamas’ deadly Oct. 7, 2023, attacks, in which more than 1,200 Israelis were killed. Israel’s campaign, which officials have argued is necessary for national security, has killed more than 74,000 people, according to Palestinian health ministry figures, and been described as disproportionate by critics. An independent United Nations inquiry found Israel’s military actions in Gaza amounted to genocide, a characterization Israel has repeatedly rejected. Kushner soon stepped into a central role in mediating the conflict. But unlike during Trump’s first term, when Kushner was a senior adviser in the White House and helped craft key deals like the Abraham Accords, this time he avoided taking on a formal role. Instead, Kushner began acting as an unofficial adviser to his father-in-law starting in May 2025, as the war reached a fever pitch. Regional officials told CNN at the time they welcomed the help of Kushner, who had known Netanyahu since his teenage years and had forged strong relationships with other key regional players during the first Trump administration. Officials said they viewed him as more adept than Trump’s special envoy to the Middle East, Steve Witkoff, at navigating complex negotiations. “It really got started with Gaza. … I spent a lot of time helping Steve, just quietly. And then when things got very intense with Gaza, Steve and the president asked me to get more involved operationally,” Kushner later said. In September 2025, Kushner stood in the Oval Office as Netanyahu called Qatar’s prime minister following an Israeli strike targeting Hamas leaders in Doha. Later that day, he huddled with Netanyahu and his delegation to go over a framework for a Gaza ceasefire deal. In October last year, Trump dispatched his son-in-law to Sharm el-Sheikh, Egypt, to seal the deal. “I have Jared,” he said at the time. “Find anybody more capable.” Days later, Kushner stood in Hostages Square, Tel Aviv, celebrating the ceasefire he had helped broker. Amid this diplomatic maneuvering, Kushner openly discussed his commercial interests in the region. In January, he unveiled a “masterplan” for Gaza’s rebuilding at the World Economic Forum at Davos, including a “coastal tourism” zone long enough for 180 skyscrapers, and an airport to replace one destroyed in Israeli strikes more than two decades ago. “New Gaza” would be a center of industry, Kushner said, imploring private sectors to come forward, and promising them “amazing investment opportunities” awaited them in Gaza. Weeks later, in February, at the inaugural meeting of Trump’s “Board of Peace” established to oversee Gaza’s redevelopment and security, Kushner, who is an executive member of the board, said: “A lot of these people are volunteers. They’re doing this not for any personal gain. People are not personally profiting from this.” Both Kushner and his fellow envoy Witkoff have described approaching diplomacy as businessmen, identifying what each side wants, resolving obstacles and brokering deals. Kushner has brushed aside concerns about such overlaps. In an interview with “60 Minutes Overtime” in October 2025, he said, “What people call conflicts of interests, Steve and I call experience and trusted relationships.” In the case of Affinity’s stake in Phoenix, Kushner’s public diplomacy and private profit openly intersect. While Kushner is not required to disclose his holdings because of his volunteer status, Israel’s financial regulations provide a rare window into a firm Affinity has invested in. As a public company, Phoenix is required to publish some business details to Israeli regulators every quarter. Those documents show that Phoenix has invested significant capital in companies that have done business with Israel’s military as it waged