Jared Kushner’s firm becomes top shareholder in Israeli defense‑linked group amid Gaza negotiations

On Oct. 2, 2026, CNN reported that Jared Kushner’s private‑equity firm Affinity Partners had become the largest shareholder in Phoenix Financial, a Tel Aviv‑based investment group that backs companies supplying Israel’s military.

The disclosure raises concerns about a potential conflict of interest, because Kushner is simultaneously serving as a senior U.S. negotiator on the Gaza conflict.

Affinity Partners holds a 7.4% stake in Phoenix Financial, valued at more than $1 billion as of July, after purchasing a 4.95% share for $128.5 million in 2024.

Phoenix has invested at least $465 million across nine defense‑related companies, including makers of drones, demolition machinery and Israel’s largest arms producer, Elbit Systems.

The firm also owns a $68 million stake in Next Vision, which supplies cameras for military drones, and about $40 million in Reshef Technologies, a producer of electronic fuzes for artillery shells used in Gaza.

Since the Oct. 7, 2023 Israel‑Hamas war began, Phoenix reported $165 million in orders from the Israeli Ministry of Defense for its portfolio companies.

Additional Phoenix holdings include minority stakes in Caterpillar and Boeing, both of which provide equipment that has been used by the Israeli military.

"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 there’s a lot of similarities," Kushner said in a September 2025 podcast. "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.’"

Kushner’s attorney told CNN that he never directed Phoenix’s investment decisions and that his involvement with the firm’s management has declined since he began diplomatic work.

A White House official said Kushner’s personal business activities are completely separate from his diplomatic engagements, but Phoenix Financial and the administration did not immediately respond to requests for comment.

Lawmakers and watchdog groups are expected to examine whether Kushner’s dual roles violate ethics rules, setting the stage for further scrutiny of his financial ties to Israel’s defense sector.