CNN: Kushner’s investment firm holds major stake in Israeli company invested in defense industry
Jared Kushner, President Donald Trump’s son-in-law and a key participant in US diplomatic efforts in the Middle East, holds a substantial financial interest in an Israeli company that invests in businesses supplying equipment to the IDF, according to an investigation published by CNN.
The report examined the investments of Phoenix Financial, one of Israel’s largest financial institutions, in which Kushner’s private equity firm, Affinity Partners, is the largest shareholder.
According to CNN, Phoenix has invested hundreds of millions of dollars in Elbit Systems, Israel’s largest defense manufacturer, alongside investments in at least eight additional companies producing military equipment, including drones, naval vessels, artillery components, and armored vehicle parts.
Affinity Partners does not directly own shares in the nine defense-related companies identified in the investigation. However, its investment in Phoenix allows it to benefit financially from the Israeli company’s overall performance.
In July, Affinity sold approximately one-quarter of its Phoenix holdings for more than $340 million, generating proceeds exceeding five times the original purchase price of those shares. Following the transaction, Affinity retained a 7.4% stake in Phoenix, valued at more than $1 billion at the time.
The investigation identified Phoenix holdings in several Israeli defense companies, including at least $265 million in Elbit Systems, more than $68 million in military camera manufacturer Next Vision, and at least $40 million in Reshef Technologies, which produces electronic fuzes for artillery shells.
Other investments include Israel Shipyards, military vehicle component manufacturer Ashot Ashkelon, and US companies Boeing and Caterpillar, whose products are also used by the Israeli military.
CNN reported that all nine companies identified in its investigation experienced increases in their share prices during 2025, with several attributing increased demand for their products to the ongoing fighting.
Kushner’s firm first acquired a 4.95% stake in Phoenix in 2024 for $128.5 million and approximately doubled its holdings shortly before Trump’s inauguration in January 2025.
Since May 2025, Kushner has participated in administration diplomatic initiatives concerning Gaza, working alongside US Special Envoy Steve Witkoff. He helped negotiate the October 2025 ceasefire agreement between Israel and Hamas and subsequently presented proposals for Gaza’s reconstruction.
Unlike his position during Trump’s first administration, Kushner currently serves without an official government appointment. His volunteer status means he is not subject to the same financial disclosure requirements that apply to formal government officials.
CNN stated that its investigation found no evidence that Kushner’s diplomatic activities directly influenced the investments examined.
An attorney representing Kushner rejected suggestions of a connection between his diplomatic responsibilities and Phoenix’s investment decisions, telling CNN that Kushner had never participated in directing the Israeli company’s investments or deciding whether to purchase or sell shares in the defense-related businesses.
The attorney acknowledged that Kushner previously maintained regular contact with Phoenix executives regarding business developments and potential opportunities, but said those interactions had declined substantially as his diplomatic commitments increased.
The White House similarly dismissed allegations of a potential conflict of interest.
“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,” White House principal deputy press secretary Anna Kelly told CNN.
Democratic lawmakers and government ethics advocates have nevertheless questioned the arrangement, arguing that Kushner’s simultaneous involvement in regional diplomacy and private investments raises potential conflict-of-interest concerns.
Phoenix declined to address the investigation’s findings directly, emphasizing that it operates under financial regulation and that its shareholder value primarily reflects its operating performance rather than investment returns.
