CNN Report Links Jared Kushner's Business Dealings to Israeli Defense Investments

A CNN investigation has revealed business connections between Jared Kushner, a key mediator in Gaza negotiations and former White House advisor, and the Israeli investment group The Phoenix. Kushner's investment firm, Affinity Partners, holds a significant stake in The Phoenix, which in turn has invested hundreds of millions of dollars in companies supplying equipment to the Israel Defense Forces (IDF). The Phoenix's investments include at least $265 million in Elbit Systems, as well as holdings in companies providing drone cameras, artillery components, and armored vehicle parts.

While Affinity Partners does not directly own these defense companies, its substantial ownership in The Phoenix, reportedly around 7.4% and valued at over $1 billion as of July, creates an indirect link. CNN's report highlights that Kushner's investment in The Phoenix has been highly profitable, with Affinity acquiring its initial stake in 2024 for approximately $128.5 million and later increasing it. The firm sold a quarter of its holdings in July for over $340 million, remaining the largest shareholder.

These financial ties have drawn scrutiny given Kushner's role in Middle East diplomacy, particularly his involvement in ceasefire negotiations and reconstruction efforts in Gaza. Unlike his previous tenure in the Trump administration, Kushner is currently not a federal employee and operates voluntarily, which means he is not subject to the same financial disclosure requirements.

CNN emphasized that it found no evidence that Kushner's diplomatic activities influenced The Phoenix's investment decisions, or vice versa. However, Kushner's lawyer vehemently denied any suggestion of impropriety, stating that Kushner never participated in or directed The Phoenix's investment decisions. The lawyer added that while Kushner did discuss the company and market trends with The Phoenix's management, the frequency of these discussions decreased as his public and diplomatic involvement grew.

Cynthia Brown, Chief at Citizens for Responsibility and Ethics in Washington, told CNN that the combination of Kushner's diplomatic role and business interests raises potential conflict of interest questions. Democratic members of Congress have also raised concerns, with Representative Jamie Raskin requesting information about Affinity's activities and its business relationships with Middle Eastern governments and funds.