Kushner's Investment Firm Linked to Israeli Defense Companies in CNN Report

A CNN investigation has highlighted potential conflicts of interest involving Jared Kushner, former President Donald Trump's son-in-law and a key figure in Middle East diplomacy, due to his investment firm's significant holdings in the Israeli insurance group, The Phoenix. The Phoenix, in turn, holds substantial stakes in nine companies that supply equipment and weapons to the Israeli military. Critics argue that Kushner's dual role as a diplomat and investor raises ethical questions, although CNN stated it found no evidence that his diplomatic activities directly influenced these investments.

According to Israeli financial documents reviewed by CNN, The Phoenix had at least $456 million invested in these defense-related companies as of late June. The largest single investment was approximately $265 million in Elbit Systems. Other significant holdings included about $68 million in camera drone manufacturer Next Vision and $40 million in Reshef Technologies, which produces mortar fuses. The report also noted investments in companies like Israel Shipyards and Boeing.

Kushner's investment fund, Affinity Partners, acquired a 4.95% stake in The Phoenix in early 2024 for $128.5 million and later increased its holding. While Affinity Partners does not directly own shares in the nine identified companies, it stands to benefit from The Phoenix's profits. The fund later sold a quarter of its stake for over $340 million, retaining a 7.4% share valued at over $1 billion at the time.

Kushner's attorney asserted that Kushner never participated in or directed The Phoenix's investment decisions and was not involved in the purchase, holding, or sale of shares in the nine companies. The attorney stated that any claim of his diplomatic work influencing The Phoenix's investments, or vice versa, is false. The White House echoed this sentiment, with Deputy Spokesperson Anna Kelly stating that Kushner's private business activities are unrelated to his voluntary diplomatic work.

However, ethics watchdog CREW's senior official Cynthia Brown argued that those who profit from policy should not be involved in making it. Democratic Representative Jamie Raskin had previously announced plans to investigate Kushner's dual roles. Kushner himself, in a past interview, referred to such potential conflicts as "experience and relationships of trust."