Kushner Firm's Stake in Israeli Defense Companies Raises Conflict of Interest Concerns

Jared Kushner, former US President Donald Trump's son-in-law and a volunteer envoy involved in arrangements for the war on Gaza, has a dual role as a businessman whose company, Affinity Partners, holds a significant stake in the Israeli group Phoenix Financial. According to a CNN investigation, Affinity Partners owns approximately 7.4% of Phoenix Financial, valued at over $1 billion as of last July. In the same month, Affinity sold about a quarter of its stake for over $340 million, a return exceeding five times its initial investment.

Phoenix Financial's disclosures to Israeli regulators reveal substantial investments in Israeli defense contractors. The group has invested at least $265 million in Elbit Systems, Israel's largest arms manufacturer, over $68 million in Next Vision, which produces cameras for military drones, and at least $40 million in Reshef Technologies, a maker of electronic fuses for artillery shells. Phoenix also holds shares in companies manufacturing components for tanks, warships, and heavy equipment.

While Affinity Partners does not directly own shares in these defense firms, it benefits from Phoenix's profits. The situation is sensitive because Kushner is an unofficial advisor to Trump and has been engaged in discussions with Israeli and regional officials concerning the war. As a volunteer, he is not subject to the financial disclosure rules applicable to government officials, prompting criticism regarding potential conflicts of interest.

Kushner's lawyer denied any involvement in Phoenix's decisions regarding the purchase, holding, or sale of these shares, stating Kushner is not on the company's board and that linking his diplomatic work to the group's investments is incorrect. The lawyer acknowledged Kushner's regular contact with Phoenix's management but noted it has significantly decreased.

The White House dismissed these concerns as an "old narrative" promoted by Democrats. While CNN found no evidence that Kushner's diplomatic actions directly influenced these investments, the financial data places his political role and financial interests in proximity, raising questions about managing interests when an investor is involved in war-related negotiations in the region.