Fidelity Increases Stake in Israel's Phoenix Insurance After Kushner's Partial Sale

Affinity Partners, the American investment fund led by Jared Kushner, sold a quarter (2.5%) of its holdings in Phoenix Finance, Israel's largest insurance company, for 1.05 billion shekels. Affinity, whose investors include sovereign wealth funds from Saudi Arabia, the UAE, and Qatar, will retain 7.4% of Phoenix shares valued at 3.3 billion shekels. The shares were sold to three major global institutional investors, with Fidelity Investments acquiring the largest portion, about 1.6%. Fidelity, which already held Phoenix shares, increased its stake, while the other two investors entered the company for the first time. The transaction was led by investment bank Jefferies, hired by Affinity.

Phoenix CEO Eyal Ben Simon recently met with global investors in New York. Despite strong demand, Kushner chose to remain the largest shareholder. The shares were sold at 168.5 shekels each, a 4% discount from the previous day's opening price on the Tel Aviv Stock Exchange, where Phoenix's stock closed down 2%. Affinity recovered its full investment of 932 million shekels and has earned dividends totaling 230 million shekels, yielding a 4.5-fold profit.

Affinity acquired its Phoenix stake in two phases in July 2024 and January 2025, purchasing 9.83% from American funds Centerbridge and Galton Point, which missed out on a fivefold increase in the company's value. Affinity initially bought 4.95% for 466 million shekels, with an option to buy an additional 4.95%, contingent on regulatory approval, which was granted in January 2025 with voting rights capped at 5%. Overall, Affinity's investment returned more than five times in under two years, an exceptional private equity performance.

Affinity's investors are from Gulf states, which initially raised regulatory concerns, limiting its voting rights despite holding nearly double the shares. The fund also holds 15% of Shlomo Holdings' automotive company shares, purchased in 2025 for $110 million. Kushner, a Jewish American married to Ivanka Trump, is known for his pro-Israel stance and political influence, including involvement in diplomatic efforts following the October 7 kidnappings.

Phoenix, traded without a controlling shareholder, is Israel's largest institutional entity by market cap (about 44 billion shekels) and managed assets (approximately 623 billion shekels as of Q1). Since Ben Simon and Chairman Benny Gabay took over in late 2019, Phoenix's market value has surged about 860%, growing more than ninefold from 5.1 billion shekels. The deal further diversifies Phoenix's foreign investor base, which already holds about 40% of its shares.