Full Breakdown
Jared Kushner’s Gaza Diplomacy Faces Scrutiny Over Israeli Defense Investments
By Drooid · · How we work
Core Event: Conflict-of-Interest Concerns
U.S. envoy Jared Kushner, a senior Trump administration negotiator for a Gaza cease-fire, is also the principal owner of Affinity Partners, which holds the largest share in Phoenix Financial, a Tel-Aviv firm that invests in Israeli companies supplying weapons and equipment to the Israeli Defense Forces (IDF). CNN’s investigation links Affinity’s stake to a portfolio of at least nine defense firms, raising questions about whether Kushner’s diplomatic work benefits his private-equity interests.
Background & Context
Kushner founded Affinity Partners in 2021 after leaving the White House. The firm’s investment in Phoenix Financial began in 2024 with a purchase of a roughly 5 percent stake for $128.5 million. Affinity doubled that position in early 2025, shortly before President Donald Trump began his second term. Throughout 2025, Kushner has acted in an unofficial capacity as a “special envoy for peace,” participating in negotiations that produced an October 2025 cease-fire agreement and a proposed reconstruction plan for Gaza.
Financial Stakes in Israeli Defense Firms (Data & Statistics)
- Phoenix Financial’s defense-related portfolio totals at least $456 million across nine companies.
- Elbit Systems – Israel’s largest arms maker – accounts for about $265 million of the investment.
- Next Vision (drone-camera maker) – more than $68 million.
- Bet Shemesh Engines (aircraft engines) – approximately $55 million.
- Reshef Technologies (electronic fuzes) – around $40 million, with reported orders of $165 million from the Israeli war ministry since the Gaza conflict began.
- Other holdings include Israel Shipyards, Boeing, Caterpillar and Ashot Ashkelon.
- After selling roughly a quarter of its Phoenix stake in mid-2025 for $340 million, Affinity retained a 7.4 percent share valued at more than $1 billion.
Official Statements & Responses
- “I have no role in deciding what Phoenix buys or sells.” — Jared Kushner, lawyer.
Conflicting Reports & Gaps
- CNN’s review found no evidence that Kushner’s diplomatic work directly influenced Phoenix’s investment choices, while Kushner’s own statements claim a “very active dialogue” with the firm.
- The total amount invested in defense firms is reported as $456 million in multiple sources, but the breakdown of individual company investments varies slightly (e.g., Elbit cited as $265 million versus $265.1 million).
- No public disclosure requirement applies to Kushner in his unofficial envoy role, leaving a gap in formal ethics oversight.
Verbatim Quotes
- “I have no role in deciding what Phoenix buys or sells.” — Jared Kushner, lawyer
- “There are always people who profit from war or government policies,” — Cynthia Brown, chief ethics counsel for Citizens for Responsibility and Ethics in Washington
- “For the last 10 years, I have ignored false and misleading stories about me and focused on the work,” — Jared Kushner, lawyer
What’s Next
A field tour of Gaza led by IDF chief Eyal Zamir, attended by Kushner, U.S. envoy Steve Witkoff and CENTCOM chief Brad Cooper, is scheduled for October 11, 2025. The visit will occur amid ongoing congressional interest in potential investigations of Kushner’s financial ties.