An article summarized by The New Republic:
According to a CNN investigation, Jared Kushner’s private-equity firm, Affinity Partners, has made substantial gains from its investment in Phoenix Financial, an Israeli financial company. Shortly before Donald Trump returned to office, Affinity reportedly doubled its investment in Phoenix. Phoenix has invested hundreds of millions of dollars in Elbit Systems, Israel’s largest defense manufacturer, as well as other companies connected to Israel’s military economy.
Affinity does not directly own those defense companies, but it has benefited from Phoenix’s growth. In July, Affinity reportedly sold about one-quarter of its Phoenix stake for more than $340 million, over five times the value of its initial stock purchase. Affinity remains Phoenix’s largest shareholder, with a 7.4% stake worth more than $1 billion. Kushner has called Phoenix Affinity’s “best investment” and previously maintained regular discussions with Phoenix executives.
The issue has drawn scrutiny because Kushner has also played a prominent role in the Trump administration’s Middle East diplomacy and Gaza negotiations. Ethics experts cited by CNN argue that people involved in making government policy should not simultaneously profit from investments potentially affected by those policies. Kushner’s attorney disputes any conflict, saying Kushner never directed Phoenix’s investment decisions and that his diplomatic work did not influence Phoenix’s investments. The underlying financial relationship is documented, while whether it constitutes an actual conflict of interest remains a matter of dispute.
