Jared Kushner (Wikipedia)
In a high-stakes move with striking geopolitical undertones, Israel’s Capital Market, Insurance, and Savings Authority has granted its approval for the sale of shares in Phoenix Financial Ltd. to the Affinity Fund, controlled by Jared Kushner, son-in-law of U.S. President-elect Donald Trump.
This pivotal decision, issued just hours before the expiration of an option to acquire 4.95% of the insurance giant’s shares, cements Affinity Fund’s position as a dominant force in Phoenix. With the approval, the fund’s holdings in Israel’s largest insurance and financial company have surged to 9.9%, catapulting it to the top spot as Phoenix’s largest shareholder.
The timing and implications of this acquisition are bound to spark debate, intertwining business, politics, and international relations in a rapidly evolving narrative.
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Affinity Partners was founded by Jared Kushner, Donald Trump’s son-in-law, while Trump was still in office and with Saudi money, and while Kushner himself was still working at the White House.
Affinity Partners raised $2 billion from the Saudi Arabian Sovereign wealth fund called the Public Investment Fund. Jared Kushner made trips to Arab Gulf states while Trump was on his way out of office, ostensibly to promote the new Abraham Fund, a U.S. government-sponsored program that was established in the wake of the signing of the Abraham Accords – the peace deal between Israel and the Arab Gulf states Bahrain and the UAE.
Founded by David Hachmy in 1949 as a private company, which became public in 1978, The Phoenix has been operating in the Insurance and Finance field for the past 71 years, and as of today, is considered to be the leading insurance company in Israel. The Company’s main focus is in the insurance, health, pension and provident fields. As of today, the company’s stock is a constituent of a few main indices, among them is the prestigious Tel Aviv 35 index.
Phoenix, Israel’s largest insurance company, manages ₪500 billion ($136.99 billion) in assets and generated 1.28 billion Shekels ($350.7 million) in revenue during the first nine months of 2024. Listed on the Tel Aviv Stock Exchange, Phoenix boasts a market capitalization of ₪14.7 billion ($4.03 billion), significantly exceeding its competitor Harel, valued at ₪11 billion ($3.01 billion). Even with Affinity Partners increasing its stake, Phoenix will continue to operate without a controlling shareholder. The company is led by CEO Eyal Ben Simon and Chairman Benny Gabai.
Jared Kushner’s Affinity Partners also holds a 15% stake in Shlomo Holdings, the Schmelzer family’s holding company, acquired a year ago for $110 million. Previously, Affinity considered acquiring 25% of Phoenix’s insurance agencies for $1 billion but ultimately abandoned those negotiations.
