Kushner’s Affinity plans partial exit from Phoenix stake after 5x return
Fund considers selling up to 3% of insurer as valuation hits $17 billion.
Affinity Partners, the investment fund founded by Jared Kushner, is preparing to partially realize its holding in Phoenix Financial. Affinity is the largest shareholder in the Israeli insurance and financial services company, which is publicly traded without a controlling shareholder and is managed by Eyal Ben-Simon.
Calcalist has learned that the fund is considering selling 2%-3% of Phoenix shares out of its 9.83% stake in the company. Phoenix’s current market value is approximately NIS 48.5 billion ($17M) ,more than five times the valuation at which Affinity acquired its initial stake from the U.S. funds Centerbridge and Gallatin Point in July 2024, in a transaction that ended their controlling position.
Based on current prices, Affinity’s stake in Phoenix is worth approximately NIS 4.75 billion ($1.68B). A sale of 2%-3% of the company would amount to roughly NIS 1-1.5 billion ($350M-$530M). In addition, the fund has received about NIS 200 million ($70.5M) in dividends since the investment, bringing the total value of its return to nearly NIS 5 billion ($1.76B).
It was also learned that international entities approached the fund in recent days with offers to purchase approximately 3% of Phoenix shares. However, they were told the shares are not currently for sale, partly due to the war with Iran. Kushner and Affinity are not interested in selling during a period of war, to avoid the impression of withdrawing from Israel during a sensitive time, particularly given that the fund’s anchor investors include sovereign wealth funds from Gulf states such as Saudi Arabia and Qatar. However, as the war is believed to be nearing its end, the situation may change and open the door to a partial sale.
At this stage, Affinity is leaning toward selling about 2% of its holdings. Even in a 3% sale scenario, it would remain the largest shareholder in Phoenix, as Menora Mivtachim, through Menora Gemel, holds approximately 6.3% of the company.
Affinity acquired its stake in Phoenix in two stages. The fund raised approximately $2 billion from Gulf investors, including Saudi Arabia, the United Arab Emirates, and Qatar. This initially raised regulatory concerns regarding ownership approval, leading the fund to first acquire 4.95% of Phoenix in July 2024 for NIS 466 million ($165M), along with an option to purchase an additional 4.95% at the same valuation.
Related articles:
The option exercise was subject to approval from Israel’s Capital Market Authority, which was granted in January 2025. The approval limited voting rights to 5%, despite a larger economic holding. In total, Affinity invested NIS 932 million ($330M) in Phoenix, generating a return of more than five times in less than two years, an exceptional performance even in private markets. A sale of 2% of the company would effectively return the fund’s original investment, leaving it with approximately 7.8% ownership.
Phoenix’s stock has surged 456% since Affinity became a shareholder, alongside a broader rally in the insurance sector driven by the adoption of IFRS 17 accounting standards, improved reflection of insurance profits, a decline in Israel’s risk premium, and continued business growth. Phoenix is currently the largest institutional company in Israel by market capitalization.
Affinity responded: “The company believes that Phoenix has a strong management team and that it will continue to be the largest shareholder for the foreseeable future.”
The fund, which previously explored acquiring a 25% stake in Phoenix’s insurance agencies at a valuation of approximately $1 billion before terminating discussions, also holds 15% of Shlomo Holdings’ automotive company, acquired in 2025 for $110 million.
Affinity Partners was founded by Kushner in 2021 and has since raised approximately $5 billion. In March 2025, it completed a $1.5 billion fundraising round from the Abu Dhabi-based Lunate, which manages more than $110 billion in assets, as well as from Qatar’s sovereign wealth fund. Anchor investors include the Saudi sovereign wealth fund, which invested approximately $2 billion, along with additional Gulf investors. Other backers include Taiwanese billionaire Terry Gou. Reports estimate Affinity collected approximately $157 million in management fees between 2021 and 2024.
Kushner, who is married to Ivanka Trump, daughter of U.S. President Donald Trump, is regarded as a political figure with close ties in the Middle East. In recent years, he has also been involved in efforts related to negotiations over the release of hostages abducted on October 7, working alongside U.S. envoy Steve Witkoff.
In the past, the Kushner family attempted to acquire control of Phoenix from Yitzhak Tshuva, but the move was blocked during Dorit Salinger’s tenure as Capital Market Commissioner. According to estimates, the decision was influenced in part by investigations involving Kushner’s father, Charles Kushner, a U.S. real estate businessman.
