Kushner’s Affinity to pay $127M for additional Phoenix stake, securing $72M instant profit
Kushner’s Affinity to pay $127M for additional Phoenix stake, securing $72M instant profit
The fund increases its holding to 9.9% in Israel’s largest insurer, benefiting from a sharp rise in stock value.
Jared Kushner's Affinity Partners investment firm will increase its holding in Phoenix Holdings to approximately 9.9%, becoming its largest shareholder. Calcalist has learned that the legal representatives of Kushner's fund, affiliated with the son-in-law of incoming U.S. President Donald Trump, have received indications that the Capital Market Authority will grant permission for the fund to hold up to 10% of Phoenix's shares.
The decision has reportedly been communicated to the investment funds Centerbridge Partners and Gallatin Point, which sold Kushner the shares and options, as well as to Phoenix itself. Wednesday marks the deadline for executing the option transaction. Negotiations between Affinity and the Capital Market Authority spanned about six months to secure the permit. If the fund had failed to obtain the permit, the shares would have reverted to Centerbridge and Gallatin, along with the profits.
Affinity Partners manages approximately $2 billion, raised primarily from Gulf countries, including Saudi Arabia, the UAE, and Qatar. This funding source initially cast doubt on the likelihood of securing approval for its Phoenix stake. In July 2024, the fund settled for an initial purchase of 4.95% of Phoenix shares for ₪466 million ($127.7 million), alongside an option to acquire an additional 4.95% at the same price, contingent on regulatory approval. With the permit now granted, the fund can exercise its option.
Since the July transaction, Phoenix's stock has surged by 55%, raising the value of 4.95% of its shares to ₪731 million ($200.3 million) and the company’s overall valuation to ₪14.7 billion ($4.03 billion). This means Affinity is acquiring the additional shares at a profit of ₪265 million ($72.6 million). Combined with the similar profit it registered on the previously purchased shares, Affinity has gained an impressive ₪530 million ($145.2 million) in just six months.
It remains unclear how Affinity’s increased stake will influence Phoenix. While the fund has emphasized its holding as financial rather than managerial, it may gain the right to appoint one director. Currently, Harel (7.3%) and Clal (6.9%) are the largest shareholders in Phoenix, but Affinity will now hold the largest stake.
On July 16, Centerbridge and Gallatin signed an agreement to sell 16.48% of their shares at ₪37.5 ($10.27) per share to various investors. Among the buyers were Yitzhak Tshuva’s Delek Group, which initially acquired 4.9% for ₪220 million ($60.3 million) but later sold it for a ₪120 million ($32.9 million) profit. The deal was brokered by Jefferies bank.
Phoenix manages assets worth ₪500 billion ($136.99 billion) and earned ₪1.28 billion ($350.7 million) in the first nine months of 2024. It is Israel’s largest insurance company and is listed on the Tel Aviv Stock Exchange with a market value of ₪14.7 billion ($4.03 billion), well ahead of its rival Harel, valued at ₪11 billion ($3.01 billion). Despite Affinity’s increased stake, Phoenix will remain a company without a controlling interest.
Phoenix is currently led by CEO Eyal Ben Simon and Chairman Benny Gabai.
Affinity Partners also owns 15% of Shlomo Holdings, the Schmelzer family’s holding company, which it acquired a year ago for $110 million. The fund had previously explored acquiring 25% of Phoenix’s insurance agencies in a deal that valued the agencies at $1 billion but ultimately ceased negotiations.
