New York July 16 2024: Jared Kushner’s Affinity Partners bought a $128.5 million stake in financial services firm Phoenix Holdings Ltd., marking the Saudi-backed company’s second deal in Israel in under a year.
The Miami-based private equity firm will buy a 4.95% stake in Phoenix from Centerbridge Partners and Gallatin Point Capital, according to a statement on Tuesday. Affinity also agreed to acquire a further 4.95% stake subject to approval from the Israeli regulator.
Centerbridge and Gallatin Point control Phoenix’s biggest shareholder, Belenus Lux, which owns just over 31%, according to data compiled by Bloomberg. The firms are selling part of their stake to other investors, including Israeli gas producer Delek Group, and their holding will drop to about 10% if the second tranche of the Affinity transaction goes through.
Belenus Lux is selling its stake at 37.5 shekels apiece, a 4% discount to Phoenix’s last closing price. The stock was down about 3% on Tuesday.
The sale comes less than a year after a consortium of Abu Dhabi funds led by ADQ called off a planned deal to buy a controlling stake in Phoenix. Affinity has previously invested in Israel, snapping up a stake in S Shlomo Holdings’ car and credit division in September.
Kushner is the son-in-law of former President and presumptive Republican nominee Donald Trump, and served as a senior White House adviser. He played a pivotal role in the Abraham Accords that normalized relations between Israel and some Arab nations in 2020.
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After leaving his government role, he set up Affinity, which has assets of over $3 billion. The firm was backed by Middle Eastern state-backed investors, including about $2 billion from Saudi Arabia’s Public Investment Fund.
