Jared Kushner becomes biggest shareholder in Phoenix

Updated 19.00

The Financial Market, Insurance and Savings Authority has approved the sale of shares in Phoenix Financial Ltd (TASE:PHOE) to the convergence fund of Jared Kushner, son-in-law of US President-elect Donald Trump. The approval was issued on the last day before the expiration of the option to exercise 4.95% in the insurance company’s shares. With the approval, Affinity Fund’s holdings in Phoenix, Israel’s largest insurance and financial company, rose to 9.9%, making it the largest shareholder in Phoenix.

Phoenix stock is currently trading at a market value of NIS 14.7 billion, after the share price rose by 60% over the past six months. Among the reasons for the jump was the deal struck by former controlling shareholders Centerbridge Partners and Gallatin Point to sell their holdings at a significant profit to Affinity, Delek Group and other investors.

Despite the approval of the Capital Market Authority, it is expected that restrictions will be imposed, as the fund is a “Saudi fund” whose financial sources are mainly from the Gulf countries.

5% of the shares, worth 470 million shekels

Affinity acquired a 4.95% stake in Phoenix in July for NIS 470 million, and in order to exercise the option to acquire an additional 4.95%, it will pay a similar amount. After the deal, this fund will hold shares worth NIS 1.46 billion, so the fund will have already made “paper” profits of more than NIS 500 million.

The other largest shareholders in Phoenix are rival insurance companies Klal (6.7%) with shares worth NIS 991 million and Harel (5.7%) with shares worth NIS 847 million.

In the same stock sale by Centerbridge and Gallatin, Delek Group, controlled by businessman Yitzhak Tshuva, bought a 4.9% stake and then quickly sold it, reaping a quick profit of NIS 120 million. In addition, Globes revealed at the time that other investors were investment bank Lazard, which bought 2% to 3% of the shares, and investment fund Riverwood Capital, which owned about 1.5% of the shares. This fund had already invested in Phoenix in the past and returned for a second round in the Israeli insurance company.

Another investor revealed by Globes in the same round is American billionaire Henry Soyka, founder and director of Highbridge Capital.

In October and then at the end of November, Centerbridge and Gallatin sold the rest of their holdings in the company to additional investors from Israel and abroad.

Published by Globes, Israel Business News – en.globes.co.il – on January 15, 2025.

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