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Kushner’s Saudi-Backed Affinity to Acquire Stake in Israeli Firm

Marissa Newman
Wed, September 6, 2023 


(Bloomberg) -- Jared Kushner’s Affinity Partners is acquiring a $150 million minority stake in an Israeli car company, marking the first investment in Israel for the Miami-based private equity firm that is backed by Saudi Arabia’s sovereign wealth fund.

Affinity will buy a 15% stake in the closely held S Shlomo Holdings Ltd’s car and credit division, it said in a filing on Wednesday.

The investment comes as the Biden administration seeks to broker a deal that would see Saudi Arabia establish diplomatic ties with Israel. The two countries have no official relations and direct investment by the kingdom in Israeli-linked companies is rare, though some of their businesses have covertly worked together through intermediaries for years.

Affinity did not seek approval for the deal from any of its limited partners, including the Saudi Public Investment Fund controlled by the country’s Crown Prince Mohammed bin Salman, according to people familiar with the matter, who asked not to be identified because they were not authorized to discuss the terms.

Affinity declined to comment, while a spokesperson for PIF did not immediately respond to a request for comment.

Under the agreement, a new subsidiary will be created consolidating Shlomo Holdings’ car rentals, sales, and credit business, with an equity valuation of $1 billion, according to the filing. Affinity will appoint a director and an observer to the unit’s board of directors.

Separately, Affinity is in talks with Israel-based financial firm Phoenix Holdings Ltd to acquire a stake, according to a person familiar with the negotiations. The talks, first reported by Calcalist, come after a consortium of Abu Dhabi funds called off a planned deal to buy a controlling stake in the firm.

A Phoenix spokesperson did not immediately respond to a request for comment.

Kushner is the son-in-law to former President Donald Trump and served as a senior White House adviser. He has raised over $3 billion for his firm, primarily from PIF. The private equity fund plans to invest millions in Israeli tech startups, the Wall Street Journal reported last year.


The Biden administration is pushing for a deal that would establish friendly relations between Israel and Saudi Arabia for the first time. Any agreement would likely include security guarantees from Washington and concessions on the Palestinians.

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