Key facts
- 1789 Capital, co-founded by Donald Trump Jr., manages approximately $3.5 billion in assets.
- Ten defense, space, and software companies backed by 1789 Capital have received over $1.6 billion in federal contracts and grants.
- These companies received 79% more federal funding in the first 500 days of the Trump administration compared to the same period at the end of the Biden administration.
- 1789 Capital pitches itself as dedicated to 'patriotic capitalism' and aligns its investments with conservative values and the Trump administration's policies.
- An attorney representing 1789 Capital stated unequivocally that no one from the firm has discussed federal contracts with the Trump administration.
- Donald Trump Jr.'s spokesperson stated he plays no role in the contracting process and does not interface with the federal government for his investments.
1789 Capital, an investment firm co-founded by Donald Trump Jr. and Omeed Malik, has seen significant growth and success, with investments in artificial intelligence and defense technology reportedly tripling in value within months. The firm, which operates from an office near President Donald Trump's Mar-a-Lago Club, aims to invest in businesses aligned with conservative values and the current administration's policies.
CNN's analysis of contracting data revealed that ten defense, space, and software companies in which 1789 Capital is invested have been awarded over $1.6 billion in federal contracts and grants during the first 500 days of the Trump administration. This represents a 79% increase compared to the funding these companies received during the same period at the end of the Biden administration. Additionally, other startups backed by the firm are on track to receive over $1 billion in federal loans and subcontracts.
1789 Capital leaders have also invested in companies that could potentially benefit from specific policy decisions made by the administration, such as those involved in direct-to-consumer pharmaceutical sales, testosterone products, and vaping manufacturing. While there is no direct evidence that 1789 Capital or Donald Trump Jr. have lobbied for these federal contracts, Trump Jr. has publicly suggested that his firm's proximity to the administration provides a strategic advantage. He stated at a Saudi business conference that his understanding of the administration's plans, partly due to his involvement in crafting messaging, allows 1789 Capital to operate effectively from the outside.
Thomas Clare, an attorney representing 1789 Capital, unequivocally denied any discussions between the firm and the Trump administration regarding federal contracts. A spokesperson for Trump Jr. echoed this, stating that he plays no role in the contracting process and exercises his rights as a private American citizen. The companies receiving contracts also reported no knowledge of influence from the firm.
Despite these assurances, government watchdogs have raised concerns. Dylan Hedtler-Gaudette of the Project on Government Oversight noted that taxpayer money is flowing to companies associated with the Trump family, potentially undermining public trust. The firm itself has grown rapidly, with leaders reporting assets under management increased from less than a billion dollars to approximately $3.5 billion, a significant portion of which reportedly comes from foreign investors. Other firms have also launched similar funds targeting US industries and investing in companies that secure federal contracts.