1789 Capital Scales Up 17-Fold with Trump Jr.; Accelerates Investment in AI and Defense

Venture capital firm 1789 Capital has been experiencing rapid growth, leveraging its political connections since Donald Trump Jr., the eldest son of U.S. President Donald Trump, joined the company. 1789 Capital is advocating for "patriotic capitalism" and is focusing its investments on artificial intelligence (AI) and the defense sector.

Reuters Yonhap News

According to the Financial Times (FT) on May 17 (local time), 1789 Capital, where Trump Jr. serves as a partner, has made a series of investments in major unlisted AI companies, causing its assets under management to surge from $200 million to $3.5 billion over the past year.

Paul Abrahimzadeh, a partner at 1789 Capital, stated that the company aims to increase its assets under management to $10 billion within the next few years and to secure the firm's position beyond the Trump era. 1789 Capital was founded in 2022 in Palm Beach, Florida, by investment banker Omeed Malik and entrepreneur Christopher Buskirk, among others.

Abrahimzadeh likened 1789 Capital to the Carlyle Group, which is well-known for its political connections. The Carlyle Group was once dubbed the "club of former presidents," as it had former U.S. President George H. W. Bush and former UK Prime Minister John Major as advisors. Abrahimzadeh said, "Understanding the political landscape is crucial when making investment decisions. While this may not be a core competency in Silicon Valley, founders want—and need—to understand the geopolitical and macroeconomic factors that affect their business."

The FT pointed out that the growth of 1789 Capital is an example of how organizations connected to the Trump family are benefiting from the president's policy direction. President Trump’s public support for AI and defense companies has contributed to 1789 Capital’s expansion.

After Donald Trump won the 2024 presidential election, 1789 Capital recruited Donald Trump Jr. The company’s political network extends beyond hiring Trump Jr. Malik is a Trump supporter and was involved in efforts to bring Robert F. Kennedy Jr. into the Trump camp in 2024. Buskirk co-founded a donor network backed by Peter Thiel along with U.S. Vice President JD Vance, while the Mercer family was a key source of funding for Trump’s 2016 presidential victory.

There are also examples showing how 1789 Capital benefits from its political connections. Mohsen Moazami, President of International Business at Groq, said he first met 1789 Capital partners at a dinner held at Donald Trump’s Mar-a-Lago resort. The dinner was also attended by President Trump and Elon Musk.

Moazami gave 1789 Capital an "A-plus" rating for its ability to connect portfolio companies with influential figures both inside and outside the United States. He added that Donald Trump Jr. is a significant asset to the company and that "his name cannot be ignored."

Abrahimzadeh emphasized that the core investment philosophy of 1789 Capital is "investing exclusively in America." He explained, "We were the first fund to promise to advance American exceptionalism in the private investment market. That is what we call 'patriotic capitalism.'"

According to PitchBook, 1789 Capital has made a series of investments over the past year in late-stage unlisted companies favored by investors. These include software company Databricks, expense management startup Ramp, HR platform Deel, data center firm Crusoe, chip designer Groq, and AI research lab Replit AI. The firm has also invested in Elon Musk’s xAI and SpaceX. Other investments include semiconductor company Cerebras, defense startup Anduril, Hadrian Automation, Vulcan Elements, a Florida real estate fund, and prediction market platform Polymarket, among others.

However, the strong political alignment also poses risks. While Moazami acknowledged that Trump Jr.'s name is an asset for 1789 Capital, he warned that “if the political climate shifts, the company could come under closer scrutiny.”

This content was produced with the assistance of AI translation services.