1789 Capital’s Surge Amid Trump Administration Ties

Donald Trump Jr. became a partner at 1789 Capital shortly after his father, President Donald Trump, was re-elected in November 2024. Within two years the firm’s assets swelled from a few hundred million dollars to more than $3 billion. The New York Times reports that the firm has “cashing in” on its proximity to the administration, backing companies that subsequently secured lucrative federal contracts in defense and technology. Within the first 500 days of the second Trump administration, firms linked to 1789 received $6 billion in contracts and grants—79 percent more than the comparable period at the end of President Joe Biden’s term, according to the outlet’s analysis.

The Independent

• Polymarket, a prediction-market platform banned in 2022, was revived after a settlement and saw its valuation rise from $300 million to $15 billion following 1789’s investment.

The Independent

• Vulcan Elements, a rare-earth magnet start-up, jumped from a $200 million valuation to a potential $2 billion valuation, per a Bloomberg analysis in March. The Trump administration later granted the company a record $620 million Defense Department loan and $50 million in CHIPS Act incentives, with the Commerce Department taking an equity stake.

The Independent

Donald Trump Jr. told The New York Times he is a private citizen, speaks to his father only “every few weeks,” and holds no policy role. He denied having inside information about the rare-earth loan, saying the investment’s success was “obvious.” Business partner Omeed Malik similarly said he has never set foot in the White House and learned of the loan only through a news release. The White House has pushed back against accusations of a conflict of interest, though no formal response was provided in the sources.

The Independent

Angela Lee, a venture-capital professor at Columbia Business School, warned that “people are paying for proximity to power.”

The Independent

• “People are paying for proximity to power,” — Angela Lee, a venture capital professor at Columbia Business School

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• “There’s money from my paycheck and your paycheck that is being taken out in the form of taxes and is going directly into the pocketbooks of these companies and by extension to the Trump family,” — Dylan Hedtler-Gaudette

The Independent