A private investment firm co-founded by Donald Trump Jr., 1789 Capital, has reported returns of approximately 200 percent as of mid-2025, substantially outperforming the average 21 percent returns of venture capital firms established in 2023, according to financial industry sources. Since its inception, 1789 Capital has expanded rapidly, growing from managing several hundred million dollars to overseeing more than $3 billion in assets.
1789 Capital, co-led by Trump Jr. and former banker Haris Malik, has focused its investments on U.S.-based private companies, many of which benefit from government contracts or policies related to national security and technological development. Among their portfolio are firms such as SpaceX, Anduril, Cerebras, and Reflection AI. The firm’s emphasis aligns with administration policies prioritizing domestic production and strategic autonomy, particularly in sectors like defense, space, artificial intelligence, and rare-earth materials.
The firm’s success has drawn scrutiny, with Democratic lawmakers investigating the timing of 1789’s investment in Vulcan Elements, a magnet manufacturer that shortly thereafter secured a $620 million loan commitment from the Department of Defense. While Democrats have raised questions about potential influence from 1789 on the federal financing decision, the firm denies any insider involvement. Malik stated that the loan announcement came after their investment, and Trump Jr. confirmed he has no direct ties to the company’s leadership.
1789 Capital publicly embraces its connections to President Donald Trump’s political network but denies exploiting direct access to the president. Trump Jr. emphasized that as a private citizen, he is entitled to invest freely, does not hold a policy role, and communicates with his father infrequently. Malik highlighted his own distance from the White House, noting he has never visited the executive mansion. Several executives of 1789 portfolio companies report that while the firm’s political ties are acknowledged, they do not seek or receive special treatment from the administration.
The firm’s origins trace back to 2018 when Trump Jr. and Malik, introduced by Kimberly Guilfoyle, formed a partnership grounded in shared conservative values and concerns over China’s economic influence and perceived marginalization of conservative perspectives in mainstream institutions. Malik, previously a managing director at Bank of America before departing amid controversy, shifted political allegiance from Democratic fundraising to supporting the Trump reelection campaign, contributing roughly $100,000 in 2020.
1789 Capital’s investor base includes prominent Republican donors, such as Rebekah Mercer, and associates of the Rockbridge Group, a network of Trump supporters. The firm has actively sought investments from international markets, including South Korea and the Middle East, and is involved in strategic partnerships like the development of a multi-billion-dollar data center in South Korea with Reflection AI and Shinsegae Group. This data center project, backed by the U.S. Commerce Department’s American AI Exports Program, is positioned as a milestone in U.S.-South Korea technological cooperation.
Critics raise concerns about transparency and the potential erosion of norms regarding the intersection of public office and private business, with experts noting that few formal rules govern investment activities by family members of sitting presidents. Supporters argue that 1789’s investments promote American interests by supporting domestic companies in critical sectors.
As the firm continues to leverage its political relationships alongside traditional investment strategies, questions remain about the broader implications for governance and the boundaries between public policy and private enterprise.