During that time, the company had raised less than $200 million, and it also had not made many investments other than a group that put $15 million into Tucker Carlson’s new media company, according to Business Insider. As per the report, 1789 Capital’s goal was to create a “parallel economy,” investing in “anti-woke” businesses that align with MAGA values.
1789 Capital Landing Top Deals
But since Don Jr. joined the firm, the company’s fortunes have quickly transformed, as per the report. Within a matter of months, 1789 Capital has landed some of the most high-profile investment transactions in the market, according to Business Insider.
As per the report, 1789 Capital got shares in several coveted offerings, like Elon Musk’s SpaceX, which are essentially an insider deal because to participate in the offering, a company needs to receive an invitation from someone already in the club, reported Business Insider.
The investment startup also invested in Musk’s artificial intelligence company, xAI, and a few other startups that have received or are contending for the Defense Department’s contracts, as per the report.
Experts Raise Red Flags on Ethics
A law professor at George Washington University who had also served as special counsel for the Defense Department, Laura Dickinson said, “This certainly raises serious concerns about the appearance of corruption, because Trump’s family is benefiting,” adding, “And when you look at this in the context of arbitrary cuts to other programs, it raises questions about whether preferential treatment is being given to family and others who curry favor with Trump,” quoted Business Insider.A Wall Street investor on anonymity told Business Insider that 1789’s deals would help the president’s son to profit from the administration’s actions, even if no contractors are given preferential treatment, saying, “It’s a way for Mar-A-Lago to get paid,” quoted Business Insider.
Big Money
Bloomberg found that 1789 has raised about $500 million within just three months since Trump was inaugurated. The company is set to collect $1 billion for its first fund by the middle of this year, and another $3 billion to $5 billion for a second fund next year, reported Bloomberg.
FAQs
Is there proof that 1789 Capital got special treatment?
There’s no official proof, but the speed and scale of its success after the election is raising suspicions.
How much has 1789 Capital raised so far?
About $500 million in just a few months, with plans to raise up to $5 billion in the near future.