Members of the US House judiciary committee have initiated a formal investigation into 1789 Capital, a venture capital firm whose assets have expanded dramatically since Donald Trump Jr joined as a partner following his father's election victory in November 2024.
Congressman Jamie Raskin, the ranking Democrat on the judiciary committee, has demanded that Trump Jr and the firm's founders provide detailed documentation of the company's recent expansion. According to Raskin's office, the formal records request was released on 26–27 August 2026, with a deadline of 9 September for the firm to comply.
The firm's growth has been striking. Before Trump Jr's arrival, 1789 Capital managed approximately $150m in assets during 2024. That figure climbed to $2.7bn by year's end, then reached $3.5bn by May 2026, according to Securities and Exchange Commission filings. A substantial share of this capital originated from foreign investors, with approximately 40% of assets under management coming from overseas sources.
In his letter to Trump Jr, firm co-founders Omeed Malik and Christopher Buskirk, and other recipients, Raskin characterised the transformation as suspicious.
Two years ago, 1789 Capital was a struggling venture capital firm that earned consistently disappointing results by serially investing in total market flops. With Don Jr's new leadership role, 1789 Capital has developed an uncanny ability to identify companies that are about to receive massive influxes of cash from the federal government or to benefit from significant changes in federal policies and regulations. They say there is no such thing as a sure thing in investing, but this is about as close as you can get.
Raskin went further in his assessment, stating that
it is now impossible to believe that the firm's astonishing growth and success are due to anything other than insider political influence and thoroughgoing corruption.
What specific investments raised concerns?
Raskin highlighted several transactions that he argued demonstrated a pattern of well-timed investments benefiting from government action. In August 2025, 1789 Capital invested millions of dollars in Vulcan Elements, a rare earth materials company. Months before that investment, Vulcan Elements had announced it had secured several government contracts. Subsequently, in November 2025, the Pentagon committed a $620m direct loan to the company, while the Department of Commerce awarded it a $50m grant under the Chips and Science Act, legislation originally signed by former president Joe Biden.
This was an amazing turn of events when the Trump Administration decided to pump over half a billion dollars into an unproven startup company, Raskin wrote in reference to the Pentagon loan.
Separately, House Democrats Jared Huffman and Robert Garcia, both members of the committee overseeing mining laws, sent their own letter this month targeting Vulcan Elements specifically. They requested the names of 1789 Capital contacts involved in the government investment process behind the Pentagon loan commitment.
The firm has also acquired a stake in Anduril Industries, a major military contractor founded by Trump ally and donor Palmer Luckey. During Trump's first year in office, Anduril doubled its revenue—a 100% growth rate. The company has received billions in government contracts over the past year.
What conflicts of interest have been identified?
In July 2025, President Trump made public comments suggesting his children possessed advantages in their business dealings.
I tell my kids, 'stay away', Trump said at the time.
But they also have a life. You know, they were doing business long before I ever thought of running for president.
Trump Jr has disputed suggestions of impropriety. In an interview last month, he stated that he speaks with his father, the president,
every few weeks, and that he never discusses business matters with him. He also emphasised that as a private citizen, he holds
no policy position and no role within the administration whatsoever.
However, ethics concerns have been raised about the overlap between 1789 Capital's investments and Pentagon advisory roles. Earlier this month, reporting revealed that two appointments to the Defense Policy Board, a key Pentagon advisory body, include individuals with ties to 1789 Capital. One of these appointees, Blake Masters, sits on the boards of three ventures connected to 1789 Capital. Both men now advise the Pentagon on the defense-technology sector in which those companies operate.
Additionally, Andreessen Horowitz, one of Silicon Valley's largest venture capital firms, co-invests in three defense contractors alongside Trump Jr's firm, creating further potential alignment of interests.
Concerns about potential conflicts have been raised previously. reported in September 2025 that ethics specialists identified potential conflicts because Trump Jr was a partner while his father was president, and Democratic senators raised conflict-of-interest concerns in January 2026 about Pentagon contracts and loans tied to companies associated with Trump Jr.
What records are being demanded?
According to the formal records request from Raskin's office, 1789 Capital must provide a comprehensive list of its portfolio companies, all communications with federal officials, records documenting government actions that have affected its investments, and due-diligence materials for portfolio companies. The firm has also been directed to preserve communications with Trump administration officials, including messages sent through encrypted applications.
What happens next?
The 9 September 2026 deadline set by Raskin's letter represents the immediate next step in the investigation. However, Democrats currently hold the minority position on the judiciary committee, which limits their subpoena power without Republican support. The Vulcan Elements inquiry, led by Huffman and Garcia, sought documents from the company following scrutiny of its Pentagon loan and investment timeline, though no public hearing date has been specified.
Key Facts:
- 1789 Capital's assets under management grew from $150m in 2024 to $3.5bn by May 2026, with approximately 40% from foreign investors
- The firm invested in Vulcan Elements in August 2025, months before the Pentagon committed a $620m loan and the Department of Commerce awarded a $50m grant to the company
- Two Defense Policy Board appointees have ties to 1789 Capital and now advise the Pentagon on defense-technology matters
- Democrats have set a 9 September 2026 deadline for 1789 Capital to provide records, though they lack subpoena power without Republican support
