1789 Capital Seeks $3 Billion for Second Growth Fund, Bloomberg Reports

Investment firm 1789 Capital is in discussions to raise $3 billion for its second growth fund, according to a Bloomberg report citing a person familiar with the matter. The firm, which counts Donald Trump Jr. as a partner, has already secured commitments for $2 billion of that target from existing backers.

Fundraising and Strategy Shift

The fundraising effort for the new vehicle remains ongoing, and the final amount could exceed the current target, the people said. This new fund signals a strategic shift for 1789 Capital, which intends to make fewer but larger investments in promising startups. The firm also plans to take the lead on more of its funding rounds, a move that would give it greater influence over its portfolio companies.

A recent example of this strategy is 1789's reported talks to lead a funding round for the prediction markets platform Polymarket. The firm is poised to invest $300 million in a round expected to total around $1 billion, according to Bloomberg's sources.

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Rapid Growth and Performance

Founded in 2022, 1789 Capital has seen its assets under management (AUM) grow to over $4 billion from just a few hundred million dollars in 2024, the year Trump Jr. joined the firm. Its investment focus has been on American companies in high-growth sectors such as artificial intelligence and defense.

The firm's portfolio includes stakes in Anduril Industries Inc. and several of Elon Musk’s ventures, including X, xAI, and SpaceX. Its first growth fund, launched in 2023, delivered returns of more than 200% through the end of June, driven by significant markups in its private holdings and public listings for companies like Cerebras Systems Inc., the report said. In August, the firm also raised $1.2 billion for a separate fund focused on real estate development in Sun Belt states.