It has been confirmed that Donald Trump Jr., the eldest son of U.S. President Donald Trump, and Eric Trump, his second son, are assisting in the launch of an investment firm aimed at acquiring U.S. manufacturers. As they could be direct beneficiaries of President Trump's major economic policy focus on 'reviving American manufacturing,' a controversy over conflict of interest involving the Trump family is likely to resurface.
According to foreign media, including The Wall Street Journal and the Financial Times, on the 4th (local time), the two sons of President Trump have been supporting the listing of 'New America Acquisition I Corporation' (New America), a special purpose acquisition company (SPAC). Reports suggest they are in the process of raising $300 million (approximately 400 billion won).
A SPAC is a type of special purpose corporation established solely for the purpose of mergers and acquisitions (M&A). It is characterized by the ability to raise capital through an initial public offering (IPO) and subsequently acquire a private corporation to facilitate its indirect listing on the stock market.
According to a report submitted to the U.S. Securities and Exchange Commission (SEC), Trump Jr. and Eric Trump have been named advisors on the advisory board of New America, with each allocated 2 million shares and 3 million shares, respectively. These shares can be converted into common stock once mergers with companies acquired by New America are completed, which is expected to result in capital gains worth millions of dollars.
New America is reportedly specifying the conditions for acquisition targets as 'companies that can receive policy incentives such as federal and state government subsidies, tax credits, and priority procurement programs.' Accordingly, Trump's sons are actively seeking out companies with a high possibility of benefiting from these policies.
Industry sources say potential acquisition candidates include companies based on manufacturing infrastructure such as data centers and drones, and some cryptocurrency-related companies are also being discussed. One official noted, 'We aim to invest in outstanding American corporations and will realize the value of patriotic economics through acquiring companies with clear technological capabilities and growth potential.'
The underwriting for New America's listing is handled by Dominari Securities, which is headquartered in Trump Tower, and D. Boral Capital, an investment bank based in New York. Notably, Dominari Securities is where Eric Trump and Trump Jr. are also serving as advisors. Following the revelation of this fact, the stock price of the parent company, Dominari Holdings, skyrocketed by about 580% in just six weeks.
D. Boral Capital previously supported the listing of President Trump's media company, Trump Media & Technology Group, in 2022.
Some see the establishment of New America as an attempt to expand the Trump family's influence in the capital markets. Concerns over conflict of interest are being raised as the president's sons become directly and indirectly involved as investors in key beneficiary industries of the manufacturing revival policies initiated during his presidency.
A source in the financial industry pointed out, 'President Trump vigorously pushed for the 'Buy American' policy, restructuring supply chains, and strengthening digital assets during his administration. Now a structure is forming where the president's family is directly benefiting in areas that may receive advantages from those policies.'