Paul Abrahimzadeh, Partner at 1789 Capital | Investing in America's Future: AI, Defense, and Beyond

And how do you see your investment contributing to the economic landscape in the US, given that the fund is very much focused on the whole idealism of the American dream about the US prosperity and all this ideology there?

Yeah, well, I think Don Jr. and me did a great job at FII just now articulating our economic super-cycle thesis.

We believe that the president is actually in his economy.

So a couple of key points.

Number one, when he came on this trip to the Middle East, starting in Riyadh in April, he left the region with $2 trillion of foreign direct investment committed from the major players in the Middle East.

He then followed up with $1 trillion from Europe and then $1 trillion from Asia.

It now stands at over $8 trillion of committed foreign direct investment since the start of this administration, so in less than 12 months.

If that were to take 10 years to be invested in the US economy, that's $800 billion per year.

That's roughly 2.5 percentage points of GDP growth on top of the 2% baseline.

There's roughly a $360 billion tariff run rate that is tied up right now with Supreme Court.

Once that's released, that's another 1% of GDP growth.

So very simply, we think now is the right time to be deploying because we're deploying with the U.S.'s trending at 2% GDP growth.

We think into next year, as we've heard from Secretary Bassett and Secretary Letnick, there's a clear path to 4% to 5% GDP growth, which is exceptional.

It's better GDP growth than we've had, excluding a few periods post-financial crisis and post-pandemic.

But it is a true sea change in terms of economic growth, which will lead to earnings growth, which will frankly take these multiples that people are talking about being peak multiples in the S&P and NASDAQ.

It will very likely make them much more reasonable when you've got more normalized earnings based on this increase in GDP.

So those are some of the steps that the administration is taking that are going to benefit the overall economy.

In our portfolio, we invest in AI.

The president signed 100 executive orders benefiting AI, again, in eight or nine months.

It's an incredible pace.

And that is why you see so many tech founders in the Valley backing the administration because they're deregulating in creating an environment in the U.S. where technology can flourish.

The last thing, defense tech, which is a pillar of our portfolio, different from a lot of other growth equity funds, A, defense tech benefits the security of the United States.

It re-industrializes the economy because these companies like Anduril and Hadrian in our portfolio and soon to be Saildrum are manufacturing in the U.S.

But importantly, the president secured 5% commitment of GDP from NATO countries of additional military spending by NATO allies.

And most of those OEMs are going to be US primes that are manufacturing those military supplies.