Phelan is the first service secretary pick announced by the president-elect for his second term in the White House.

President-elect Donald Trump has tapped an art collector and GOP megadonor with no military experience to lead the U.S. Navy, he announced on Tuesday.

Phelan is the founder and chairman of Rugger Management, a private investment firm based in Palm Beach. He also co-founded MSD Capital, a private investment firm for Michael Dell, the founder of Dell Technologies.