KCGI, a domestic private equity fund (PEF) manager, will invest $50 million (about 74 billion won) in the U.S. drone company "Pauerus." This is the first investment from the blind fund KCGI recently raised.
KCGI said on the 11th that it decided to make a strategic equity investment in Pauerus through the "KCGI Innovation Growth ESG PEF." Pauerus is a U.S.-based heavy-lift drone specialist with technology that can carry up to 1,000 pounds (about 430 kilograms). Centered on agricultural control drones, it is developing its business with the commercial market, including logistics, as its main target.
Donald Trump Jr. and Eric Trump also joined the investment in Pauerus. They did so through the Trump family's venture capital (VC) American Ventures and the drone parts company Unusual Machines. Unusual Machines is a company where Trump Jr. is a shareholder and advisor.
KCGI will secure the position of the No. 2 shareholder of the merged entity. The largest shareholders will be Chief Executive Officer (CEO) Andrew Fox, Chief Operating Officer (COO) Brett Velicovich, and Chief Technology Officer (CTO) Ziv Marom, the founding team of Pauerus. According to KCGI, Trump's two sons are simple investors who will not take part in management.
KCGI executed the investment, focusing on Pauerus' competitiveness. In November, it invited the management to Korea to review potential cooperation with about 20 domestic drone, aviation, and parts corporations. Pauerus had initially planned to outsource production to China, considered a drone powerhouse, but is said to have shifted to cooperating with Korean parts and manufacturing corporations. KCGI said it plans to work with Pauerus to build a domestic drone manufacturing base and consider follow-on investments if needed.
Pauerus is a drone system development corporation co-founded by Brett Velicovich, a former member of the U.S. Army special operations forces, and Chief Executive Officer (CEO) Andrew Fox. It has recently been pushing to expand its business by acquiring drone and unmanned system corporations such as Kaizen Aerospace, Tandem Defense, and Agile Autonomy in succession.