Father wages war, sons bet on drones: Trump family deepens ties with U.S. defense sector

[The Financial News] The two sons of U.S. President Donald John Trump have entered a business targeting the Pentagon’s procurement market by investing in an American drone company. Korea Corporate Governance Improvement (KCGI), a Korean activist private equity manager, has also joined as an investor, drawing attention as this move coincides with a global reshaping of the defense and drone supply chain.
According to The Wall Street Journal (WSJ) and other outlets on the 9th (local time), U.S. drone company Powerus plans to list on the Nasdaq Stock Market (NASDAQ) within a few months through a merger with Aureus Greenway Holdings, a golf course holding company already listed on Nasdaq.
The deal involves American Ventures, an investment firm linked to Trump’s eldest son Donald Trump Jr. and his second son Eric Trump. Unusual Machines (UMAC), a drone components company where Donald Trump Jr. serves as a shareholder and adviser, has also joined as an investor. Dominari Securities, which has ties to the Trump family, is acting as the placement agent and deal manager for the private offering and related transactions.
Powerus is a developer of autonomous drone systems co-founded by former U.S. Army special operations soldier Brett Velicovich. Over the past six months, the company has acquired three small firms as it expands its aerial and maritime drone businesses. In the longer term, it aims to build production capacity for more than 10,000 drones per month.
This push is closely aligned with the U.S. government’s large-scale drone procurement policy. Through its plan to strengthen drone dominance, the United States Department of Defense (DoD) intends to invest about $1.1 billion, or roughly 1.6 trillion won, by 2027 to secure hundreds of thousands of U.S.-made drone systems.
At the same time, Washington is tightening regulations to reduce its reliance on Chinese-made drones. The Federal Communications Commission (FCC) is moving to ban the import of new models from Chinese drone manufacturers. This is seen as part of a broader policy to expand the domestic drone manufacturing base in the United States.
To bolster its technology, Powerus is also seeking cooperation with drone companies in Ukraine. Velicovich stated that he is considering acquiring Ukrainian firms or securing technology licenses so that production can take place within the United States.
Currently, Ukrainian drone manufacturers face multiple regulatory hurdles when exporting their products. The U.S. military is likewise trying to adopt Ukrainian drone technologies, but direct imports are difficult because of rules that prioritize the purchase of domestically made weapons.
Under the merger deal, Korea’s KCGI is expected to invest $50 million through its Innovation and Growth ESG (environmental, social and governance) Fund.
In a regulatory filing, Aureus Greenway Holdings Inc. (AGH) explained, "Korea Corporate Governance Improvement (KCGI) will help Powerus reduce its dependence on non-allied countries and strengthen its manufacturing capabilities in the United States by supporting access to allied supply chain networks."

km@fnnews.com Reporter Kim Kyung-min Reporter