KCGI makes surprise investment in U.S. drone company backed by Trump’s two sons... Why? [fn Market Watch]

[Financial News] Korea Corporate Governance Improvement (KCGI), a domestic private equity fund (PEF) widely known as the "Kang Sung-boo Fund," has made a surprise investment in a U. S. -based drone company in which former U. S.
President Donald Trump’s two sons are major shareholders, drawing intense interest to the move. Market watchers also note that KCGI, which has already hit the jackpot in South Korea’s defense sector through its investment in LIG Nex1, is now betting on the growth potential of the U. S. drone market.
According to the investment banking industry on the 10th, the KCGI Innovation & Growth ESG Fund, a blind fund established by KCGI, has selected U. S. drone systems developer Powerus as its first investment and injected about 50 million dollars (approximately 75 billion won).
Major foreign media outlets reported that Powerus plans to go public through a merger with Oryeus Greenway Holdings, which is listed on the Nasdaq Stock Market (NASDAQ). This deal also involves American Ventures, a venture capital firm linked to Donald Trump’s two sons, Donald Trump Jr. and Eric Trump.
Unusual Machines Inc. , in which Donald Trump Jr. is a shareholder and also serves as an advisor, is participating as well.
Oryeus Greenway Holdings stated, "KCGI will help Powerus gain access to allied supply chains, reduce its dependence on non-allied countries, and contribute to expanding manufacturing capacity in the United States. " Meanwhile, a source in the investment banking industry familiar with the deal said, "The importance of drones has been rising rapidly, yet the drone industry and related companies in the United States of America (USA) are still at a relatively early stage, so it appears KCGI is betting on the sector’s future growth potential. " The source added, "Powerus is known to have strong technological capabilities, reportedly able to carry a heavy payload of 430 kilograms for up to five hours.
" The same source continued, "However, there is currently no drone production base in the USA, so there are plans to establish a drone manufacturing hub in South Korea over the mid to long term, and KCGI is understood to have played a key role in this process. " He explained, "As a major shareholder and strategic investor, KCGI is effectively joining forces with a defense company in which Trump’s sons are shareholders, pursuing a win–win strategy. " Another investment banking industry insider commented, "South Korea has many manufacturers of drone and space-aerospace components, but due to a lack of orders, growth has been somewhat sluggish.
" He added, "If a U. S. company with abundant order volume teams up with South Korean firms that have strong technology but few orders, this cross-border defense deal could generate significant synergies, so expectations are high.
"
[Financial News] Korea Corporate Governance Improvement (KCGI), a domestic private equity fund (PEF) widely known as the "Kang Sung-boo Fund," has made a surprise investment in a U. S. -based drone company in which former U. S.
[Financial News] Korea Corporate Governance Improvement (KCGI), a domestic private equity fund (PEF) widely known as the "Kang Sung-boo Fund," has made a surprise investment in a U. S. -based drone company in which former U. S.
kakim@fnnews.com Kim Kyung-a Reporter