#United States #Colorado Springs #ONE Bow River #National Defense Fund #Bluestaq

ONE Bow River Successfully Launches $500 Million National Defense Fund

ONE Bow River, an alternative asset management firm based in Colorado Springs, has made significant strides in the realm of private equity with the successful closing of its inaugural fund, the ONE Bow River National Defense Fund I. This new fund has garnered an impressive $500 million in committed capital, drastically exceeding its initial target of $250 million and surpassing an intermediate goal of $400 million.

The journey isn't without hurdles; the fund awaits approximately $10 million in SBA (Small Business Administration) approval linked to Limited Partner commitments before it can commence its full rollout. The impressive oversubscription is a testament to the growing interest and urgency surrounding defense-related investments, especially in the current national landscape.

Meeting Critical Technology Needs

The primary objective of the ONE Bow River National Defense Fund is to address pressing challenges in national defense through strategic investments in data solutions. With a clear focus on aiding government entities in bolstering their defense capabilities, the fund's mission encompasses a broad spectrum of private, lower middle-market firms that are dedicated to developing innovative technology solutions. The experienced team behind the fund blends expertise from private equity, defense technology, and military backgrounds to ensure a comprehensive approach to investment.

In a statement, Kevin O'Neil, the Chief Investment Officer of ONE Bow River, expressed gratitude for the robust backing from investors during a challenging fundraising environment. His sentiments reflect a wider confidence in the fund's strategy and implications for national security.

Largest Fund in the SBICCT Initiative

The ONE Bow River National Defense Fund stands out as the largest fund within the Department of Defense's (DoD) first cohort under the Small Business Investment Company Critical Technologies (SBICCT) Initiative, a program designed to reinforce U.S. national and economic security by fostering private investments in critical technology areas. Approved in January 2025, this initiative aims to attract significant capital towards essential technologies vital to the Department of Defense and its operations.

The fund received its SBIC license in October 2024, marking it as unique, being the only licensed SBIC fund based in Colorado.

First Investment in Bluestaq, LLC

ONE Bow River has already initiated its investment strategy by securing a minority stake in Bluestaq, LLC, committing around $50 million. Bluestaq is recognized for its advanced data management systems that serve critical U.S. governmental agencies and military branches through its Unified Data Library platform. The firm has also recently been awarded a healthcare contract, demonstrating its capability to adapt its solutions for diverse applications beyond defense.

The partnership with Bluestaq promises to enhance their impact on national security endeavors, emphasizing the importance of effective data management solutions across all branches of the military.

Catalyst Campus: A Platform for Innovation

The Catalyst Campus for Technology and Innovation, located in Colorado Springs, is a pivotal center for fostering defense technology companies and serves as a crucial sourcing mechanism for the ONE Bow River National Defense Fund. Launched in 2015 by Kevin O'Neil, this non-affiliated non-profit organization acts as a business incubator, nurturing entrepreneurs who develop groundbreaking technological solutions tailored to meet DoD challenges.

Through training, workshops, and collaborative efforts, Catalyst Campus aims to bridge the gap between technology providers and investment opportunities, thus accelerating the growth of viable defense solutions.

Community Impact

Notably, the success of the ONE Bow River National Defense Fund is viewed as a significant milestone for Colorado Springs. As home to various military bases and commands like the US Space Command and the Air Force Academy, the area is intricately tied to national defense operations. Leaders from the city, including Mayor Yemi Mobolade and Johnna Reeder Kleymeyer, President, and CEO of the Colorado Springs Chamber & Economic Development Corporation, have commended the fund for its innovative investment model and the substantial impact it is set to make on the local economy and national security landscape.

In conclusion, the ONE Bow River National Defense Fund represents not only a financial achievement but also a strategic effort to enhance the national defense infrastructure through innovation. As it embarks on this journey, the collaboration between public and private sectors may very well yield solutions that address some of the most pressing defense challenges today.