ONE Bow River has closed its inaugural private equity fund, ONE Bow River National Defense Fund I LP (Fund I), with $500 million in committed capital.
The new fund, pending SBA approval of approximately $10 million in limited partner commitments, was oversubscribed, exceeding its initial $250 million target and surpassing its $400 million fundraising goal.
ONE Bow River was formed in June 2024 by The O’Neil Group, a Colorado Springs-headquartered single-family office with approximately $600 million in assets under management, and Bow River Capital, a Denver-based private equity firm.
ONE Bow River invests in U.S.-headquartered companies with revenues between $5 million and $50 million and EBITDA ranging from $1 million to $10 million. The firm specializes in the defense sector, with a particular focus on companies that provide data technologies with high barriers to entry under existing U.S. Department of Defense contracts.
The firm’s investment team, based in Colorado Springs, includes professionals with expertise in private equity, defense technology, and military operations, including Chief Investment Officer Kevin O’Neil and Senior Managing Director Steve Joanis. Colorado Springs is home to several key military installations, including Schriever and Peterson Space Force Bases, North American Aerospace Defense Command (NORAD), U.S. Northern Command, U.S. Space Command, Fort Carson, and the United States Air Force Academy.
“In one of the most challenging fundraising environments in recent memory, we are thrilled with the overwhelming support we’ve received from investors on our first national defense fund,” said Mr. O’Neil. “This milestone underscores the confidence in our team and the appeal of this particular strategy at this time in U.S. history.”
In January 2025, the Department of Defense (DoD) and the U.S. Small Business Administration (SBA) approved Fund I as one of 17 funds in the Small Business Investment Company Critical Technologies Initiative (SBICCT). This program encourages private investment in key defense technologies to support U.S. national and economic security. Fund I, which received its SBIC license in October 2024, is the largest fund in SBICCT’s first group and the only one based in Colorado.
“We are honored to be part of the SBICCT Initiative’s first cohort and intend to make a positive impact on the DoD’s CTAs effort,” said Mr. Joanis. “We look forward to working collaboratively with the Department of Defense and the Small Business Administration to identify solutions that keep the U.S. and our warfighters safe.”
In December 2024, Fund I closed its first transaction with a $50 million non-control investment in Bluestaq, a Colorado Springs-headquartered provider of data integration, cybersecurity, and software development for defense and government agencies.
Bluestaq is known for developing the Unified Data Library (UDL) under a Space Force contract. The UDL serves as a centralized hub for data access and distribution, combining data from commercial and military satellites to enhance space situational awareness (SSA). SSA involves tracking, identifying, and analyzing space objects such as satellites, spacecraft, and debris to determine their positions, orbits, and characteristics. The UDL is widely utilized by over 3,500 organizations—including businesses, government and military agencies, and the intelligence community—in 25 countries to prevent orbital collisions and support national security operations.
In December 2024, Bluestaq was awarded its first healthcare contract to advance a digital front door initiative in partnership with the Defense Health Agency (DHA) and the Defense Innovation Unit (DIU). This project aims to improve healthcare access for military families by creating a more integrated system.
ONE Bow River did not use a placement agent for this fundraise. Winston & Strawn provided legal services for the fundraise.
© 2025 Private Equity Professional | March 18, 2025
