Private equity dealmaking in aerospace and defense drops 32% in Q2, PitchBook says

By -

Across the private markets, one of the more familiar stories goes something like this: defense and aerospace are booming. 

It makes sense—as companies like Anduril (last valued at $30.5 billion) appear more important than ever, and newer entrants to the sector attract capital and gain traction. (For example, Sarconic, which is building autonomous vessels, raised $600 million in a Series C in February.) But recent numbers tell a more complex story for the space as a whole, especially when it comes to private equity.

PE–backed deals in the sector fell sharply in Q2: PitchBook data shows a 32% year-over-year decline in aerospace and defense deal count, a drop the research platform links to tariffs and broader geopolitical uncertainty. The pullback is as stark as it is surprising—particularly given a 61% decline in defense deal count for Q2. 

“We are also surprised by the slowdown in defense dealmaking,” Jim Corridore, PitchBook’s senior industrials analyst, told Fortune via email. “We think the new $1 trillion defense budget, NATO commitments to raise defense spending, and ongoing geopolitical issues all support strong defense spending, which should continue to encourage deals. We just think tariffs and the new defense budget, with shifting priorities, may have slowed decision-making in Q2.”

And Corridore emphasized that the overall outlook remains bright, and that this data ultimately represents a bump in the road more than a crisis. He expects activity to rebound in the second half of 2025. 

“Aerospace and defense funding remains strong,” he wrote to Fortune. “There’s still a lot of VC and PE interest in the space. Many exciting new technologies are getting funded, and there is a healthy pipeline of startups. We don’t see any stagnation or trouble ahead for defense tech.”

You’re invited…In just a few weeks at Brainstorm Tech, we’re hosting a powerhouse defense tech panel with leaders from Anduril, Vannevar Labs, and Allen Control Systems. That’s just one highlight of our annual flagship retreat in Deer Valley. We’ll also hear from Oura’s Tom Hale, DoorDash’s Tony Xu, and Wyclef Jean—plus many more. I’ll be leading several VC-focused conversations, including a Future of Venture Capital Insight Exchange featuring Felicis, Gradient, Eclipse, Canvas Prime, Sapphire, and others. You can learn more about the program here, and if you’re interested in joining us, you know where to find me.

See you Monday,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
Submit a deal for the Term Sheet newsletter here.

Joey Abrams curated the deals section of today’s newsletter. Subscribe here.

This story was originally featured on Fortune.com



from Fortune | FORTUNE https://ift.tt/xW4ILbw
via Financial Mindset

Comments

Post a Comment

Popular posts from this blog

Gen Z and boomers are driving a leadership vacuum that’s threatening productivity and morale at work

By -
A perfect storm may soon hit leadership in corporate America , with baby boomers retiring and Gen Z unenthused about climbing the career ladder. However, experts argue that slashing development budgets and stereotyping young people as lazy is only making matters worse. Who wants to be the boss anymore? According to the headlines, not Gen Z.  The bright young minds of tomorrow are just not striving to climb the corporate ladder as much as their older colleagues, but it’s not coming from a lack of interest in management. Instead, a generational disconnect in how leaders should wield their power is to blame. Gen Z employees are concerned about leadership’s basic interpersonal skills, and nearly half of them want better communication and teamwork training, according to a recent Korn Ferry report . Major companies like Amazon are cutting middle manager roles , leaving early-career employees left without a model of leadership pathways. About 41% of employees say that their organ...
Read more

Gold prices should hit $4,000 as U.S. deficits may overshadow the Israel-Iran conflict, BofA says

By -
Image
Wars and geopolitical conflicts typically aren’t long-term growth drivers for gold prices, according to analysts at Bank of America , which sees the precious metal reaching $4,000 an ounce over the next year. Despite the Israel-Iran conflict heating up, the outlook for gold is likely to be swayed more by the U.S. budget deficit. Gold is often seen as a safe-haven asset during times of global turmoil, but wars and geopolitical conflicts typically aren’t long-term growth drivers for gold prices, according to analysts at Bank of America. In fact, gold has actually dipped 2% in the week since Israel began its air strikes on Iran. Meanwhile, tensions are ramping as reports Saturday said B-2 stealth bombers are headed over the Pacific. That’s as President Donald Trump weighs involvement in the conflict, potentially with bombers dropping massive “bunker busters” on heavily fortified Iranian nuclear sites. In a note on Friday, BofA analysts said they expect gold prices to reach $4,000 p...
Read more