Blackstone, the investment firm best known for making big bets in private equity and real estate, has launched a defense technology company to expand production of the sensors, navigation systems and guidance equipment used to intercept drones and missiles.
The new company, officially launched on October 1, 2026, is called Falcata, and combines Technology Service Corp. (TSC), which makes radar and missile seekers, with Applied Systems Engineering Inc. (ASEI), a developer of military navigation and flight-control systems.
Blackstone said the new company will help meet demand for more affordable defenses against weapons that can be deployed in large numbers.
Bloomberg reported that Blackstone committed more than $1 billion in debt and equity to the acquisitions, citing people familiar with the transaction. Blackstone did not disclose financial terms in its announcement.
The company takes its name from the curved falcata sword used in pre-Roman Iberia.
Falcata’s technology will include radar, target-seeking sensors, guidance electronics and systems that allow navigation without GPS. The company plans to invest in manufacturing capacity, engineering and recruitment. Brandon Wolfson will serve as CEO, with Jonathan Moneymaker as chairman.
David Kaden, who leads Blackstone’s defense investments, told Bloomberg that navigation and guidance equipment accounts for some of the highest costs in interceptors. Combining the two businesses is intended to make that equipment less expensive and more readily available.
Blackstone also expects to acquire additional companies for Falcata, Kaden said.
The deal adds to Blackstone’s investments in aerospace and defense. President Jon Gray said the firm has invested more than $20 billion in the sectors in the past five years, according to Bloomberg.
Its holdings include a stake in defense technology company Anduril through its private equity fund for wealthy investors.