What Happened
Rising Defense Budgets Drive Private Capital Deployment
The aerospace & defense sector continues to see significant M&A activity, driven by rising defense budgets, prime contractor divestitures, and government demand for AI-powered and autonomous platforms. According to Ropes & Gray LLP, this trend is global, with Europe’s acceleration in defense spending creating new opportunities for private capital deployment. The report highlights the need for sponsors to navigate unique structuring challenges and regulatory compliance costs, as well as the importance of diligence in deal execution. This was reported by Ropes & Gray LLP in their Aerospace & Defense M&A Report 2026.