Blackstone Commits $1 Billion to Launch Falcata Defense Technology Platform

Blackstone announced on October 1, 2026, the formation of Falcata, a defense technology company created by combining Applied Systems Engineering, Inc. and Technology Service Corp., with a capital commitment exceeding $1 billion in debt and equity. Falcata will focus on sensing, guidance, navigation and control technologies for interceptors used to counter drones, missiles and other aerial threats. The company said it plans to add more businesses to the platform over time. David Kaden, the Blackstone senior managing director leading its defense investments, said interceptor availability has been a choke point in the defense industrial base, with navigation and guidance systems among the highest-cost components. He said Falcata will integrate the two firms' technologies to deliver lower-cost navigation and guidance. Goldman Sachs & Co. LLC advised Blackstone, with Simpson Thacher & Bartlett LLP as legal counsel. Blackstone, which manages over $1.3 trillion in assets, said it had committed $20 billion to defense and aerospace over the prior five years.