PE Hub | 5 Reasons Private Equity is Betting Big on U.S. Naval Investments
Originally published by PE Hub on August 4, 2026.
The aerospace and defense sector has seen increased interest from private equity in recent years, and Navy-focused targets have seen the sharpest uptick in 2026. Five key trends are drawing private equity interest, including a historic rebuilding of the domestic Naval industrial base, a fragmented supplier base, a large Naval budget, high barrier to entry and the opportunity to modernize the fleet through AI and technology solutions.
Ryan O’Toole and Eric Cartier, Managing Directors and co-heads of aerospace and defense, shared their insights with PE Hub.
“Within the Navy procurement offices, price is not the primary decision driver,” said Ryan. “This affords acquirers the comfort of knowing that a business will typically not find themselves in a situation of having their work be ‘bid down’ during their ownership. This ‘stickiness’ is a sought-after attribute and driver of M&A value.”
Summary
- Lincoln International’s experts share insights with PE Hub into rising private equity investment in U.S. Navy-focused assets.
- Sign up to receive Lincoln's perspectives
