Californian missile-making startup Castelion has closed a funding round exceeding $1 billion, co-led by Carlyle Group, JPMorgan Chase, and Andreessen Horowitz. The Series C investment comprises $800 million in equity and a $250 million revolving credit facility, raising the company's valuation to $13 billion. The fresh capital will fund production of Castelion's Blackbeard hypersonic missile and development of a larger hypersonic strike weapon and air-defence missile. Military leaders seek more hypersonic weapons to match China's growing arsenal, whilst the Pentagon requires increased production of traditional defensive systems like Patriot missiles. Castelion, founded by three SpaceX alumni, has invested roughly $250 million building a New Mexico production campus and is searching for a new factory site.

Carlyle reported second-quarter results that exceeded analyst expectations, with revenue of $1.11 billion beating estimates of $921.4 million. Adjusted earnings per share came in at $1.07, surpassing the $0.91 forecast. The private equity firm's strong performance was driven by its AlpInvest and Global Credit divisions. CEO Harvey Schwartz highlighted record distributable earnings in both units and robust capital returns to clients across multiple asset classes and regions. Operating margin declined to 22.3% from 40% in the prior-year period. The company's market capitalisation stands at $17.23 billion. During the earnings call, analysts questioned management about fundraising timelines, the MAI Capital acquisition rationale, compensation ratios, and growth prospects in defence and industrials. Schwartz indicated most flagship fund closings would occur over the next 24 months.

Prime Capital Financial has entered a strategic partnership with Carlyle through an approximately $600 million hybrid capital solution that includes a minority ownership investment in the independent wealth management firm.