US Army courts private equity firms for $150 bln infra overhaul - FT

Published 21/10/2025, 08:04
© Reuters.

Investing.com-- The U.S. Army has approached leading private equity firms including Apollo, Carlyle (NASDAQ:CG), KKR (NYSE:KKR) and Cerberus for proposals to help fund a $150 billion infrastructure modernisation, the Financial Times reported on Tuesday.

Army Secretary Daniel Driscoll and Treasury Secretary Scott Bessent hosted a forum last week with around 15 major buyout groups, inviting “meaty” investment ideas to finance projects such as data centres and rare earth processing facilities, the FT report said.

Driscoll told the newspaper the Army was seeking “clever financing models” to offset a $135 billion budget shortfall in its infrastructure plan. He suggested deals could involve the federal government swapping land for computing capacity or critical minerals output, rather than cash payments.

The outreach marks an unprecedented effort to integrate private capital into U.S. national security, following President Donald Trump’s August executive order expanding access to private assets for U.S. retirement plans, the report stated,

Driscoll, a former investment banker, said the initiative — dubbed the Army Transformation Initiative — aims to equip the service with new technology and rebuild ageing facilities. He expects initial deals to be finalised by year-end, according to the FT report.

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