Private Equity's Defense Deals Could Come Under Increased Scrutiny After Midterms

Congressional Investigations attorney Arya Hariharan was quoted in a Federal News Network article examining how private equity firms with interests in the defense sector could face increased congressional scrutiny following the November midterm elections. The article explored growing concerns among lawmakers about the effects of private equity ownership on defense contractors, including questions related to supply chain stability, competition, financial solvency and national security. Arya explained that although consolidation in the defense industry is not a novel issue, private equity's market entrance has renewed interest in understanding how defense investments are structured and whether they present potential risks. She also said lawmakers will likely examine new defense-related contracts and partnerships and relationships between private equity firms and government officials as federal investment initiatives continue to expand.

"Consolidation amongst defense contractors is not a new concern, but the involvement of private equity firms has injected, rightly or wrongly, a perceived risk to supply chain stability," she commented.

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