Blackstone has formed Falcata, a defense technology company created by combining Applied Systems Engineering and Technology Service Corp. after their acquisition by Blackstone. The platform has received more than $1 billion in debt and equity commitments, while the new report describes the venture as backed by $1 billion. Falcata will initially focus on interceptor technology for missiles, drones and other aerial threats, including navigation and guidance systems needed for affordable production at scale. Blackstone plans additional acquisitions and has invested $20 billion in defense and aerospace transactions over the past five years. BX shares are down 25% in 2025, although analysts maintain a Moderate Buy consensus with a $145.50 average target, implying 30% potential upside; the most bullish target is $184.