Private Equity Sits on Billions While Weighing Contractor Buys

Private equity firms with a history of buying contractors are making plans for what to do with billions in new fundraising even as deal activity among defense and government services firms drops.

While buyer demand remains high, the trick is finding companies that are looking to sell and haven’t yet after robust merger rushes over the last few years.

“There are a ton of new entrants and new private equity groups created to be in these sectors. And the ones that had been created are raising much larger funds,” Kate Troendle, KippsDesanto & Co Managing Director said in an interview. ...