Stratolaunch has completed a significant capital raise aimed at rapidly expanding its hypersonic test and flight services, bringing Elliott Investment Management on board as a new investor alongside existing backer Cerberus Capital Management. The funding is intended to accelerate production, increase flight cadence, and strengthen the company’s role within the U.S. defense industrial base as demand for hypersonic capabilities grows.
Image credit: Stratolaunch Systems
The California-based firm positions itself as a hypersonics technology accelerator, offering end-to-end testing and flight services in support of U.S. and allied national security requirements. Stratolaunch says it has developed the world’s first commercial, autonomous, reusable hypersonic aircraft, a system that has already completed multiple successful flights validating its operational concept.
Stratolaunch’s portfolio spans vehicle design and manufacturing, digital modeling, flight testing, and operations, with an emphasis on cost control, rapid schedules, and reliable delivery for government and industry customers. With the new capital, the company plans to expand production capacity for its hypersonic vehicles, increase the frequency of hypersonic flight operations, and pursue additional carrier aircraft to support more regular and operationally relevant demonstrations for U.S. defense agencies and partners.
“At a time when speed, scale, capability, and execution matter more than ever, this investment enables Stratolaunch to move faster and think bigger,” said Zachary Krevor, president and CEO of Stratolaunch. “The United States does not have time for incrementalism. We’re building the infrastructure, vehicles, and flight capacity required to deliver hypersonic capability at a pace that matches the urgency of today’s threat environment.”
Elliott’s entry as a new equity partner is expected to help Stratolaunch expand its footprint in the growing hypersonic test market. David Kerko, head of global private equity at Elliott, said the firm looks forward to working with Cerberus and Stratolaunch’s leadership to extend the company’s market position and support continued expansion in hypersonic testing services.
The investment aligns with current U.S. administration guidance urging defense contractors to prioritize warfighter needs, accelerate fielding of new capabilities, and reinforce the domestic industrial base through faster execution. Stratolaunch frames its expanding infrastructure and flight operations as a direct response to that call, arguing that increased hypersonic test capacity is essential to keep pace with emerging threats.
“Credibility comes from demonstrated capability delivered at scale,” Krevor said, noting that the company has already proven its hypersonic technology and is now focused on delivering that capability more frequently. He also welcomed Elliott as a new partner while highlighting Cerberus’ continued backing of Stratolaunch’s hypersonic mission.
Cerberus, which invested earlier in Stratolaunch’s current phase, described the move as part of a long-term strategy focused on critical defense capabilities. Michael Palmer, Cerberus’ co-head of supply chain and strategic opportunities, said the firm has emphasized disciplined execution and building an enduring business aligned with national priorities, calling the expanded partnership a step toward meeting the urgent need for scaled hypersonics.
The transaction involved several financial and legal advisors. Citigroup served as exclusive financial advisor to Stratolaunch, with Davis Polk & Wardwell LLP acting as legal counsel to Cerberus. BofA Securities advised Elliott, while Debevoise & Plimpton LLP served as Elliott’s legal counsel.
Stratolaunch says its mission is to advance high-speed aerospace technology through the design, manufacture, and operation of vehicles built specifically for demanding hypersonic test regimes. As flight milestones continue and its test fleet grows, the company is positioning itself as a central player in expanding hypersonic test capacity for the United States and its allies.
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