The Financial Times reported on its front page that the U.S. Army is seeking support from private investment companies to drive a full upgrade of 150 billion dollars in equipment, and the Pentagon is seeking funding, with private equity groups being asked to participate in major projects, including data centers and rare earth projects.

The U.S. Army has challenged private equity groups, including Apollo, Carlyle, KKR, and Cenovus, to propose "substantial" strategic projects to help the military fund a major infrastructure overhaul worth 150 billion dollars.

The U.S. Army Secretary Daniel M. Driscoll and Treasury Secretary Scott B. Becker met last week with about 15 Wall Street acquisition companies to discuss potential deals. Driscoll told the Financial Times that he called these investors to say: "Hey, we have so many underutilized assets in our armories and warehouses... what kinds of deals can we collaborate with you and invite you to participate in?" The highest-ranking civilian official in the Army said he asked these groups to develop the Army's infrastructure needs. "We actually just want substantial projects." These proposals are the latest example of the Trump administration's collaboration with the private capital industry, which is 13 trillion dollars in size, and also an unprecedented effort to involve some of the biggest Wall Street investors in U.S. national security affairs.

Driscoll said the projects could include data centers and rare earth processing facilities, and the government may provide land. He said, "You don't pay for the land with cash, but with computing power." A participant said the idea includes having private capital groups build data centers on military bases and sign lease agreements with the government to speed up construction and reduce costs. Driscoll's search for funding reflects the challenges he faces in modernizing aging military equipment.

This minister, who has a background in investment banking, told the Financial Times that his budget for military infrastructure over the next decade is 1.5 billion dollars, but the actual need is 150 billion dollars. "We're in a dilemma, and we won't be able to get out without creative solutions proposed by external parties." A participant said the forum was "serious and wide-ranging."

Another person said, "It's clear that Bensons and Driscolls are serious about cooperating with private capital." Driscoll said he will meet with investors again in New York in a few weeks, aiming to conclude several deals by the end of the year. People familiar with the matter said other participants included Avenue Capital, BDT&MSD, and several large family offices. Apollo, Avenue Capital, BDT&MSD, Carlyle, Cenovus, and KKR all declined to comment.

Original: www.toutiao.com/article/1846629666955340/

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