Carlyle's (CG) funds participated in Castelion's $1 billion series C funding round to accelerate production of its Blackbeard low-cost hypersonic strike missile and expand into longer-range strike and defensive systems, Castelion said Wednesday.

The round includes $800 million in equity financing and $250 million in committed financing for a revolving credit facility, valuing Castelion at $13 billion. The equity financing was co-led by JPMorganChase's Strategic Investment Group, Andreessen Horowitz and Carlyle funds.

Castelion said it has secured more than $500 million in US military contracts over the past 18 months, with Blackbeard targeted for fielding in 2027.

The company plans to invest hundreds of millions of dollars to expand manufacturing capacity at its 1,000-acre Project Ranger campus in New Mexico and accelerate development of a longer-range precision strike weapon.

Carlyle shares were up 1% in premarket activity.