Taproot Backs Altair Industries to Target Defense & Reshoring Boom

SUMMIT, N.J. and NEW YORK – February 26, 2026 – In a move that underscores a growing trend toward specialized private equity, alternative asset manager Taproot Capital has announced a strategic partnership with Altair Industries, a newly-formed firm targeting North America's aerospace, defense, and mission-critical industrial sectors.

The alliance provides institutional backing for Altair, a private equity firm founded in 2025 by veteran investors David Waxman and Michael Livanos. It positions the new entity to execute a highly specific investment thesis focused on the powerful convergence of manufacturing reshoring, expanding defense budgets, and rapid technological change. While financial terms of the deal were not disclosed, the partnership highlights a strategic shift in private markets, where deep sector expertise is increasingly seen as the key to unlocking value.

The Rise of the Specialist Investor

Taproot Capital has carved out a distinct niche as an asset manager that seeds and supports emerging private equity firms. Rather than competing directly for deals, Taproot acts as a strategic partner, providing tailored capital, fundraising support, and operational infrastructure to managers with proven track records and deep domain knowledge. This model is designed to empower specialists like Altair to launch new strategies and scale their platforms more efficiently.

Eric Zoller, Chief Executive Officer and Co-Founder of Taproot, commented on the alliance, stating, "We are proud to announce our partnership with Altair and are excited to grow together with David and Mike, who bring extensive experience investing in family-owned, corporate carve-out, under optimized and special situation businesses." He emphasized that the collaboration reinforces Taproot's core philosophy.

"We believe this partnership reinforces Taproot's approach to thematic investing, firm building and fundraising," Zoller added. "As we look ahead, Taproot continues to invest in delivering unique resources to accelerate the growth of our partner funds while reducing the friction cost of launching a new firm."

This approach addresses a significant challenge for new fund managers, who often face substantial hurdles in establishing the institutional credibility and operational backbone required to attract large-scale investors. By providing this framework, Taproot enables its partners to focus on their core strength: sourcing and executing investments within their specialized fields.

A Thesis Timed for Tectonic Shifts

Altair Industries enters the market with a laser-focused strategy designed to capitalize on some of the most significant macroeconomic trends shaping the global economy. The firm's focus on middle-market aerospace, defense, and mission-critical industrial companies is built on a three-pronged thesis: reshoring, defense expansion, and technological transition.

First, the push for supply chain resilience is driving a wave of reshoring and "friend-shoring" as companies move critical manufacturing capabilities back to North America. According to a 2026 outlook from Deloitte, ongoing economic uncertainty and the need to mitigate geopolitical risk could accelerate this trend, creating a fertile ground for investment in domestic industrial capacity.

Second, defense expansion is creating powerful tailwinds. Geopolitical instability has prompted a sharp increase in military spending worldwide, with global expenditures climbing 9.4% in 2024 to reach an estimated $2.7 trillion. This surge is fueling demand for modernization, advanced technology, and a more robust domestic industrial base, creating opportunities for private equity to fund growth and innovation among defense contractors and their suppliers.

Finally, a profound technological transition is underway. The A&D and industrial sectors are being transformed by advancements in artificial intelligence, autonomous systems, advanced materials, and digital manufacturing. According to PwC, companies with capabilities in these high-tech areas are becoming prime acquisition targets. Altair aims to partner with companies at the forefront of this shift, helping them integrate new technologies and scale their operations.

With over four decades of collective experience, Altair’s leadership plans to leverage its operational expertise to take control positions in companies poised to benefit from these intersecting forces, employing a hands-on approach that combines organic growth initiatives with disciplined M&A.

Forging a Strategic Alliance in a Competitive Field

The partnership is more than a simple capital injection; it is a strategic alignment designed to give Altair a competitive edge in a crowded marketplace. The middle-market industrial and A&D sectors are attractive to a wide range of investors, from established private equity giants with dedicated industrial practices to large strategic buyers seeking to acquire new capabilities.

For Altair, the backing from Taproot provides immediate institutional credibility, access to a sophisticated fundraising apparatus, and operational support that would otherwise take years to build. This allows the firm to move quickly and decisively on complex opportunities, including corporate carve-outs and special situations that align with its expertise.

The significance of the transaction is further underscored by the caliber of legal counsel involved. Taproot was advised by Latham & Watkins LLP, while Altair was represented by Sidley Austin LLP. The involvement of these top-tier global law firms, both renowned for their expertise in complex private equity transactions and fund formation, indicates a meticulously structured and strategically vital alliance.

For Taproot, the partnership offers targeted exposure to a high-growth, thematic investment strategy managed by seasoned professionals. It is a prime example of its model in action: identifying and empowering specialized teams to capitalize on market dislocations and long-term secular trends. As capital flows increasingly toward managers with demonstrable and differentiated expertise, partnerships like the one between Taproot and Altair are poised to become a more prominent feature of the private equity landscape.