CHAMP Private Equity Pty. Ltd. is poised to acquire a majority stake in Australian fighter jet parts maker Marand Precision Engineering Pty. Ltd., The Australian Financial Review's Street Talk blog reported.

The target company, which caters to customers including Lockheed Martin Corp., Boeing Co., BAE Systems PLC, BHP Group and Rio Tinto, is deemed to have annual revenue of more than A$100 million.

According to the publication, the Australian government's commitment to allocate 2% of the country's gross domestic product to spending on the defense market by 2021 must have driven CHAMP to make a rare investment into that sector.

CHAMP is also set to launch its fifth fund, which is set to raise about A$700 million in the second half, sources familiar with the matter said.

KPMG Corporate Finance provided advice to Marand and its founding family, along with law firm Gadens and accountants Dobbyn and Carafa, while Gilbert + Tobin served as adviser to CHAMP.