Carlyle Group Establishes New Platform to Tap Rising Defense Spending in US and Europe
The Washington-based private equity giant Carlyle Group Inc. is launching a dedicated investment platform focused on middle-market companies in the aerospace, defense and industrials sectors, positioning itself to capitalize on sustained increases in defense budgets across the United States and Europe.
The new platform will target investment opportunities in both regions. It will be led by Aaron Hurwitz, head of Carlyle’s defense investment activities, and Wes Bieligk, a partner in the industrials group. Ian Fujiyama, Carlyle’s global head of aerospace, defense and government, will serve as chairman.
As part of the initiative, Carlyle is bringing in retired U.S. Army Lieutenant General Bryan Fenton, former commander of the U.S. Special Operations Command, as an operating executive. Fenton will support deal origination, investment evaluation, and engagement with portfolio companies and industry stakeholders.
Ian Fujiyama described the platform as a natural extension of Carlyle’s existing investment expertise in the sector, aimed at deploying dedicated capital and operational resources to the middle-market segment.
The move comes as private equity firms increasingly seek to benefit from structural growth in global defence spending. NATO members and other allies have committed substantial resources toward military modernisation, supply chain resilience, and industrial base expansion amid rising geopolitical tensions.
Carlyle has a long history in the defense sector, dating back to its early years when former U.S. Defense Secretary Frank Carlucci joined its leadership. The firm has previously invested in notable companies including Booz Allen Hamilton, StandardAero Inc., and Two Six Technologies. It has also been marketing a dedicated defense-focused fund to investors.
Last month, Carlyle and SEI entered into a strategic partnership aimed at expanding access to private market investments for individual investors across wealth management and retirement platforms, reflecting growing demand for alternatives beyond traditional public markets.
In parallel, Carlyle has been deepening its involvement in defense-adjacent infrastructure. The firm was recently granted exclusivity to negotiate a potential project to build a data centre at Fort Bliss in El Paso, Texas, as the U.S. Army explores large-scale public-private partnerships.
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