Warburg Pincus is considering launching a dedicated defence fund as investor interest in the sector grows amid rising European military spending, according to a report by Bloomberg citing people familiar with the matter. The New York-based private equity firm could seek between €1bn and €1.5bn for the vehicle and has held early discussions with potential investors.
The proposed fund is expected to sit alongside Warburg Pincus’s flagship fund and would target investments linked to defence, security, and broader European resilience themes, with sources adding that no final decisions have been made on timing or fund size.
The initiative would draw on Warburg Pincus’s existing aerospace and defence expertise, including senior professionals in its European industrials and global aerospace and defence teams. Rene Obermann, chairman of Warburg Pincus Europe and chairman of Airbus, is reportedly not directly involved in the day-to-day development of the fund, but has previously used his position at Airbus to add an advancement in military capabilities.
European governments have committed hundreds of billions of euros to rearm and reduce reliance on the US, prompting private equity firms to increase exposure to a sector long viewed as politically sensitive. Peers including Tikehau Capital and Weinberg Capital Partners have already raised dedicated defence and security funds. Warburg Pincus has previously invested in aerospace and defence assets including Consolidated Precision Products, Inmarsat and Triumph Group.
