Carlyle builds out middle-market play in aerospace and defense
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By
Nick Wakeman
Betting on a multi-decade defense spending cycle, the firm is dedicating capital and local investment teams on both sides of the Atlantic Ocean to pursue mid-sized transactions.
The Carlyle Group has been involved in some of the largest transactions in the government market.
Many are measured in the billions – Booz Allen Hamilton in 2008 ($2.54 billion) and ManTech in 2022 ($4.2 billion) to name a few.
Now the global investment firm is looking farther down the market and has built a platform to pursue opportunities in the middle market.
Carlyle is expanding its aerospace, defense and government, and industrial teams to pursue opportunities in the U.S. and Europe.
The effort will be led by Aaron Hurwitz, who leads Carlyle’s investments in defense, and Wes Bieligk, a partner on Carlyle’s industrials team.
Ian Fujiyama has been named chairman of the new organization. He has been with Carlyle for 28 years and currently works as global head of aerospace, defense and government.
Carlyle is also bringing in Bryan Fenton, former commander of the U.S. Special Operations Command, as an operating executive. Fenton will focus on strategic sourcing, evaluation of investment opportunities, and engagement with management teams and industry stakeholders across the defense market.
“We see this initiative as a natural extension of our broader franchise and an opportunity to dedicate capital and expertise to the middle-market segment across the U.S. and Europe,” Fujiyama said.
Carlyle executives see the increase in defense spending in the U.S. and Europe as a multi-decade opportunity.
“Governments are prioritizing military modernization, force preparedness, and resilient industrial capacity at a scale that we believe will drive long-term demand for advanced technologies and strategic capabilities,” said James Stavridis, Carlyle vice chair and a former allied commander at NATO.
Carlyle will have teams across the U.S. and Europe who will tap into the firm’s sector expertise and resources.
“We believe we are well positioned to build and scale businesses that are essential to the industrial base," Hurwitz and Bieligk said jointly in the announcement.