Investing.com – plans to launch a fund focused on the defense sector amid growing demand by governments to upgrade their military forces, according to reporting from Bloomberg, citing people with knowledge of the matter. Carlyle stock gained 1.8% in late afternoon trade following the news.
The Washington, DC-based firm has reached out to investors to discuss the fund, pitching it as a way to invest in so-called reindustrialization, the people said, who asked not to be identified discussing confidential information. This entails expanding the US’s industrial base and manufacturing.
Carlyle hasn’t begun marketing the fund formally, nor has it communicated a target size, the people said.
Private capital has been flooding into the historically boom-and-bust defense sector as the US and European governments dedicate billions to modernize their armed forces. US President Donald Trump has prioritized weapons development, seeking a 50% boost in the annual defense budget next year to $1.5 trillion.
The fund would allow Carlyle to capitalize on increased government spending on military forces and domestic manufacturing capacity.
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