Steve Feinberg in Pentagon
Steve would be an interesting dinner table conversation
Dossier on Mr. Feinberg
Stephen Andrew Feinberg, born March 29, 1960, in The Bronx, New York, is an American billionaire financier and the driving force behind Cerberus Capital Management, a private equity firm he co-founded in 1992 with William L. Richter. Raised in Spring Valley, New York, in a Jewish family—his father a steel salesman—Feinberg graduated from Princeton University in 1982 with a B.A. in politics, writing a senior thesis on prostitution and drug legalization. His early career included trading at Drexel Burnham Lambert and managing funds at Gruntal & Co., laying the groundwork for his entrepreneurial leap.
With just $10 million in initial capital, Feinberg built Cerberus into a $60 billion-plus asset management giant by 2024, serving as co-CEO and chief investment officer. Known for a hands-on, contrarian investment style, he’s led the firm into high-profile deals: acquiring grocery chains like Safeway and Albertsons (a $9 billion merger in 2015), military contractor DynCorp, and the Freedom Group (later Remington), which faced scrutiny after the 2012 Sandy Hook shooting and filed for bankruptcy in 2018. His 75% ownership of Cerberus has fueled a personal fortune estimated at $4.8 billion as of July 2024.
Feinberg’s reputation is one of secrecy and intensity. In 2007, he quipped to shareholders that press exposure with apartment photos would cost them “their head,” underscoring his media aversion. Yet his business decisions have kept him in the spotlight—Cerberus’s exit from Steward Health Care, after earning $800 million, left hospitals struggling, drawing ire from critics like Senator Ed Markey. Feinberg has acknowledged private equity’s excesses, noting in 2011 that smaller funds might outperform and that he and peers are “way overpaid.”
A staunch Republican, Feinberg’s ties to Donald Trump include nearly $1.5 million in PAC donations, a 2016 advisory council role, and a 2018 appointment to the President’s Intelligence Advisory Board. In December 2024, Trump tapped him as Deputy Secretary of Defense, thrusting him into a role requiring divestment of his Cerberus stake—a process he’s begun amid debate over his lack of government experience and Cerberus’s military ties, like DynCorp’s Saudi training contracts linked to the Khashoggi murder.
Living in Manhattan and Greenwich, Connecticut, with his wife, Gisela, Feinberg is a big-game hunter with a penchant for marksmanship. His potential Pentagon tenure could pivot his legacy from private equity titan to national security player, balancing a career marked by bold bets and calculated retreats.
Cerberus’ Experience in the Defense Sector
Stephen Feinberg’s Cerberus Capital Management has made significant inroads into the defense sector, leveraging its private equity expertise while increasingly venturing into venture capital to back innovative, defense-focused technologies. Here’s a breakdown of its notable defense sector investments, with a spotlight on venture capital where applicable:
Private Equity Investments in Defense
Cerberus has a track record of acquiring established defense-related companies, often focusing on operational improvements and strategic growth:
DynCorp International (2010–2020): Cerberus acquired DynCorp, a major Pentagon contractor, for $1.5 billion in 2010. DynCorp provided military surveillance, training, and logistics services, including controversial contracts like training Saudi personnel linked to the 2018 Khashoggi murder. Cerberus sold DynCorp to Amentum in 2020, capitalizing on its decade-long growth in government contracting.
M1 Support Services (May 2024): Cerberus took a controlling interest in M1, a Texas-based firm offering maintenance and support for military aircraft. This acquisition aligns with Cerberus’s focus on supply chain integrity and national security, targeting operational efficiency in defense aviation.
Calspan’s Hypersonic and Defense Test Systems (May 2024): Acquired from TransDigm Group, these business units specialize in advanced testing for hypersonic and defense systems. This move bolsters Cerberus’s portfolio in cutting-edge military technology, supporting Pentagon priorities.
Landmark Structures (December 2024): While primarily a water storage solutions provider, Landmark’s infrastructure capabilities have defense applications, such as secure water supply for military bases, reflecting Cerberus’s broad interpretation of security-related investments.
Sparton Corporation (Pre-2021): Cerberus previously owned Sparton, a manufacturer of anti-submarine warfare systems and electronics for the U.S. Navy. Sold to Elbit Systems in 2021, this investment highlights Cerberus’s early defense hardware focus.
Stratolaunch LLC: Cerberus invested in this aerospace firm, known for its massive carrier aircraft designed to launch satellites and potentially defense payloads. While not exclusively military, Stratolaunch’s dual-use potential ties into national security interests.
Venture Capital Investments in Defense
Cerberus has expanded into venture capital through its Cerberus Ventures arm, launched in 2023, targeting early-stage companies in critical technology sectors, including defense. This shift complements its traditional private equity approach by betting on innovation:
Torngat Metals Ltd. (2023): Cerberus invested $50 million from its $2.5 billion supply chain fund into Torngat, a Canadian mining company extracting rare earth oxides for low-carbon tech like electric vehicles and wind turbines. While not a direct weapons system investment, rare earths are vital for defense electronics and hardware, aligning with Pentagon supply chain priorities outlined in Biden’s executive orders.
Vivace International Corporation (August 2024): Cerberus provided growth capital to Vivace, a New Orleans-based manufacturer of specialty propulsion tanks for space and defense applications. This venture-style investment supports next-generation military and space capabilities, a dual-use sector critical to national security.
Maybell Quantum: Cerberus partnered with Maybell, a quantum computing infrastructure startup. As noted by Chris Darby, Global Head of Venture Investments, this investment aims to secure quantum advancements for national security. Quantum tech’s defense applications include cryptography and simulation, making this a strategic early-stage bet.
Broader Venture Strategy: Cerberus Ventures targets Seed through Series B rounds in sectors like quantum computing, AI, and synthetic biology—fields with clear defense implications. Its $2.5 billion fund, which raised $863 million by mid-2023, focuses on supply chain and defense-industrial projects amid U.S.-China tensions. While specific additional venture deals remain less publicized, Cerberus’s stated intent is to back startups enhancing national security, mirroring trends seen in firms like Andreessen Horowitz’s “American Dynamism” initiative.
Context and Approach
Cerberus’s defense investments blend its operational private equity roots—turning around firms like DynCorp—with a newer venture capital lens, targeting nascent technologies via Cerberus Ventures. The firm’s 2023 supply chain fund explicitly responds to geopolitical competition, prioritizing areas like defense industrial bases and critical minerals. Its venture arm, led by a team with tech and policy chops from Alphabet, Intel, and In-Q-Tel, aims to accelerate portfolio growth in dual-use and defense tech, often in collaboration with government needs.
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written by smart machines that can hallucinate so no advice provided here