Warburg Pincus is considering raising a dedicated defence investment fund targeting between €1bn and €1.5bn, according to a Bloomberg report.

The first-time vehicle would sit alongside Warburg’s flagship private equity funds and focus on defence, aerospace, and security-related investments tied to European resilience. The firm has already held discussions with potential investors, although no final decisions have been made on timing or size.

The fund would draw on Warburg’s internal sector expertise, including European industrials specialist Tobias Weidner and New York-based partner Dan Zamlong, who leads the firm’s aerospace and defence investments. Rene Obermann, chairman of Europe at Warburg Pincus and chairman of Airbus, has publicly called for Europe to step up its military capabilities, although he is not directly involved in the fund’s day-to-day development.

European governments have earmarked hundreds of billions of euros to re-arm the continent and reduce reliance on the US, prompting private equity firms to revisit a sector once viewed as politically sensitive. Warburg has prior experience in the space through investments in Consolidated Precision Products, Inrcore, Triumph Group, and satellite operator Inmarsat.

The move would place Warburg alongside peers such as Tikehau Capital and Weinberg Capital Partners, which have already raised dedicated defence and security funds in response to shifting geopolitical priorities.

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