The quietly influential figure of Stephen Feinberg, 66-year-old billionaire founder of private equity firm Cerberus Capital Management, has, according to insiders, assumed an unprecedented level of power over US military spending. As Deputy Undersecretary of Defence since March 2025, Feinberg's low public profile stands in stark contrast to that of his superior, Defence Secretary Pete Hegseth, who regularly engages with the media and troops. Yet, sources within Capitol Hill, the Pentagon, and the defence contracting community suggest Feinberg's true impact and influence far surpass those of Hegseth.
Feinberg's reclusive nature is nothing short of extraordinary for someone in his position. Since his confirmation hearing, he has not testified before any committees on Capitol Hill, nor has he held press conferences or given interviews. His press spokesperson departed months into his tenure and has yet to be replaced. Despite this unusual level of secrecy, insiders claim that "everything is centred around Feinberg" and that he has a significant stake in nearly all major activities within the department, particularly those related to procurement and investment.
A key aspect of Feinberg's reported influence lies in his unprecedented control over the Pentagon's vast procurement network. Both critics and supporters acknowledge that he has seemingly dismantled traditional rules governing government weapons acquisition, effectively transforming the Pentagon into its own private equity powerhouse. This overhaul enables taxpayer dollars to be invested directly into defence companies, all aimed at reshaping the military contracting industrial base.
To facilitate these changes, Feinberg has reportedly staffed the Department of Defence with loyalists from his private equity firm, Cerberus. These appointments include individuals like George Kollitides, a senior executive adviser who maintains a seat on an investment company's board, and Tomas Rakusan, another senior adviser with a background at both Cerberus and the CIA. David Lorch, a Cerberus managing director, is also running a multi-billion-dollar office focused on investing in critical minerals and strategic industries, further highlighting the deep integration of his former associates.
The extensive presence of Cerberus alumni within the Pentagon has raised serious concerns about potential conflicts of interest. Critics argue that Feinberg's private sector background and his appointments of former colleagues could lead to decisions that benefit private interests or specific defence companies over broader public good. While there is no evidence suggesting Feinberg is involved in ideological crusades, his focus appears to be squarely on the financial and structural reorganisation of the military's industrial foundation.