Carlyle Group is reportedly planning a new fund targeting the defence sector as US and European governments ramp up military modernisation, according to a report by Bloomberg citing unnamed sources familiar with the matter.

The fund is being pitched to investors as a vehicle for “reindustrialisation,” aimed at expanding domestic manufacturing and industrial capacity. The firm, which has deep roots in defence investing, has not disclosed a target size or formally launched fundraising.

Carlyle has already secured exclusivity to develop a data centre at Fort Bliss, Texas, and continues to expand its portfolio in aerospace, defence, and government services under Ian Fujiyama.