Steve Feinberg’s Cerberus Capital Management tapped Goldman Sachs Group for a potential sale of all or part of his ownership stake in the firm as he prepares to take a role in the Trump administration.
Cerberus, a $65 billion investment company, held discussions with the bank to identify ways in which the billionaire, President Donald Trump’s pick to become No. 2 at the Pentagon, could sell down his interest, according to people familiar with the matter. Appointees are required by law to disclose assets and are typically asked to divest any that could cause a conflict of interest or the appearance of one.
Feinberg will only seek buyers for his ownership interest if he’s asked to do so by federal ethics officials, one of the people said. To become deputy defense secretary, Feinberg still needs to go through a confirmation hearing, the timing of which hasn’t yet been made public.
Feinberg has an estimated fortune of $8 billion, according to the Bloomberg Billionaires Index. The Cerberus co-founder and co-chief executive officer is among a number of wealthy financiers orbiting the Trump administration, including Scott Bessent, who was confirmed by the Senate on Jan. 27 to lead the Treasury Department, and Howard Lutnick, the nominee for Commerce secretary.
Lutnick detailed his wealth and influence across hundreds of firms and left open the possibility of his adult children buying his holdings if he wins confirmation, according to documents released last week. Lutnick, CEO of Wall Street investment bank and brokerage Cantor Fitzgerald, confirmed he’ll divest his interests in the three core firms that constitute his business group: Cantor Fitzgerald, brokerage BGC Group and property firm Newmark Group.
Feinberg owns a slice of Cerberus directly and another chunk through a trust, according to regulatory filings. Representatives for Cerberus and Goldman Sachs declined to comment.
The announcement of Feinberg’s likely appointment caused a stir last month because Cerberus has several investments in defense-technology companies, including M1 Support Services, a federal contractor. Since 2022, M1 has been awarded $1.1 billion in contracts for the main Army training camp for helicopter pilots. Cerberus also recently set up Cerberus Ventures, a new division that invests in early stage companies and aims to “redefine national security,” according to its website.
While defense-related companies are only a small part of the firm’s portfolio, they could present a conflict of interest if Feinberg is confirmed for the Pentagon job. In the previous Trump administration, he was named to the president’s intelligence advisory board.
Feinberg got his start at Michael Milken’s junk-bond powerhouse Drexel Burnham Lambert in the 1980s before co-founding Cerberus in 1992. If Feinberg moves to Washington, the firm’s co-CEO, Frank Bruno, is expected to become sole chief executive, one of the people said.
If confirmed, Feinberg will serve under Pete Hegseth, a combat veteran and former Fox News commentator. Hegseth was confirmed by the US Senate 51-50 in a vote that concluded Trump’s first week back in the White House. He won approval with the tiebreaking vote of Vice President JD Vance, despite a stream of allegations ranging from spousal abuse to excessive drinking to financial mismanagement — all of which he denied.
