Warburg Is Said to Target Up to €1.5 Billion for Defense Fund

Warburg Pincus is considering a dedicated defense fund to tap rising investor demand for the sector as Europe hikes military spending, people familiar with the matter said.

The New York-based private equity firm could seek €1 billion ($1.2 billion) to €1.5 billion for the fund and has held talks with potential investors, according to the people.

The first-time vehicle would be a companion to Warburg Pincus’ flagship fund and target investments around defense and European resilience and security, the people said.

The new fund will be able to tap Warburg Pincus staff with experience in the sector including Tobias Weidner, ...