Harvey Schwartz of Carlyle Group predicts a decade of growth in private investment for defence, energy security, and data protection, driven by geopolitical change and governments’ focus on national stability.
Harvey Schwartz, chief executive of Carlyle Group, has cast defence, energy security and data protection as the dominant investment themes likely to shape private capital over the next decade, arguing that geopolitical change is pushing governments towards areas increasingly funded by private money.
Speaking at the BNY INSITE 2026 conference in Aurora, Colorado, Schwartz said the private capital market is still early in its evolution but has reached a turning point. He linked that shift to the wars in Ukraine and the Middle East, which he said have helped bring an end to the long post-war period in which economic cooperation was the prevailing global model.
In his view, countries are now prioritising national security, growth and political stability, even as many governments run large deficits that limit their ability to finance those priorities directly. That, he suggested, creates a larger role for private capital, including private wealth investors.
“Everywhere I go in the world, the narrative, the discussion is the same. Everyone is trying to solve for national security, economic growth and political stability,” Schwartz said.
He said the definition of national security has broadened well beyond conventional defence contractors. Capital is now expected to flow into a mix of traditional and renewable energy, cyber protection and other mission-critical infrastructure.
Schwartz said investors who choose to participate over the next 10 years could become an important source of funding for those sectors, and added that while pricing geopolitical risk is difficult, the opportunity set could be unusually attractive.
“I do think it will provide for us unique opportunities to deploy capital, and I think the marginal returns on that capital will end up being quite attractive over the next decade,” he said.
Carlyle has long maintained a presence in aerospace, defence and government-related investing, with the firm saying these businesses are central to areas such as aircraft components, defence technology, cybersecurity, logistics and the modernisation of critical systems. In that context, Schwartz’s remarks underline a strategy the firm has pursued for decades, while also reflecting a broader industry pivot towards sectors tied to resilience and sovereignty.
He also stressed the importance of diversification within Carlyle’s private wealth platforms, saying the firm aims to spread exposure across assets rather than rely on a single outsized winner. That approach, he said, is intended to protect against downside while still delivering strong performance.
Schwartz’s comments come as private capital firms increasingly compete to position themselves around the themes of rearmament, energy transition and digital security. For Carlyle, the opportunity appears to extend well beyond a single industry cycle. It is, in Schwartz’s telling, a structural shift in where money will go next.
- https://www.wealthmanagement.com/investing-strategies/carlyle-ceo-sees-defense-energy-as-key-themes – Please view link – unable to able to access data
- https://www.wealthmanagement.com/investing-strategies/carlyle-ceo-sees-defense-energy-as-key-themes – At the BNY INSITE 2026 conference, Harvey Schwartz, CEO of Carlyle Group, highlighted that national defense, energy security, and data protection will be major themes in private capital investment over the next decade. He noted that geopolitical shifts, such as conflicts in Ukraine and the Middle East, have ended the era of economic cooperation, leading countries to prioritise these sectors. With many governments facing high deficits, private capital sources, including private wealth, are expected to fund these areas. Schwartz emphasised the importance of diversification across private wealth vehicles to optimise performance and risk protection.
- https://www.investing.com/news/stock-market-news/carlyle-ceo-sees-market-for-defense-investments-as-unlimited-4712984 – Harvey Schwartz, CEO of Carlyle Group, stated that the firm sees limitless opportunities to invest in the defense sector as governments globally increase military spending. He mentioned that the total addressable market for a new dedicated unit set up to invest in this sector is unlimited, with defence budgets rising by 1%, 2%, or 5% worldwide. Schwartz highlighted the global nature of this trend and noted that the new unit will invest in aerospace, industrials, and defense businesses. He also pointed out that Carlyle’s Washington, D.C., roots provide an advantage over New York-based private capital peers.
- https://www.carlyle.com/our-firm/global-private-equity/aerospace-defense-government – Carlyle has been investing in companies across the aerospace, defense, and government sectors for over three decades. These businesses play essential roles in air travel, national defense, and government operations, including aircraft component manufacturing, defense technology, IT, cybersecurity, logistics, and other mission-critical services. Carlyle’s investment strategy focuses on companies whose offerings align with enduring needs, such as advancing defense technology, strengthening supply chains, enhancing cybersecurity, and supporting the maintenance and modernisation of critical systems. The firm seeks to help management teams scale mission-critical platforms and navigate complex regulatory environments.
- https://www.zonebourse.com/actualite-bourse/le-dg-de-carlyle-juge-illimite-le-marche-des-investissements-dans-la-defense-ce7f5ad3dd80f625 – Harvey Schwartz, CEO of Carlyle Group, stated that the firm sees unlimited opportunities in the defense sector as governments worldwide increase military spending. He mentioned that the total addressable market for a new dedicated unit set up to invest in this sector is unlimited, with defense budgets rising by 1%, 2%, or 5% globally. Schwartz highlighted the global nature of this trend and noted that the new unit will invest in aerospace, industrials, and defense businesses. He also pointed out that Carlyle’s Washington, D.C., roots provide an advantage over New York-based private capital peers.
- https://www.aol.com/articles/private-equity-giant-sees-unlimited-045408000.html – Geopolitical tensions are creating massive opportunities in defense and industrial investing, according to Carlyle Group CEO Harvey Schwartz. He stated that everywhere in the world, the conversation is about national security, with Russia’s invasion of Ukraine and the Iran war intensifying the global focus on national security. This has led to higher defense spending and increased demand for private capital tied to national security. Schwartz highlighted that Carlyle’s defense business has delivered ‘outrageous’ returns over four decades.
- https://en.wikipedia.org/wiki/The_Carlyle_Group – The Carlyle Group is a global investment firm that invests primarily in industries such as aerospace, defense & government services, consumer & retail, energy, financial services, health care, industrial, real estate, technology and business services, telecommunications & media, and transportation. As of March 31, 2018, Carlyle’s Corporate Private Equity segment advised 23 buyout and 10 growth capital funds, with $75 billion in Assets Under Management (AUM). The Real Assets segment advised 11 U.S. and internationally focused real estate funds, two infrastructure funds, two power funds, an international energy fund, and four Legacy Energy funds, with about $44 billion in AUM as of March 31, 2018.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on June 2, 2026, and reports on Harvey Schwartz’s comments at the BNY INSITE 2026 conference. Similar statements were made by Schwartz at the Bernstein Strategic Decisions Conference on May 27, 2026, as reported by Reuters. ([investing.com](https://www.investing.com/news/stock-market-news/carlyle-ceo-sees-market-for-defense-investments-as-unlimited-4712984?utm_source=openai)) The Wealth Management article provides additional context and details not present in the earlier Reuters report, suggesting originality.
Quotes check
Score:
7
Notes:
The article includes direct quotes from Harvey Schwartz. While similar statements were made at the Bernstein conference, the specific quotes in this article appear to be original. However, without access to the full transcript of the BNY INSITE 2026 conference, it’s challenging to verify the exact wording of these quotes.
Source reliability
Score:
8
Notes:
Wealth Management is a reputable publication focusing on investment and wealth management topics. The article cites Harvey Schwartz’s statements at the BNY INSITE 2026 conference, which is a credible source. However, the article does not provide direct access to the conference proceedings or a transcript, which would enhance verification.
Plausibility check
Score:
9
Notes:
The claims about Carlyle’s focus on defense and energy investments align with recent industry trends and statements from Harvey Schwartz. Similar sentiments were expressed at the Bernstein Strategic Decisions Conference on May 27, 2026. ([investing.com](https://www.investing.com/news/stock-market-news/carlyle-ceo-sees-market-for-defense-investments-as-unlimited-4712984?utm_source=openai)) The article provides specific details about Carlyle’s strategic focus, which are plausible and consistent with known information.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article provides a plausible and timely report on Harvey Schwartz’s statements regarding Carlyle’s investment focus on defense and energy sectors. While the content is consistent with known industry trends and similar statements made at the Bernstein Strategic Decisions Conference, the lack of direct access to the BNY INSITE 2026 conference proceedings or a transcript raises some concerns about the exact wording of the quotes. Additionally, the article does not reference other independent sources to corroborate the claims. Given these factors, the overall assessment is a PASS with MEDIUM confidence.