Trump picks billionaire investor as Pentagon deputy

President-elect Donald Trump has selected Stephen Feinberg to be his deputy Defense secretary, two people familiar with the decision told POLITICO, potentially putting a secretive billionaire financier with no experience in the agency into the Pentagon’s No. 2 job.

Feinberg, who had a role on Trump’s intelligence advisory board during his first term, is a major donor to the president-elect, but his selection could present some significant conflicts of interest. He is the chief executive of private equity firm Cerberus Capital Management, which has investments in military aircraft training and maintenance, and holds a majority stake in Navistar Defense, a manufacturer of military vehicles.

Feinberg has yet to accept the offer, though one of the people familiar said he is expected to accept.

Through Cerberus, Feinberg this year launched Cerberus Venture One, which is focused on investing in defense technology. Normally, federal officials recuse themselves from taking part in any decisions relating to companies they once worked for or have investments in, meaning Feinberg could face a complicated task doing the deputy job, which is focused on budgeting and technology development.

The Washington Post first reported that Feinberg, who has long been in Trump’s orbit, had been offered the job. Among those who had also been rumored to be in contention for the job were: Trae Stephens, the co-founder of the dronemaker Anduril; former Republican Virginia Senate candidate Hung Cao; David Norquist, the Pentagon’s deputy in the first Trump administration; and Robert Wilkie, who is leading the Pentagon transition.