A US official says Commerce Secretary Howard Lutnick has been tasked with reviewing Pentagon transactions involving Cerberus Capital Management. Cerberus, a private-equity outfit created by Deputy Defense Secretary Stephen Feinberg, has seen its portfolio companies win Defense Department work during his tenure. The official, who requested anonymity to discuss internal policy, described Lutnick's assignment as an added safeguard on top of Pentagon ethics rules, including those from the Standards of Conduct office.
There are procedural guardrails: Cerberus alumni working inside the department must recuse from any matters touching Cerberus assets, the official said, and that any business within the agency linked to Cerberus is routed to Lutnick for sign-off. Whether Lutnick reviewed the M1 and Stratolaunch deals is unknown, and how far his authority reaches also remains unclear.
Lutnick is now vetting transactions connected to a firm that for years worked with the investment bank he led, up until he entered the Trump administration last year. According to public filings, Cantor Fitzgerald - run by Lutnick prior to his becoming commerce secretary - has backed Cerberus's investment vehicles since at least 2012. Cantor, now led by Lutnick's adult sons, serves as prime broker for several Cerberus funds.
Their overlap extends into real estate. Cantor and its subsidiary Newmark partnered with Cerberus on big-ticket financings for a Los Angeles office tower, a Prime Data Centers project, and distribution centers serving Albertsons supermarkets. Just last month, Newmark also arranged a new headquarters lease for Cerberus at 875 Third Ave. in Manhattan.
Feinberg has brought four former Cerberus executives into the Defense Department. Two now lead the Office of Strategic Capital and the Economic Defense Unit, and their remit is to bolster supply chains for vital resources. Under Feinberg, the Pentagon has not only extended loans but also taken equity stakes in companies it considers critical to national security.
When he entered government, Feinberg placed his business holdings into trusts benefiting his adult children.
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Cerberus-owned defense contractors have continued to win work while Feinberg has served. Last month, M1 Support Services said it secured a 26-year Army helicopter training contract with a $10 billion ceiling. A year earlier, Stratolaunch, a Cerberus-owned hypersonic test company, landed a $90 million Pentagon award.
Cerberus bought a controlling stake in M1 in 2024. M1 is among the Pentagon's 100 largest contractors, according to General Services Administration data. Figures for 2025 have not yet been released, and Bloomberg previously reported that Cerberus's purchase of M1 could push it back into those ranks.
The M1 deal drew fire from Laura Loomer, a right-wing provocateur and an ally of President Donald Trump, who wrote that "the scale and timing of the award has now left the process open to public skepticism." Pentagon spokesman Sean Parnell responded, saying, "There are no conflicts of interest between Deputy Secretary of War Steve Feinberg and Cerberus."
Democratic senators have also questioned Lutnick's potential conflicts. In February, three senators sought information on an agreement the Commerce Department made to invest $1.6 billion in USA Rare Earth, Inc. That same day, the company said it joined forces with Lutnick's former firm to secure private funding. The Commerce Department, Cerberus and Cantor did not immediately respond to requests for comment.
For your wallet, the signal is which contractors keep landing long-duration, high-ceiling awards, and who owns them. Watch how oversight assignments like Lutnick's shape green lights for funding and contracts, because those decisions flow straight into revenue trajectories for the firms involved.
