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← Signal: State & Power

Private equity firm Cerberus Capital Management now controls U.S. military operations at Subic Bay in Philippines

Confirmed1 source · Oct 26, 2026

The founder of Cerberus, Stephen Feinberg, is deputy secretary of the Department of War and oversees the Pentagon's Office of Strategic Capital, which makes loans to military tech companies including current and former Cerberus clients.

Private equity firm Cerberus Capital Management now controls U.S. military operations at Subic Bay in Philippines
Image via The Intercept

What happened

Cerberus Capital Management, a private investment firm, has secured a 50-year lease to control Subic Bay in the Philippines through collaboration with Philippine company Agila. In mid-2025, Congress approved plans to build a forward operating base and ammunition production facility there, described as projected to be the world's largest weapons hub. The shipyard now hosts HD Hyundai Heavy Industries, Sub Com, defense contractor V2X, and the Philippine Navy. Cerberus founder Stephen Feinberg is currently deputy secretary of the Department of War (Pentagon's second-in-command) and oversees the Pentagon's Office of Strategic Capital, which makes loans to military tech companies including current and former Cerberus clients. Bloomberg News has identified four other former Cerberus executives now in key positions at the Pentagon.

Context

Subic Bay was a critical U.S. naval base during the Cold War and Vietnam War, but the Philippine Congress closed U.S. bases in 1991 under pressure from an anti-bases movement. Military relations continued through the 1999 Visiting Forces Agreement and the 2014 Enhanced Defense Cooperation Agreement (expanded to nine sites in 2023), giving the U.S. rotational access for military training and operations. The reactivation of Subic Bay under private control represents a new model for maintaining U.S. military presence in the region while circumventing traditional host-nation lease arrangements. This expansion occurs as the Philippines faces documented human rights violations including extrajudicial killings, arbitrary arrests, and enforced disappearances under President Ferdinand Marcos Jr., who took office in 2022 after promising to continue predecessor Rodrigo Duterte's strongman policies.