Key Takeaways
- • More than 100 defence and security strategies are raising capital or preparing to do so across Europe, according to a new report from Rede Partners and the European Investment Fund.
- • Mid-market specialists are described as offering the best potential returns in the sector, while the mid-market segment is characterised as "largely untouched" by defence-focused capital.
- • The surge in fundraising reflects sustained institutional interest in European defence and security as a private markets theme.
Summary
More than 100 defence and security strategies are raising capital, or preparing to do so, across Europe, according to a new report from Rede Partners and the European Investment Fund, as reported by Private Equity International. The volume of vehicles in market points to a significant expansion of private capital directed at the defence and security sector in the region.
According to the same sources, mid-market specialists are offering the most attractive potential returns within the segment. Despite the broader influx of capital, the mid-market is described as "largely untouched" by defence-focused fundraising, suggesting a gap between the concentration of capital at the larger end of the market and the opportunities available to smaller and mid-sized managers.
For institutional allocators and private equity managers, the findings highlight both the breadth of current defence fundraising and a potential area of differentiation for mid-market strategies. The full report and detailed fund-level data are available to subscribers of Private Equity International, and the summary available here does not include further figures on fund sizes or target returns.
According to the same sources, mid-market specialists are offering the most attractive potential returns within the segment. Despite the broader influx of capital, the mid-market is described as "largely untouched" by defence-focused fundraising, suggesting a gap between the concentration of capital at the larger end of the market and the opportunities available to smaller and mid-sized managers.
For institutional allocators and private equity managers, the findings highlight both the breadth of current defence fundraising and a potential area of differentiation for mid-market strategies. The full report and detailed fund-level data are available to subscribers of Private Equity International, and the summary available here does not include further figures on fund sizes or target returns.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.