Defense and technology specialist Boka Capital is aiming to hold the final close for its third dual-use deep tech and defense fund on $300 million by Q1 2027, chief executive and founder John James told Private Equity International. Having started raising capital in Q2 this year, Boka Growth III has already made its first investment in Kraken Technology, which makes autonomous surface and subsurface vessels. James said another couple of deals are expected in the next few weeks.
The London-headquartered firm has received commitments from investors across Europe, the Middle East and Japan, with US investors expected to participate through a Delaware fund and international investors via a parallel Luxembourg vehicle. Family offices and re-ups from existing investors have accounted for a substantial portion of inflows to date, but demand is growing from larger institutions, including pension schemes. Founded in 2022, Boka closed its second strategy on $200 million in Q4 last year.
The manager backs growth-stage deep tech companies with dual-use potential, such as satellite components, to strengthen resilience amid rapid technological change and rising geopolitical threats. James cited an investment in quantum tech company Infleqtion from its second fund, which was valued at more than 5x gross multiple on invested capital when it listed in New York via a SPAC merger in February 2026. Boka started paying out distributions within two years of investing its second fund, ahead of the expected time frame.
James noted that European and allied governments are spending more on defense and security than at any point in a generation, compressing the timeline from investment to scale. Growth III will hold around 10 growth-stage companies with government customers already in place. Rising competition is evident, as Germany’s DTCP held the first close for its first defense fund at €455 million against a €500 million target in late September.
Source: PE Hub · Summarized by HeadlinesBriefing