More than 100 defence and security strategies are raising capital, or preparing to do so, across Europe. The momentum reflects growing investor interest in the sector as governments and institutions expand their security spending.
According to the European Investment Fund and a new report from Rede Partners, the flow of capital is broad, but it has not reached every segment equally. The mid-market remains largely untouched by the wave of defence-focused funds, even as it is widely viewed as offering some of the strongest potential returns.
Mid-market specialists are positioned to benefit from this gap. Their smaller, more specialised targets can offer attractive entry valuations and room for growth, particularly for investors seeking exposure to defence and security beyond the largest platforms. The report suggests that managers who build expertise in this segment may find less competition than their peers focused on larger deals.
The findings point to a market where fundraising activity is concentrated at the top end, leaving a notable opportunity lower down the scale. Whether capital begins to follow the mid-market will depend on how quickly fund managers adapt their strategies and how investors weigh the risks against the expected rewards.
Source: PE International · Summarized by HeadlinesBriefing