European Commission and European Investment Fund join forces

The European Commission (Directorate General for Defence Industry and Space – DEFIS) and the European Investment Fund (EIF) have joined forces to step up their support to EU’s defence and security through the launch of the Defence Equity Facility.

The initiative, consisting of €100 million from the European Defence Fund and an additional €75 million from the European Investment Fund, will significantly expand EIF’s investment capacity to support, in the next four years, private equity and venture capital funds with strategies covering technologies relevant to defence.

This €175 million initiative is expected to attract additional private investments in the funds it supports, thereby mobilising, in total, c. €500 million in support of European companies.

The Defence Equity Facility aims to stimulate the development of an ecosystem of private funds investing in defence innovation. The initiative will focus on technologies with dual-use potential encompassing both civilian and defence applications, to further support the EU’s security, in line with InvestEU’s objectives.

This new funding opportunity will be accompanied by capacity-building activities support managers in the development and management of their funds. More information on the initiative is available on the EUDIS webpage.

This initiative strengthens the cooperation between the Commission and the EIF in support of the aerospace and defence ecosystem, initiated with the launch of the CASSINI Fund in January 2022 to bolster investments in space companies.

European Commissioner Thierry Breton stated ” With the Defence Equity Facility, we deliver a first step in improving access to finance for the defence sector. This initiative will contribute to sending a positive signal to the market and stimulate private investments in support of defence innovation. It is a key pillar of the EU Defence Innovation Scheme, which aims to enhance Europe’s technological competitiveness and security, by supporting to a thriving ecosystem of defence start-ups and SMEs. It is a first step and we will continue to work with the EIB and EIF to support access to finance in the defence sector.” (£1.00 = €1.16 at time of publication).