Travers Smith's Sustainability Insights: Investing in Europe's defence

At the end of last year, Bain & Company argued that private capital "is poised to play a critical role in the modernization of the US defense industry".  They pointed to the growing number of private equity and venture capital investments, and they identified a significant funding gap and the need for innovation as the key drivers. 

In principle, the same is true in Europe – but investments have so far been fairly sparse.  As European countries prepare to significantly increase their own spending on defence, there is now a clear opportunity for private capital firms active in the region – and that goes way beyond the more obviously defence-focused businesses.  Many adjacent industries, especially in the technology sector, will be among the beneficiaries.