The European Commission and the European Investment Fund join forces to boost investment in defence innovation through the Defence Equity Facility!
In a significant move to enhance the European Union's capabilities in defence and security, the European Commission in partnership with the European Investment Fund (EIF), has announced the launch of the Defence Equity Facility. This groundbreaking initiative marks a new era in the EU's commitment to strengthening its defence sector, with a substantial investment aimed at fostering innovation and technological advancements.
About the Defence Equity Facility:
The Defence Equity Facility is a €175 million initiative, combining €100 million from the European Defence Fund and an additional €75 million from the European Investment Fund.
This initiative is expected to catalyze approximately €500 million in total investments, including significant private sector participation, over the next four years.
The primary objective is to expand EIF's investment capacity in private equity and venture capital funds focusing on defence-related technologies.
Dual-Use Technology and EU Security:
A central focus of the Defence Equity Facility will be on technologies with dual-use potential, serving both civilian and defence applications.
This approach aligns with the EU's broader security objectives under InvestEU, aiming to stimulate innovation in vital areas of defence and civilian use.
Capacity Building and Ecosystem Development:
The initiative will not only provide funding but also engage in capacity-building activities to assist fund managers in developing and managing their investment strategies effectively.
It aims to create a robust ecosystem of private funds dedicated to investing in defence innovation, thereby enhancing the EU's strategic capabilities.
Continued Partnership and Strategic Alignment:
This initiative builds on the successful collaboration between the Commission and the EIF, initiated with the launch of the CASSINI Fund in January 2022 to support space companies.
It is in full alignment with the European Council's December 2023 call to enhance the EIB Group's support for European security and defence, following the Strategic European Security Initiative.
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