This series of reports examines the evolving European and UK defence sector landscape for private capital funds (PCFs) and institutional investors, given wider shifts in global geopolitics. Drawing on extensive private capital fund raising and transaction experience, we analyse fund requirements, regulatory frameworks, deal structuring challenges, and sector dynamics in the €326bn European defence market, particularly in key industry verticals downstream of controversial weapons.

We address this topic in three parts:

Part 1: Market dynamics and sector opportunities →

‍Europe's strategic shift towards defence self-reliance has driven substantial increases in defence spending, creating sustained demand for private capital across seven key verticals as nations rebuild capabilities to meet growing security threats.

Part 2: ESG framework evolution and fund structuring →

‍Many ESG frameworks have evolved from blanket defence exclusions to nuanced approaches that separate controversial weapons from legitimate security infrastructure, potentially enabling responsible investment in democratic resilience through bespoke fund structuring.

Part 3: Executing transactions amidst regulatory complexity →

‍Investors must navigate government security requirements to execute defence transactions, including rules around security protocols, export controls, and emerging technologies in an increasingly complex regulatory environment.