European Commission and EIF join forces to boost investment in defence innovation

The European Commission 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, circa. €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 to support managers in the development and management of their funds.

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

The new Defence Equity Facility is in full alignment with the December 2023 European Council call for enhancing the EIB Group support of European security and defence, building on the Strategic European Security Initiative launched in 2022 and updated in June 2023.

European Defence Fund: €1 billion to boost the EU’s defence capabilities

More information: European Commission