INVESTMENT SOLUTIONS
The defence industry is undergoing a transformative shift, driven by rapid technological advancements and an evolving geopolitical landscape. As this sector restructures for the future, investors have a unique opportunity to navigate and capitalize on emerging trends. Staying informed and strategically positioned is key to unlocking sustainable growth in this dynamic environment.
At the core of our work lies an unwavering commitment to trust, transparency, and integrity. With deep sector expertise, cross-disciplinary insights, and a hands-on approach, we empower businesses and investors to navigate complexity and seize opportunities with confidence.
As a dedicated partner for sustainable growth, we support SMEs in the Defence & Aerospace industry, primarily across Europe. We collaborate with entrepreneurial teams who share our ambition and passion, fostering innovation and long-term value creation — for companies, investors, and society alike.
"It's a very robust market right now. The macro in defence is as robust as it's been in a long time“
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Peter Manos, Arlington Capital
The Market Environment
World military expenditure increased in 2023 for the ninth consecutive year, reaching a total of US$ 2’443 billion. The 6.8% increase in 2023 was the steepest year-on-year rise since 2009 and pushed global spending to the highest level SIPRI has ever recorded.
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In total, US$ 23.1 billion were spent on research and development (R&D) within aerospace and defence by the 2,500 largest spenders worldwide in 2022. Of these, US$ 10.1 billion were spent in the United States, and € 8.7 billion in the European Union.
Despite the continuing growth trend in the industry and the fact that the majority of defence companies' customers are state-owned, private equity financing for European SMEs in the D&A industry is still difficult for those in need for funding.
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An EU study shows an equity financing gap of € 2 billion. The 3 most cited reasons among 143 companies surveyed are:
Lack of market understanding by investors (16.3%)​​
Limited investor pool (14.1%)​
Lack of technical understanding by investors (12.8%)​
Investment Focus
We offer investors access to high quality investment opportunities in businesses in the less competitive, lower mid-market Private Equity segment.
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​Through careful selection of portfolio companies and active support during the investment period, we can create the best possible conditions for a successful investment.​
​Medium-sized buy-outs with revenues between € 50 million to € 200 million.
​​Major investment criteria:​
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Further conditions for the assessment of potential portfolio companies are:​
​Low profit but cash flow positive
Minimal to no debt
​Ideally own their technology (IPR)​
​Be headquartered primarily in Europe
Grow potential in new geographical market
Ideally have dual-use products to play the non-defence market as well
​Develop, produce and market products that cater to an end-consumer (final products and major components)
