French Finance Companies Launch European Defence Investment Fund

On June 16, 2025, four major French financial institutions — Tikehau Capital, Société Générale Assurances, CNP Assurances, and the mutual insurer CARAC — announced the launch of a new private equity fund dedicated to European defence and security sectors. The fund, named Tikehau Défense et Sécurité (Tikehau Defense and Security), debuts with an initial commitment of €150 million and has the official backing of the French Ministry of Defence. Structured as a unit-linked investment product available through life insurance policies starting in September 2025, this vehicle will invest in high-tech companies across defence, cybersecurity, and related security industries. The initiative comes as investors are keen to tap into Europe’s drive to re-arm itself in light of the Russia-Ukraine war and other global conflicts. It also reflects a broader trend of rising private capital interest in defence companies, a sector now viewed as having high growth potential and critical importance for European autonomy. Below, we examine the launch in three contexts: the institutional-industrial framework, alignment with European industrial strategy, and the attractiveness of the defence sector for investors.