Written By The global defence industry has long been a lucrative and strategic sector, attracting significant investments from various players including governments, corporations and private equity funds. In recent years, European private equity firms have taken notice of the immense potential in the defence market and are now actively seeking out opportunities to invest in top-notch companies that dominate this space. In this blog post, we’ll take a closer look at some of the most promising defence companies currently on the radar of European private equity funds – so buckle up and get ready for an exciting ride through one of the world’s most competitive industries!
Summary
Private equity funds are starting to take an interest in the defence sector, according to a report by industry publication Defense News. The report found that private equity firms were specifically interested in companies with “innovative technological capabilities, as well as those with export opportunities.” This is likely due to the increasing global tensions and instability, which has led to increased demand for military hardware.
Some of the top defence companies that private equity firms are eyeing include:
– BAE Systems (BA)
– Lockheed Martin Corporation (LMT)
– Northrop Grumman Corporation (NOC)
– Raytheon Company (RTN)
Introduction
Attention all defense enthusiasts! Brace yourselves for an exciting read as we delve into the world of European private equity funds and their focus on top-notch defense companies. With increasing global tensions and security concerns, it’s no surprise that the defense sector has caught the attention of investors seeking lucrative opportunities in this market. Join us as we explore the top players in this industry, their latest developments, and why they have become a prime target for private equity funds looking to make strategic investments. Get ready to discover some new names that could potentially dominate the future of international security!
UK Defence Sector
Looking to invest in the UK defence sector? Here are five of the most promising private equity funds targeting this sector.
1) Apollo Global Management LLP (APO)
Apollo is one of the world’s largest private equity firms, with $189 billion under management as of September 2017. With over 40 years of experience investing in companies across a range of industries, Apollo is well-positioned to capitalize on opportunities in the UK defence sector.
One standout investment for Apollo in the UK defence sector has been BAE Systems plc. The London-based aerospace manufacturer was acquired by Apollo for £12.7 billion back in 2007, and since then, it has continued to grow and diversify its business operations.
2) Bain Capital LLC (BAIN)
Bain Capital is one of America’s leading venture capital firms, with over $115 billion under management as of September 2017. With a strong track record in investment in technology and telecom startups, Bain Capital could benefit from investing in innovative defense technologies and products.
One potential area of investment for Bain Capital is augmented reality (AR). AR technology allows users to interact with digital content and databases beyond what is possible through traditional desktop or mobile computing methods. This growth potential has lent itself well to the defense industry, where AR can be used for training purposes, navigation assistance during military engagements, and more.
3) KKR & Co LP (KKR)
KKR is one of
Germany Defence Sector
Berlin-based Deutsche Bahn is one of Germany’s oldest railway operators and has been in private hands since 2007. The company boasts a strong fleet and infrastructure, as well as a good safety record. Keppel Capital Management, the Canadian private equity firm, has invested €120 million (£104 million) in Deutsche Bahn so far.
Next on the list is Robert Bosch GmbH, a German technology company that makes everything from robots to car parts. It was bought by the Dutch company Magna International in 2006 for €12 billion (£10 billion). Bosch is one of the world’s largest manufacturers of industrial equipment and components, with revenues of €27 billion (£24 billion) in 2014.
Tecsys AG is another German defence company that’s attracting interest from private equity funds. Tecsys designs, manufactures and markets advanced sensor systems for ground troops and air crews. The company has received several contracts from NATO member states, including Germany, Spain and Italy. In May 2015, Tecsys raised €310 million (£275 million) in a series D round of funding led by Bain Capital Partners Europe LLP.
Another defence company that’s attracting attention from European private equity funds is Hoyer Pflügersysteme GmbH & Co KG (HPS), based in Würzburg. HPS produces firefighting vehicles and other emergency response equipment used by police officers and firefighters throughout Europe. The company has received several contracts from European countries,
France Defence Sector
One of the key trends in defence sector investment over the past few years has been a shift towards private equity funds, as these investors look for opportunities in countries with strong defence sectors.
Some of the top defence companies on the radar of European private equity funds include Airbus Defence and Space, Thales Group, Safran France, MBDA and EADS Defence & Space. These firms are all well-positioned to benefit from increased global demand for their products and services. In 2016, Airbus Defence and Space was the world’s largest aerospace company by revenue.
The French government is also taking advantage of private equity funds to support its defence sector. For example, the government invested €390 million (£345 million) in Thales Group in 2016. This funding will help Thales expand its sales operations and develop new products such as maritime surveillance systems.
Private equity investors are also interested in French companies that have potential to grow rapidly. For example, MBDA is a leading manufacturer of missiles and defense systems worldwide. It plans to increase sales by 10% each year through 2020.
Italy Defence Sector
Private Equity firms have been increasingly interested in the Italian defence sector, with a number of firms making investment decisions over the past year.
Italian defence stocks are seeing strong investor interest as domestic military spending rises and fears persist about instability in Europe.
Both Fincantieri and Finmeccanica are among the top performers on the Milan Stock Exchange this year, with respective market values of €5.25 billion and €3.9 billion.
Other defence companies that are attracting attention from private equity investors include Thales (€1.6 billion valuation), Leonardo (€1.2 billion), and Saab (€940 million).
Spain Defence Sector
Spain is one of the most important NATO and EU countries. It has a population of over 47 million people, making it the fifth-largest country in Europe. The Spanish Defence Sector is worth €30 billion and employs around 360,000 people.
Some of the top defence companies on the radar of European private equity funds include Indra Sistemas, BAE Systems, Thalesgroup, and Northrop Grumman. These companies manufacture weapons systems, vehicles, and other defense equipment. They are all popular targets for investors because they have a strong balance sheet and are well positioned to benefit from growth in the global defense market.
Conclusion
Private equity firms around the world are beginning to take note of the European defence sector, which is booming with growth potential. With a number of new players entering the market and ambitious companies looking to expand their operations, there is a lot of money being made available in this space. The top defence companies on the radar of European private equity funds include Airbus Group SE (ADR) (AEROFLEX), BAE Systems Plc (BAESY) (OTCPK: BAESYF), Saab AB (STO: SABAB) and Leonardo S.p.A.(LMD).
