(Finance) – The European Commission and the European Investment Fund (EIF) have joined forces to step up their support for EU defense and security through the launch of the European Defense Sector Equity Facility. The initiative, which can count on 100 million euros from the European Defense Fund and another 75 million euros secured by the European Investment Fund, – the EU Commission says in a note – will significantly expand investment capacity of the EIF to support private equity and venture capital funds with defense-related technology strategies over the next four years.
This €175 million initiative is expected to attract further private investment to the funds it supports, thus mobilizing a total amount of around 500 million euros to support European businesses. The Defense Equity Facility aims to stimulate the development of an ecosystem of private funds investing in defense innovation. The initiative will focus on technologies with dual-use potential, including both civil and defense applications, in order to further support EU security, in line with InvestEu’s objectives. This new funding opportunity will be accompanied by capacity building activities to support managers in developing and managing their funds