Publication 23.06.2025

Investing in Aerospace, Defence and Cybersecurity through Private Equity

Cécile Cabanis

Henri Marcoux

Deputy CEO

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At a glance

At Tikehau Capital, we have expressed a strong belief since the COVID-19 crisis that economic value creation around the world would pivot from the generation of efficiency to the generation of resilience. After decades of low interest rates and globalisation that allowed economic players to optimise their production, supply chains and capital structure, de-globalisation and higher interest rates are pushing these same players to strengthen their robustness by repatriating production close to the consumer, operating with larger equity cushions and investing massively in the creation of resilience.

Cybersecurity, Aerospace and defence are key sectors for protecting our economic model and European sovereignty, which is why we believe it is essential to support their growth through Private Equity.

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Highlights

Cybersecurity challenges are enormous. If, on the one hand, it is a necessity for modernisation, a competitive advantage and a key element of economic development, it also appears to be an extraordinary source of vulnerability if the systems, users and data are not properly protected.

Right now, defence sectors and commercial aviation are both faced with the same challenge: the need to rapidly increase production rates in order to deliver record orders.

That’s where Private Equity comes in, because it is essential to be able to finance strategic assets in the Aerospace industry & Defence, targeting niche players who are leaders in their markets, as well as consolidation platforms to increase resilience of the supply chain.

Investment needs in Cybersecurity are therefore considerable, in particular through Private Equity, given that the sector is mainly made up of unlisted companies.

All European countries are actively seeking to raise additional funds to strengthen their defence ecosystems. In particular, the aim is to increase investment in cutting edge technologies, intelligence and the modernisation of armed forces. This coordinated effort reflects a strategic shift towards greater autonomy and resilience in Europe’s defence posture.

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