The defense sector is seeing a level of interest, investment and focus not seen in generations, with significant implications for private equity investors. Interest in this sector has surged globally, and Europe in particular is witnessing a marked increase in activity.
As momentum continues to grow in this sector, investors and issuers are presented with both distinctive opportunities and complex challenges. In this podcast, our private capital team consisting of Peter Banks, Hendrik Roehricht, Magdalena Nasilowska, and Alain Dermarkar, examine the most recent trends, principal drivers, and challenges shaping private equity investment in the defense sector.
The sector's attractiveness is underpinned by major political shifts and a renewed sense of urgency, particularly in Europe and the U.S. In this podcast, our team explores the evolving landscape of defense-sector investment, focusing on the following areas:
- Drivers of investor interest
- Changing investor profile and market dynamics
- Opportunities for portfolio companies
- Regulatory considerations and developments
- Understanding the defense ecosystem
Our experience
Our team has advised on some of the most significant private equity transactions in the defense sector, including:
- Coherent Corp., a global leader in photonics, in the USD400 million sale of its aerospace and defense business to Advent International, L.P., a leading global private equity investor
- Bridgepoint on the sale of Element, a global provider of testing, inspection, and certification services with aerospace and defense applications, to Temasek
- J.F. Lehman & Company on several transactions, including its acquisition of Narda-MITEQ, a supplier of high-technology interconnect, sensor and antenna solutions, from L3Harris Technologies, and its subsequent sale to Amphenol Corp
- BAE Systems on the disposal of its regional aircraft operating lease business to Fortress and its aerostructures business to Onex
These transactions highlight our ability to deliver tailored solutions in a highly regulated and rapidly evolving sector.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
