In Private Debt Investor, Patrick Schoennagel, Managing Director and Co-Head of European Capital Solutions, and Géraud Estrangin, Managing Director in the Industrials Group, comment on how investor sentiment and financing dynamics across the European defence sector have evolved in recent years.
Mr. Estrangin highlights consolidation opportunities across the aerospace and defence supply chain, particularly where aerospace businesses with defence exposure are expanding into defence-related components, creating potential opportunities for lenders.
Mr. Schoennagel notes a shift in private credit sentiment from post-COVID-19 ESG-driven caution to renewed investor appetite, supported by Europe’s defence investment needs. He also points to a broader rotation from software into “old economy” sectors, with defence well positioned given its industrial base, government-backed demand, and a supportive fundraising backdrop.
You can read the article here.