Tikehau Capital, in collaboration with Société Générale Assurances, CNP Assurances, and the CARAC Group, has launched a private equity fund focused on European defense and security. This initiative aims to bolster French and European industrial capabilities amid growing strategic autonomy challenges. The fund, named Tikehau Défense et Sécurité (TDS), starts with an initial commitment of 150 million euros equally contributed by the three insurers.
The fund is designed to support future European leaders while promoting job creation and economic growth in France and Europe. Aeronautics and cybersecurity sectors will receive particular attention due to their market size and growth potential. Companies in these fields often have dual civilian and military activities, enhancing resilience.
TDS is described as "a unique investment product tailored to the challenges of sovereignty." It is the first unlisted asset vehicle eligible for unit-linked investment dedicated entirely to defense and security issues. Initially, only the three partner insurers can list and market the fund until September 2026. Afterward, it may be offered to other insurers and professional investors.
The fund allows individual policyholders to diversify their savings by investing in strategic sectors of the European economy while targeting attractive performance. It will invest primarily in primary, secondary or co-investment opportunities within European companies in targeted sectors, leveraging Tikehau Capital's expertise in private equity.
Henri Marcoux, Deputy CEO of Tikehau Capital stated: "With four private asset unit-linked products launched in 5 years...we are now looking to go one step further by offering a fund invested mainly in private equity."
Michel Andignac, CEO of CARAC Group emphasized: "As a partner...taking part to the launch of this fund dedicated to defense and security seemed natural to us."
Philippe Perret, CEO of Société Générale Assurances added: "We are delighted...It provides investors with a unique opportunity for diversification..."
François Guilgot from CNP Assurances noted: "CNP Assurances relies on the expertise of Tikehau Capital...to participate in the development of the industrial fabric of European defense..."
This initiative also involves support from the French Ministry of Defense and Armament Procurement Agency. The new structure will adopt an evergreen format with a 99-year lifespan under ELTIF 2.0 regulations.