Arabic version: الاستثمار الخاص يوسّع استثماراته في تكنولوجيا الدفاع
According to Cnbc, private equity growth investments in defense reached $4 billion in the first nine months of 2026, compared with $500 million in 2024. Traditional buyout investors are increasingly backing younger, high-growth companies as military spending rises and countries seek stronger military capabilities.
PitchBook said the number of defense private-equity growth deals rose from 15 in 2024 to 31 in 2025 and 48 through September 2026. Those investments represented 41% of defense PE deal value in 2026, up from 3% in 2024. Jim Corridore, PitchBook’s lead industrials analyst, said: “It is clear to me that PE is moving into territory VC used to own.”
Analysts expect private equity, debt and other financing to play a larger role as defense technology companies move from innovation to industrial-scale production. A White & Case survey of 250 senior decision-makers at U.K. defense companies found that 97% expected their businesses to seek significant external funding over the next 12 months. Daniel Turgel, a White & Case partner, said private capital is playing a critical role in financing defense technology companies.
Advent International announced a commitment of up to $1 billion to next-generation defense technology in March, including investments in Shield AI and Saronic. Shonnel Malani, Advent’s managing partner and global head of aerospace and defense, said the firm had deployed roughly three-quarters of that commitment. He also warned that companies are increasingly valued on technological promise rather than revenue, profit or order books, creating a risk of a correction.
Other investors remain focused on established, profitable suppliers. Lionel Mestre of Weinberg Capital Partners said his firm targets businesses with established products, customers and positive cash flow, while seeing opportunities to fund manufacturing expansion and consolidate Europe’s fragmented defense supply chain. PitchBook recorded 504 defense PE deals and 101 exits since 2021; IPOs made up 70% of defense PE exit value through September 2026.
